Much-Needed Reforms to Improve Pakistan Real Estate Sector
To show its true potential and to offer maximum benefits, the concerned officials should consider the following pointers.
Introduction & Implementation of Quick ReformsDue to lack of proper guidance, and very high risk posed in other investment sectors in Pakistan, most of the people here feel psychological affinity towards investment in property sector. State Bank has also stated in its recently released report that there has been a steady increase in the remittances sent by overseas Pakistanis during 2014. Much of this capital is already being invested into Pakistan real estate sector. Asad Mirza, Director of HomesPakistan, stated, "As compared to previous years, an overall boom in Pakistan property sector has been observed throughout the year and this trend of investment is likely to continue in the positive direction." "Aggressive marketing by realtors and positive reforms by government can play a positive role to further improve this sector," he said further.
Introduction of Well-Structured Real Estate Information SystemReal estate is certainly the first choice for most of the people to invest their hard-earned money. However, an element of doubt always ambushes in about the validity and reliability of transactions, just because heavy investment is involved and this is what keeping several potential investors away. Complicated procedures of documentation, doubtful legal support and above all, limited access to true information are the barriers, affecting adversely the performance of Pakistan real estate market. Therefore, introduction of an efficient and well-structured real estate information system and creation of a centralised database is the dire need of time. It will help people checking the transparency of their transactions and understanding whether it is safe & legal to invest in any given project or not.
Making Land Ownership Records Available to PublicAnother hurdle that keeps potential investors from investing in Pakistan real estate sector is corruption, unavailability of authentic ownership records, concealing & destruction of some records, record tampering or unnecessary delay in record verification process. In bigger cities like Karachi and Lahore, it is extremely difficult to access the record and get it verified. Government and concerned officials must collect, examine and verify land ownership records and make these records available to everyone, whosoever wants to access them. Besides ownership records, the records available with building control authorities and related departments must also be scrutinized for verification and made available for public. Government and concerned officials must consult all institutional stakeholders, and take serious action regarding land records. This step alone can attract potential investors by making transactions transparent.
Absence of an authentic system mostly affects innocent people who fall prey to shrewd sellers. A well-managed real estate information system is crucial to help people making their choices and conducting transparent transactions of properties, which is the need of time.