Pakistan Real Estate Regulatory Authority was established with the prime role of regulating the real estate sector to ensure tax compliance and transparency. For years, the country’s real estate industry has been mishandled due to a lack of proper regulations, and corrupt practices, that led to investors’ distrust and financial losses of end users. According to reports, nearly 70% of property transactions in Pakistan have historically been undocumented or undervalued.
This created a need for an authority to regulate all of this, also as part of the IMF loan program, which demanded a crackdown on tax evasion, the government had to plan RERA’s establishment. The authority shall monitor real estate developments take regulatory actions and implement them through strict guidelines. With proper implementation, this authority can transform Pakistan’s real estate market into a secure and profitable sector for investors and end-users alike.
Real Estate Regulatory Authority Act, 2020
The Real Estate Regulatory Authority Act, 2020 was passed by the National Assembly of Pakistan as a step to regulate the country’s real estate sector. The Real Estate Regulatory Authority was thus established (currently in Punjab and Karachi only), to monitor all the mega real estate developments and housing societies across Pakistan, protect buyers from fraud, bring efficiency, and ensure transparency.
Real Estate Regulatory Authority Punjab
The Real Estate Regulatory Authority Punjab aims to regulate housing societies and all kinds of real estate developments in Punjab. It plays a crucial role in land approvals, countering illegal developments, and handling end-users’ concerns. Punjab, particularly, cities like Lahore and Islamabad, has rapidly become the hub of large-scale housing schemes, RERA aims to create a secure and well-regulated property market for investors and homebuyers.
Real Estate Regulatory Authority Karachi
The Real Estate Regulatory Authority Karachi aims to control uncontrolled urban expansion in the city. It regulates high-rise developments and monitors property transactions thoroughly. Given Karachi’s dense population and rapid yet unplanned real estate growth, the authority is entitled to bring Karachi’s property sector in order.
How RERA Can Benefit Real Estate Investors in Pakistan?
Pakistan Real Estate Regulatory Authority (RERA) is meant to protect the real estate sector by ensuring transparency, and security in property transactions. Here’s how it will do so:
Eliminate Fraud & Project Delays
With strict actions such as the recent crackdown on tax evasion, RERA shall eliminate property fraud by making developers follow strict guidelines and set them accountable for proceedings & project timelines.
Secure and Registered Transactions
RERA also brings clear property documentation and registration processes resulting in secure transactions and lesser risks of scams and losing money in unauthorized projects.
Boost Buyers Trust
With this authority in action, buyers and investors can trust that their money is going into verified housing societies and real estate projects with proper approvals.
Real Estate Market Stability
Shortly, RERA will boost investor confidence, making the real estate market more stable and profitable. Be it residential or commercial projects, RERA-approved projects shall ensure a safer experience.
Challenges and Future of RERA
RERA Pakistan, despite the benefits, faces challenges in fully implementing the required regulations. For instance, lack of awareness among buyers regarding property tax policies, delays in registration of housing projects due to bureaucratic delays, and challenges in implementing the policies in small cities, where illegal developments continue to be built without any oversight.
To ensure the RERA regulations are effective, the Government should introduce fast-track legal proceedings, and measures such as penalties, or strict actions against tax evasion, and digital monitoring. This way, it is highly anticipated to enhance investor’s confidence and bring long-term stability to the real estate market.
RERA: Concerns from the Real Estate Community
Although the RERA is set to regulate the real estate sector, many developers and investors have raised concerns about its impact. Here are some of the major concerns:
- A complex approval process on the governmental side may slow down new projects.
- Strict regulations and compliance tax on property shall increase costs
- Delayed launches in the projects due to delays in approvals
- Lack of awareness about RERA rules
- Impact on small developers and builders
Ending Notes
Pakistan Real Estate Regulatory Authority is crucial for the regulation and upkeep of the country’s real estate sector. With RERA Punjab and RERA Karachi, buyers and investors can easily make safe property transactions. This will create a more secure investment environment, benefiting both buyers and developers. Also, whether you are investing in housing societies or commercial properties, compliance with RERA laws is crucial to avoid legal complications.
Driven on a mission to a Fraud-Free real estate by 2030, Makaan Solutions provides reliable services to help you get through the evolving real estate landscape. So get in touch for expert guidance and hassle-free property dealings.
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