Strong demands have emerged for strict nationwide regulation of Pakistan’s real estate sector following the lifting of restrictions on converting residential plots into commercial use in Karachi, with calls for a legal framework modelled on Dubai’s property laws to protect consumers from fraud and financial exploitation.
Speaking at a press conference at the head office of the Consumers Association of Pakistan (CAP), CAP Chairman Kaukab Iqbal described the court ruling as a historic development for Karachi’s economy, property market and business activity, saying the decision would significantly increase property values and attract fresh investment.
He, however, stressed that the absence of effective regulation had exposed thousands of buyers to fraud, delayed possession and financial losses in housing and development schemes across the country, particularly in Karachi.
He called for a comprehensive regulatory mechanism under which builders and developers would be barred from taking direct bookings from the public, proposing that all transactions should instead be processed through authorised government institutions under strict oversight.
He further proposed mandatory security deposits from developers before the launch of any project to ensure compensation for buyers in cases of delay, non-completion or unlawful additional charges.
Warning of large-scale fraud in the property sector, he said many developers were marketing and selling projects without possessing legal ownership of land, while consumers were being misled through aggressive advertising campaigns and left without either possession or refunds.
He also called for clear laws governing the conversion of residential properties into commercial use, warning that unchecked commercialisation could damage residential neighbourhoods through the spread of warehouses, workshops and other incompatible business activities.
The CAP chairman announced the formation of a committee under the association’s vice chairman Muhammad Kamal Mughal to address complaints related to delayed property delivery and inspect projects in accordance with approved maps of the Sindh Building Control Authority.
He also announced that a dedicated property complaint centre would soon be established on Tariq Road to facilitate public complaints against builders and developers.
