Pakistan Real Estate Is On The Verge Of Regularization
Pakistan's real estate is the one can bring investors enormous returns. But sadly, it is also the one which lacks an appropriate structure of regulations. And this is the reason the government went after the real estate sector when it announced new taxes last year. Up to this point, no genuine endeavor was made to regularize this sector.
However, it appears that things might be improving as of late. For an amateur investor or home buyer, the real estate market can end up being ruthless. Take the case of Gwadar for example, while there is plenty of new opportunities, there is also a good number of scams on the floor. Some real estate projects have even constrained the National Accountability Bureau (NAB) to get involved.
A Ray Of Light?
As indicated by the recent Companies Act 2017, a new arrangement will be applicable to the real estate development companies and the companies that are registered with security and exchange commission of Pakistan (SECP). As indicated by new sources, the real estate will be given over to the SECP, which will serve as a watchdog.
The legislation which still needs approval from National Assembly doesn’t allow real estate companies to advertise any of their projects or book units without the approval from SECP. The commission will also have the authority to block business operations of real estate as well as property agents. Furthermore, it will be responsible to provide safe investment environment to those looking to put their resources into real estate.
A key thing to note here is that as per the proposed legislation, the authority will have a predefined set of rules under which it will keep on working. SECP will also make sure that the buyers’ money is only used for the developmental work it was meant for.
Moreover, SECP has a plan in place to tackle the extensive advertising and project marketing that will ensure that no developer can announce or market a project until it gets all the required approvals from concerning authorities.
Let’s wait and see how the companies act 2017 is approved. Hopefully, it will enable the SECP to regularize our country’s real estate in a manner that will make it more investment-friendly.
Please give your feedback in the comment section below.