Technology can help enhance transparency in Pakistan’s real estate market: WealthPK

ISLAMABAD:Experts advise overseas Pakistanis to take a research-driven approach to real estate investments, prioritising legal due diligence, economic stability, and market resilience.
“Focusing on long-term growth over speculation ensures sustainable returns while minimising risks,” says Hassan Raza, advocate and legal consultant at Sheikh Law Associates, which specialises in various fields, including real estate, construction, property, and civil law.
Talking to WealthPK, he said Pakistan’s real estate sector, despite being one of the most lucrative industries, has long struggled with a trust deficit among investors and buyers. “Concerns about fraudulent practices, misleading advertisements, and a lack of transparency have created significant hurdles to the sector’s sustainable growth.”
He asserted that deceptive marketing tactics had fuelled skepticism among both local and overseas investors. “Many developers use exaggerated claims in advertisements to lure buyers, only for them to later discover hidden costs or legal disputes,” he explained.
Raza emphasised that ethical marketing practices are crucial to restoring investor confidence and ensuring long-term stability in the industry. “In Pakistan, numerous housing societies are marketed as ‘approved’ projects despite incomplete documentation or pending approvals from regulatory authorities. This misrepresentation creates legal complications for buyers who invest in these properties, believing they are making secure investments,” he pointed out.
In addition to regulatory reforms, Raza pointed to technology as a transformative tool for enhancing transparency in the real estate market. He recommended the development of verified online platforms featuring authentic property listings and reviews, enabling investors to make informed decisions. Such platforms, he argued, could act as a bridge of trust between developers and buyers, reducing the risks associated with misinformation and fraudulent transactions.
Meanwhile, speaking to WealthPK, Hammad Ali, a real estate analyst at Rawaha State and Builders, a property developer, said legal clarity is essential factor for overseas Pakistanis, who often fall victim to fraudulent schemes due to a lack of direct oversight.
To counter this, Ali suggested that real estate companies should be legally bound to disclose the true status of their projects in all promotional materials.
He also said that a lack of regulatory oversight allows developers and marketers to set arbitrary prices, contributing to market volatility where prices fluctuate based on artificial demand rather than actual value.
He recommended that authorities introduce stricter policies requiring real estate advertisements to adhere to verified price listings.
“Ultimately, rebuilding trust in Pakistan’s real estate sector lies in ensuring that ethical marketing becomes the norm rather than the exception. If the industry adopts responsible advertising practices and greater transparency, it can attract more stable investments, benefiting both developers and buyers in the long run,” Ali underscored.