Islamabad, November 17, 2023 (PAKONOMY): Understanding the critical role of robust regulatory measures in the real estate sector is essential for unlocking sustainable development, transparency, and safeguarding stakeholders’ interests in Pakistan.
The real estate sector in Pakistan stands at the forefront of addressing economic challenges, with Babar Bhatti, Vice President of the Islamabad Estate Agents Association, emphasizing its pivotal role. The sector not only supports allied industries but also acts as a substantial generator of employment opportunities.
To comprehend the necessity of regulatory measures, it’s crucial to acknowledge the pressing challenges faced by the real estate sector in Pakistan. These challenges include bolstering investor confidence and ensuring the security of investments in an environment where real estate transactions involve substantial financial commitments.
Investor confidence is paramount, and establishing robust legal frameworks becomes imperative to instill trust. Rizwan Alam from Sky Marketing, Islamabad, sheds light on the existing loopholes, stressing the need for clear rules and standards to address malpractices.
Enhancing property rights protection and implementing effective dispute resolution mechanisms are vital steps. Legal expert Rizwan Alam calls for an effective mechanism to bring the real estate sector under the tax net to curb malpractices, including tax evasion and fraudulent transactions.
Promoting transparency in property transactions emerges as a key solution. Measures such as digital record-keeping and authentication contribute to building trust among investors.
According to the State Bank of Pakistan, the real estate sector contributes around 2% of the country’s GDP, making it one of the largest and fastest-growing sectors.
Rizwan Alam recommends an effective mechanism to bring the real estate sector under the tax net, formalizing transactions to establish clear rules and standards. This formalization can serve as a deterrent to malpractices, fostering a more transparent and accountable environment.
In conclusion, understanding the “What, Why, and How” of real estate sector regulation is crucial for sustainable development in Pakistan. Addressing challenges, enhancing legal frameworks, and promoting transparency are key components for fostering a secure and accountable environment for investors.