CAP Calls for Stronger Real Estate Rules to Protect Buyers

KARACHI, October 2026: Chairman of the Consumers Association of Pakistan (CAP) Kaukab Iqbal has called for urgent reforms in the real estate sector to protect citizens’ lifelong savings from unapproved projects and potentially fraudulent practices.

Iqbal urged the government to prohibit builders and developers from advertising, booking or collecting money for residential and commercial projects until they obtain all required approvals from the relevant authorities.

He said the rapid growth of real estate advertising in Karachi and other parts of Pakistan has made stronger consumer protection increasingly important. Buyers are often attracted by discounts, cars, prizes and other promotional offers without having an easy way to verify a project’s legal status.

CAP Seeks Mandatory Approval Details

Iqbal said every real estate advertisement should clearly display the project’s approval number, No-Objection Certificate (NOC) number and approval date.

Projects operating under the Sindh Building Control Authority, development authorities or other competent bodies should provide these details prominently. Consumers should be able to verify the information before making any payment.

He also called for mandatory verification of land ownership and the total area available for each project before authorities grant permission to market it.

According to Iqbal, regulators should ensure that developers have sufficient land and legal rights for the projects they promote. Authorities should also prevent multiple projects from being marketed against the same land or inadequate land holdings.

Dubai-Style Escrow System Proposed

The CAP chairman proposed a Dubai-style escrow account system for Pakistan’s real estate sector.

Under the proposed system, buyers would deposit payments into a regulated escrow account rather than directly into a builder’s account. The developer would then receive funds in stages according to independently verified construction progress.

Iqbal said the mechanism would protect buyers while also encouraging developers to complete projects according to approved timelines.

He also called for a centralised digital real estate registry containing information on approved projects, developers, land ownership, NOCs, approval numbers, construction progress and expected completion dates.

The information, he said, should be available through a public online portal. Such a system would help both local and overseas Pakistanis verify a project before investing.

CAP Wants Blacklist and Fast-Track Tribunal

Iqbal proposed maintaining a public record of developers who repeatedly violate consumer and regulatory laws.

Developers who abandon projects, cause financial losses or breach approval requirements should face penalties, legal proceedings and, where appropriate, restrictions on launching new projects, he said.

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He also called for clear legal remedies when developers fail to meet approved completion schedules.

Consumers should have access to refunds, compensation and other remedies. A dedicated real estate consumer dispute mechanism or fast-track tribunal should also handle complaints, allowing affected buyers to avoid lengthy legal proceedings.

Before approving major projects, regulators should assess a developer’s legal status, land ownership, financial capacity and record of previous projects.

Iqbal said buyers should receive complete written information before booking. This should include approvals, total project cost, payment schedule, construction timeline, expected possession date and contractual terms.

Overseas Pakistanis Also Need Protection

Iqbal particularly highlighted the need to protect overseas Pakistanis who invest in the country’s property market.

He called for an online verification system that would allow overseas buyers to independently check project approvals, land ownership, NOCs, developer credentials and construction progress.

The CAP chairman stressed that the association does not oppose legitimate construction and real estate activity.

Instead, he said, the objective is to prevent non-transparent and unapproved practices that expose consumers to financial losses.

Iqbal said developers that meet legal requirements and maintain transparent operations should receive government support. However, those that collect money through unapproved or questionable projects should face strict action.

He urged the government to make a simple principle part of the legal framework: verify the land and approvals first, announce the project next, then advertise and accept bookings, while protecting buyers’ money through an escrow account.

“Citizens’ lifelong savings cannot be left at the mercy of irresponsible or fraudulent builders,” Iqbal said. “The government must act immediately to protect real estate consumers, restore public confidence and ensure that every property investment is transparent, lawful and secure.”