Govt to constitute real estate regulator
The government plans to establish a Real Estate Regulatory Authority (Rera) in the next 3 years in a bid to improve the performance of the land markets and to enhance the real estate investment in the country, said an official.
The regulator will evolve laws and procedures for licensing and registration of real estate agents and companies and will develop a database on land, housing and real estate transactions.
The official said that the establishment of Rera will help at large to abolish the unregulated land market in the absence of licensing and registration regulations for real estate agents and companies. It will also help to bring an end to non-transparent and uncertain land transactions, scarcity, hoardings and speculation.
The Securities and Exchange Commission of Pakistan and real estate market representatives will enforce the law framed by the regulatory authority.
According to a Household Integrated Economic Survey (HIES) report, an average Pakistani family spent Rs888 every month as rent in the year 2001-02, which surged to Rs2,693 in 2010-2011, depicting an increase of 13.12% in the period. The report further said that during the same timeframe, average house rent in rural areas was 2.7 % higher than the corresponding increase in urban areas.
Published in The Express Tribune, August 26th, 2012.
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Real Estate can be engine for tremendous growth for Pakistan economy provided effective laws and regulations are drafted and enforced, courts stop granting stays for indefinite periods, and mafia of patwari/registrar is broken.