1 INTRODUCTION

1.1 What Is Real Estate Business

Real estate is is a common established business that is used to facilitate the societal
conditions of the country . it constitutes of land including air and ground focusing on the
infrastructure the buildings, vacant lands ,plots (residential or commercial) with its
natural resources such as crops, minerals or water and immovable property of
nature.Venturing interest in real property buildings ,the housing in general. The
profession of real estate business is about buying, selling, renting land, buildings, or
housing ,studying property listing or finding new interested prospects

Real estate is a term that encompasses land along with anything permanently conjucted to
the land, such as buildings, houses or specifically property that is fixed in location. Real
estate law is the body of regulations ,legal codes which pertain to such matters under a
particular jurisdiction and include things such as commercial and residential real property
transactions. Real estate is often with real property(sometimes called realty ), in contrast
With Land and anything fixed, unmobiled, or permanently attached to itsuch as assets,
buildings, fences, fixtures, improvements, roads, shrubs and trees structures,utilities
walls. Title to real estate normally includes title to air rights, mineral rights, and surface
rights which can be owned ,leased, sold, or transferred together or separately, also called
real property or realty.

Real" is derived from the Latin word for Royal. The translated term, Royal Estate refers
to an age-old system of land ownership and feudalism which developed independently
all over the world. The Royal family owned all the land within its kingdom, and with it
controlled its use and appeared at the right to tax users and occupants of the land. A
derivative system prevails among municipal organizations today in the form of renowned
domain which can sieze private property for public use. Also tax liens enjoy the
seniormost position among liens and claims against property giving the municipal
organization the ultimate right to seize property ahead of any other claimants

 According to the Barron’s Dictionary of Finance,

the term Real Estaterefers to the piece of land and all physical property related to
it,including houses, fences, landscaping and all rights related to the airabove and earth
below the property. Real estate deals not only withthe architectural design and
infrastructure of a building but also withits finance and potentiality. It is an area that is
highly influenced by thepopulation density, income generation and tastes of the people
andeconomic growth of a country under different period of time.
The Real Estate market forms the backbone of the urban economy being a fixed factor
market; hence an efficient Real Estate market is most important for a well functioning
urban environment. An efficient Real Estate market is one that encourages quick and
development and transaction of land, provides reasonable access and opportunities to all
income groups, environmentally sound and the system governing the land markets are
abided with other laws and regulations governing land, such as research planning and
development , taxation and provision of public infrastructure and services.

Real estate is one of the businesses that are demand today. These real estate companies
are establishing their own company name to provide homes that can be affordable for
those people who are looking for homes. The long history of Real Estate companies has
become one of the reasons why more people are looking forward to have this as their
future needs too. They consider this real estate business as one of the essential thing in
the present time for it is what people need. Security for home is what the companies are
providing to people for the increasing demand of the land and housing properties. It is
also maybe for the reason that the growing population also increases the probability to
lack the space as years are passing by and all of the land areas can already be occupied.

 According to the World Bank in most countries, real estate (including land) accounts
for between half and three-quarters of national wealth. In Pakistan about 250 ancillary
industries, such as cement, steel, brick, timber and building materials, are dependent
on the real estate industry. These combined make it the second largest employer next
only to agriculture sector as well

1.2 Over View Of Real Estate Industry In Pakistan

The development of the real estate markets in Pakistan has been constrained by a wide
range of factors. The land administration practices are from the colony settlement era;
laws and regulations governing real estate development and investment are traditionally
employed housing finance is mainly available to individuals in the higher income group;
only a small percentage of the loans disbursed by housing finance because of little scope
companies go to builders and institutional developers; and, access to real estate
professional services is not available to participants in real estate market because lack of
credibility .

The housing sector plays a crucial role in economic growth and stabilization by creating
employment opportunities in construction and materials and demand for financial
services. Utilizing the labour force efficiently The housing sector in Pakistan is still
towards maturity when compared with other developing and developed countries. There
is, however, tremendous potential for growth. The issues in the housing sector that
threaten the growth achieved are high land prices, high and rising real interest rates and
prices of construction materials along with basic necessities are not in range .
Although the ownership rate in Pakistan is high, (i.e., owned homes as a proportion of
total dwellings) the quality of a large segment of dwellings leaves much to be desired
limits the financial constraint serving as an asset and many of the externalities of housing
are thus not captured. The process of producing housing involves a large number of
actors. The government through its various institutions coordinates the functioning of
these actors by supporting or regulating these activities

real Estate in Pakistan is a growing sector of the economy of Pakistan. Pakistan spends
$5.2 billion on construction in a year. Moreover, many more billions are spent on buying
residential and commercial plots. According to the Pakistan Bureau of Statistics,
construction output accounts for 2% of GDP, with housing representing less than half that
total. With the rate of urbanization that Pakistan has been experiencing, there is a growing
need for urban planning.

Development of real estate business in Pakistan

1.2.1 Urbanization In Pakistan
Urbanization is the process of population growth in urban areas. There are many ways to
define an urban population. Through population density, population magnitude,
Governmental, political policies , or economic functions pakistan has long been a nation
defined by its geography. It is the country where majority of the population is based and
and where the largest industrialization is at great extant

Economic module suggests that Structural transformation usually takes place when
resources are reallocated from low productivity agriculture to high productivity industry
and services sectors. Cities and urban areas have high rate of tendency of these sectors
which benefit from migration of the surplus and underemployed labour. Rapid economic
growth is therefore associated with urbanization. The phase of urbanization is, in turn,
accelerated in result with migration.

It has been determined no country has grown to middle income status without
industrializing and urbanizing. None has grown to high income without vibrant cities.
Between 1980 and 1998, 86 percent of the growth in value added in developing countries
came from the manufacturing and services sector. Rapid productivity gains mainly
reflected improvements in the industry and services. Between 1985 and 2005, the urban
population in developing counties grew by more than 8.3 million a year. With falling
costs of Transport and communication and a greater potential for exploiting scale
economies, towns and cities have grown bigger and densitily populated

In the fifties and sixties, Pakistan adopted green revolution technologies in agricultural
sector and also opted for large-scale industrialization. As a result of these two factors,
there was massive rural-urban migration as tendency of living increases (majority of
these belonged to the lower-income group) desired to move in urban areas for having
basic necessities which are not far available in rural areas. Additionally, there are a lot of
variables like asset requirements , mechanical changes, rising desires, chances to work
abroad, that have been influenced by, urban life The other drivers for increased urban
areas are high birth rate and migration from rural areas. People are moving from the
countryside to urban areas in droves for better livelihoods and access to relatively better
services such as education and healthcare. The second reason for migration — one with
troubling consequences for stability and security The scale of migration was too large for
the State to manage and so instead of building houses, the state decided to adopt the site-
and-services concept. It often happens in those areas where land is barren not capable of
promoting agriculture growth modern technology plus mechanical ,civil engeneering
skills are then exploited to transform such land into housing socities which compel
people to migrate

A unique aspect of Pakistan’s real estate market is that the industry hits record highs and
lows within a time frame of a few years. Elsewhere in the world (barring the 2005 sub-
prime mortgage crisis), the real estate industry more or less follows a steady growth rate
(five to eight percent per annum is the average).
With the rate of urbanization that Pakistan has been experiencing, there is a growing need
for urban planning. Land use planners have to upgrade their skills considerably to
monitor and forecasts land use trends and infrastructure needs in a manner consistent
with the anticipated medium-term growth of the cities and their financial capabilities. It is
recommended that Research and development Capacity be built up, through the Real
Estate Federation (whose members should include professional real estate brokers) and a
Housing and Real Estate Institute.

The majority of people in Pakistan live in the countryside, with only one-third of the
country's estimated 188 million inhabitants currently are in cities Pakistan is urbanizing at
an annual rate of 3%- Pakistan is one of the fastest urbanizing countries in Asia and the
share of urban population has risen from 17% in 1951 to 37% in 2010 and to 39.7% in
2019 with annual rate of urban change at 2.77% urbanization in Pakistan is caused due to
both external/internal migration to the cities and natural increase. The research on
urbanization is challenging because a differences lies in defining of urban communities in
different contexts and unavailability of latest census data.. Urbanization in Pakistan
requires a tremendous focus on governance structure and policies, eliminating poverty,
providing education, housing, transportation, employment, public health and
supplementary amenities at an considerable level

Population growth and net migration are the major forces behind urban growth. About
one-fifth of the annual rise in urban population can be attributed to net migration. Large
cities with population of one million and above had a share in the total population of 50%
in 1998 which by now have risen to at least 66% or more. Urban areas contribute 80% of
GDP, which accounts for 60% of the employed labour force of the country. Urban
poverty rate is almost one half of that the rural poverty rate. Per capita income levels and
growth rates have also been relatively higher in the urban areas.

The villages and hamlets of the1980s have grown enormously into oversized and slums’,
irrespective of development works by provincial and local governments, in construction
of roads, cementing streets of villages, water supply system, rural health centre provision
of electricity and sui gas facilities Movement or shifting of people from rural to urban has
a direct link of accelatering of economy from rural to urban. Agriculture sector is the
major contributor in Pakistan’s economy

The rural-urban divide has been a major cause of concern and instead of building
linkages and synergies this divide has created an environment of adversity. Instead of
assuming a zero sum game the urban-rural impact can in fact lead to a positive sum game
resulting in a win-win situation for both t rural and urban population. Large metropolitan
areas can link Intermediate cities and town through better connectivity and these in turn
can serve as the pivots for the rural areas. The larger cities can draw workers from these
towns through commuting. Towns can draw sustenance from the agricultural activity of
the rural areas if a network of Farm to Market Roads is built connecting the two. Town
would become market centres for agricultural output, places of seasonal job opportunities
for farm labour and as providers of secondary education and health care services
 Urbanization in pakistan

Urbanization development of new cities

 2 HISTORICAL BACKGROUND

2.1 THE ORIGION OF REAL ESTATE

2.1.1 In International Perspective
The term "Real estate" is first recorded 1660s The history of selling real estate is
dependent upon the country where they conduct their trades. In the United States, real
estate brokers began presenting houses of around 1900, and they have continued to today
In countries like Australia, the practice of real estate sales has been present, but only
recently have real estate brokers and agents come together to form common associations
for home sales.

The first records for home sales in the United States begin around 1890 as an attempt to
form a real estate association failed, but it began a process. by 1908, the National
Association of Real Estate Exchanges was founded to bring brokers and agents together
at one platform to facilitate the selling of homes and plots . Despite the presence of the
association, until 1919, anyone could pretend themselves a ‘real estate broker’ without
any professional certification or licensing.The practice of selling homes in this era was at
a peak practice at best as brokers placed multiple placards in front of homes trying to
compete leaving homeowners to simply evaluate from numerous choices. Traditional real
estate sales practices emerged out of this era as true real estate agents asked permission to
gain listings to sell and earn a home-seller’s trust. Single competent agents gained
exclusive contracts in major cities such as Chicago, Baltimore, and this enabled these
agents to become the go-between for home-sellers and buyers who have potential by
incorporating the practices of walk through and open houses used to sell homes for over
100 years.

In the 1910s, the first open house occurred over several weeks as a way to open homes to
the public. The public could see new building ,architectural concepts as home technology
such as electric lighting space utilization and kitchen layouts and new techniques which
can modernize homes making them more desirable.

In 1925, the National Real Estate Journal presented the idea of presenting furnished,well
decorated ‘staged’ homes for review to give buyers a feeling of already being home.

In the 1930s and 1940s, real estate agents used one open house to create sales networks
of multiple homes to present to buyers. If one house was not desired, then agents could
have a coordinated set of network to improve chances of a sale.
In the 1940s and 1950s, the post-World War II world saw a boom in real estate sales as
soldiers also deamed for a secure place to call home and raise a family. Homes entered
and exited the market in rapid time

Finally in 1952, the use of model homes emerged in Dallas, Texas as a way to present a
finished home to thousands of people representing another built unit for purchase.

The new era of real estate was to figure out best ways to sell a home remains to get
people in the home. What has changed the emergence of the Internet as a way to list, find
and schedule appointments in efficient way New sites such allow new prospective home
buyers to see homes before they actually set foot in a home giving them a better feel for
areas of the home they want to focus on. The Internet has also facilitated the ability to
schedule showings, and buyers can see several homes in a day rather than one or two in a
day drawing out the buying process. Real estate agents were quick to adopt these
innovations in order to present the best aspects of the home and improve chances of the
sale and bring their listings together in one spot.

Real estate, as a whole, and housing, in particular, is the single largest asset welth class.
The resources in land are immense. According to the World Bank, in most countries, real
estate (including land) accounts for between half and three-quarters of national wealth. In
the UK, land and buildings were estimated to comprise a total of 57% of the national
wealth in 1997, while in the United States, real estate was estimated to represent almost
70% of all tangible capital in 1993, and the taxable value of real properties in the USA
were estimated at nearly US$6 trillion in 1991

2.1.2 In Pakistan Perspective

The start of the real estate sector as an industry in Pakistan was initiated from Karachi.
The real estate agencies in Karachi were in existence even before the independence of
Pakistan. These few agencies were located at Old Karachi near today’s Bandar Road.
There were barons who construct buildings and they hire and utilize labors on daily
wages. Rarely the selling of plot took place, initially, these deals were of few thousands
or few lacs in some rare cases.

The 1950s-1960s
The real estate market started to boom in the 1950s when the areas like Sindhi Muslim
Society, PECHS, Nursery, and Tariq Road were becoming populated gradually. In the late
years of the 1950s, DHA came into being, and in 1960, plots in DHA gained some boom,
but the prices were still very reasonable back then. The allotments of the plot took place
against some rupees and they got sold out against a few hundreds. After some time,
allotment took place against a few hundreds and new deals got finalized against few
thousands. with the passage of time, people got aware and returns of owning properties
in the city. People rapidly migrated towards cities from small villages and this trend of
Karachi real estate sector had been extensively spread throughout the country. It can be
stated that the origion of real estate market of Karachi’s district South is the nursery of
country’s real estate market. District South market, which started to progress in the mid
of 1960s, gradually becomes the backbone of Pakistan’s economy.
Now the real estate market has developed and have remarkable growth to an extent
where a single construction can spin the wheel of almost 50 industries.

Retrieving the data of initial phases of the real estate market in Pakistan is near to
impossible. However, we have the data from the beginning of 1970 taken from some of
the most senior real estate agents of the city. This data will help the newcomers of the real
estate market. this research will be beneficial for future work and will eventually
complement the professional trends of the industry.

The 1970s
The real estate market was normally and steadily progressing from 1970 to 1974. During
1973-1974, when ZA Bhutto introduced Amnesty Scheme, the market boosted. This
boom lasted till 1977. The disastrous flood in DHA and post-election riots in the city
crashed the real estate market of Karachi.

The 1980s – The Afghan War Era

The falling graph remained consistent till 1982. When Martial government gradually
established its feet and Pakistan become center of focus due to Aghan war. That war
brought a lot of financial and moral support for Pakistan from throughout the world. This
positivity resulted as the long-lasting boom of the market from 1982 to 1988, until the
death of Gen Zia ul Haq in a plane crash. The sudden death of then-President caused the
uncertainty in the political scenario of the country which resulted in the crash of the real
estate market from 1988 till 1992.

The 1990s
The market began to progress leisurely from 1992 to 1994, but the overall condition was
still below average in these years. Real estate market saw its next boom from 1994 till
1997. The real estate sector passed through a significant development in these four years.
In 1997, the disastrous rains, and power crisis caused the fall of the market. The market
suffered a recession in 1997 till September 2001.

The 2000s
The real estate market of Pakistan saw its major boom after the 9/11 incident. The upturn
of the market after the 9/11 incident broke all the records of its previous peaks. This
escalation of real estate market dragged the concept of house ownership far away from a
common Pakistani.The massive rise in prices disallowed massive genuine buyers and
discourage them not to purchase property in the early 2000s. The next recession toppled
the market in 2005. This recession long-lasted till June 2010. According to experts, the
major reason behind this recession was the sky-high prices of property. The market began
mending delicately from July 2010. This mending process got a boom in 2012 which
lasted until November 2015. Once again the reason of recession was overpricing.
Finance Bill 2001 Amendment

On 7th June 2016, the federal government approved the amendment in Finance Bill 2001,
this amendment had been made public through advertisements in various newspapers on
28th of June. This development created the howls amongst short-term investors and other
people associated with this domain. The reason behind the outcry was the indication
made by the government that the market rates of the property will be regularized
according to the DC-approved rates in near future. The indication came without any
mechanism and proper homework by the government. The attempt was made by federal
govt after almost 12 years, and by provincial governments after 6 years. A lot of effort
had been made to reduce the gap between market rate and DC rates. The negotiations
between government officials and different unions and associations of real estate agents
and other professionals of real estate industry resulted as the agreement on 80/20 ratio,
where 20% represents documented grey economy and rest of the 80% will be the
undocumented black economy.

Role of Short-term Investments

The short-term investment opportunities in Pakistan is flourishing since last 6 years. In

fact, the two major factors that include the 9/11 factor and uninterrupted democracy
factor since July 2010 until 28th of June 2016, has left the remarkable signs of fruitful
short-term investments in the economy of Pakistan. This peak of short-term investment
will be beneficial for few in future however many will suffer from it. This shiny market
of short-term investment has been created by the disasters made by the ‘economic
terrorists’. Many white-collar businessmen invested their un-tax, unregistered and
undocumented money from other businesses to this domain eyeing the lucrative returns.
Interestingly, in the six-year period of slackness of business and unproductive short-term
investments, the provincial and federal governments deliberately or maybe carelessly did
nothing to control the overpricing in the real estate market. The respective governments
could have controlled the prices by simply just increasing the DC rates each year
moderately. This move by the government could keep the residential property within a
reach of a common man at least. Since there was no action made by the government,
therefore, the large portion of documented white economy investments fell into the grey
economy. Now, the representatives of federation and chamber are seeing it as a threat
(earlier, they were worried that people are shifting their investments from production
industries to unproductive plots trading, and the money of investors are eventually stuck).
In such circumstances, nobody is willing for 20% documented economy at least at the
moment. The field plowed by the ‘economic terrorists’ wasn’t adding, in fact, it was
multiplying investments. Investments were giving returns each day, each hour, in fact,
each moment. Consequently, the market is suffering from inactivity since 28th of June.
However, it is yet to see how long this period of inactivity will take before it ends.
New changes

These 13 rounds of real estate market seem like quite balanced. Comparatively, by the
passage of time, the progress of the economy nationally as well as internationally and
geographical circumstances have been changed. The real estate trends have been
modified in Pakistan particularly in Karachi where the population has been increasing
drastically. The boom of the real estate industry, and the unregistered, undocumented and,
untaxed investments by white-collar people modified the dynamics of economy and
professional behaviors of masses associated with real estate market. However, it is yet to
see that whether the market will proceed with its 45-year-old trends or it will deviate its
path because of above mention activities. The trends reveal that regardless of any excuse.
the core reason behind the recession of the market had always been the overpricing. The
patterns of market trends remained the same for the 43 years out of its 69 years. The
period between the point of peak in the recession to the point of peak in the boom is
essentially consist of 4 to 5 years. The proportion of increment in prices in populated
areas is 4 to 5 percent however for unpopulated areas, that is around 9 to 10 percent.

When a recession starts, the prices in populated areas fell from 0.5 to 1 percent and prices
of unpopulated areas fell to almost 5% or 50% of the previously increased price.
However, apparently, it is difficult for the market to proceed with the same trends
anymore. Despite the fact that real estate trends of the country are similar to what they
were before but now other external factors have been changed. Therefore, we have to
wait and see how market forces will impact the real estate market..

Some people are convinced on the basis of the previous 69-year track record that there is
a fair chance of another recession period of four years. These people believe that even if
the government takes U-turn and reverse its decision, the market is not going back on the
track anytime sooner. Some people believe that this trading of plots has turned out to be
a stock-like market. Therefore, the recession period would not be long and the market
will be stable after a slight correction. The third type of people believes that if the
government reversed its decision the market will boom endlessly. Each opinion has its
own importance but apparently, if we observe history, database research, and the
government’s policy to discourage and prevent investment in this domain reflects that the
market will follow its 69-year old pattern once again. In fact, if the government continues
its policy of white documenting the economy, the recession will become longer and it
may turn out to be worst.
 3 LAWS PERTAINING TO REAL ESTATE
BUSINESS

Every country around the world has its own laws that govern property buying and selling
process and being a part of Pakistan real estate industry, you need to know about the laws
that are related to this important industry. Real estate activities across the country that
include ownership of property, change of titles, selling, buying, leasing etc. are governed
by different laws. Whether you are new to this industry or are not yet aware with all the
laws that govern country’s real estate sector, your premier online property portal has
penned down a list of Pakistan real estate laws to help you make smooth property sales or
purchases and to avoid all kinds of frauds. The principal laws those are obligatory while
buying and selling property in Pakistan include,

The development of clear and verifiable property rights is the supportive part of the
development of efficient urban land markets. Among the wide and complex variety of
property rights existing in advanced industrial economies, real estate property rights are
the most ancient form of rights. Property rights play a crucial role in sound, efficient and
modern urban planning, by lowering the need for costly state interventions.

3.1 The Registration Act 1908

This act extends to the entire Pakistan except a few districts of the country that are
excluded by the provincial governments from their operation. The act has a total of
fifteen sections and includes all the details as regards establishment of the registration.
The Registration Act 1908 thoroughly explains where properties can be registered and
guides people on all the matters that are related to real estate registration in the country
without leaving behind any kind of ambiguity. The purpose of this Act is the conservation
of evidence, assurances, title, and publication of documents and prevention of fraud. It
details the formalities for registering an instrument

3.1.1 Security of ownership and tenure rights

The security of ownership also stimulates land development. Land registration provides
landownership security and develops land sales and rental markets. With security of land
tenure guaranteed, the landowner can lease out part or all of his/her land and move out of
agriculture in search of better opportunities, either in terms of jobs or self-employment.

3.1.2 More efficient land transfers

The cost of delays for permits is a serious constraint in most developing countries, and an
efficient registration system makes transfers easier, less expensive and more secure. Not
only does this reduce land transaction costs but it also speeds up the process of land
acquisition for investors and removes landownership uncertainty, thereby, providing a
considerable investment incentive., enhancing the overall allocation of land resources.
3.1.3 Security of credit
The land title can be used as collateral for loans. This security has a positive impact on
the productivity of the land since it enables the release of major financial resources for
investment in the land.

3.1.4 Improved land use and management

This can directly provide better information on land ownership and rights for physical
planning as well as facilitate the development of other planning tools such as information
banks covering land use, land values, population, etc It can also provide a tool to restrict
certain land uses with a negative environmental impact

3.2 The Stamp Act 1899

According to the Stamp Act 1899, the buyers as well as the sellers are required to pay
certain amounts to government in lieu of stamp papers that are used for making all the
legal agreements or contracts as regards real estate sector across Pakistan. By making use
of the Stamp Act 1899, the buyers and sellers can therefore legally validate their buying
and selling of properties and stay safe from all unfortunate or fraudulent activities. One
should also keep in mind that the cost of stamp papers fluctuates in accordance with
economic situation of country.

3.2.1 Property tax

Property tax is a levy charged by the municipal authorities for the upkeep of basic civic
services in the city. In Pakistan, it is the owners of property who are liable for the
payment of municipal taxes whereas, in countries like the United Kingdom, the occupier
is liable in15 Generally, the property tax is levied on the basis of reasonable rent at which
the property might be let from year to year. The reasonable rent can be actual rent if it is
found to be fair and reasonable.. There is lot of discretion with the assessing officer as a
result of the Rent Control Act, the income of the municipal corporations has become
static.

3.3 The Land Revenue Act 1967

This act lays out the structure and hierarchy of land and revenue department in Pakistan.
It offers comprehensive guidance regarding collection of land revenue in the country such
as the marking of boundaries, arbitrations, and surveys. These elements are instructed by
Land Revenue Act 1967.

3.4 Transfer of Property Act 1882

There is no doubt about the fact that property buying and selling has never been a
flawless procedure across Pakistan. It has never been considered a safe and risk free
procedure, the reason being the primitive land record system, which carries along a lot of
loopholes and pitfalls. This is the reason why buyers are required to carefully get the
property title of the seller checked before making a payment transaction and signing a
contract. The Transfer of Property Act 1882 clarifies about persons who are entitled to
transfer the property.
It also explains the methods of transferring property and the types of properties that can
be transferred. Before you finally decide buying or selling property in Pakistan, you
should always keep these laws in mind in order to ensure smooth and seamless real estate
transactions.

3.5 Types of Real Estate in Pakistan

3.5.1 Sale of Real Estate in Pakistan

Sale of real estate in Pakistan normally takes place through a title document known as a
Sale Deed, except in certain cases e.g. purchase of real estate in Defence Housing
Authority (DHA) or in a housing society where sale deed is not executed for transfer of
title in real estate and an allotment letter/transfer letter from the authority or the society,
as the case may be, is deemed to be the title document. Some people, before execution of
the sale deed, may opt to execute an agreement to sell. However, such agreement to sell
does not transfer title to a property in favour of the vendee. It, nevertheless, does create a
right in favour of the vendee, in case the vendor refuses to honour the terms and
conditions of the agreement, to seek specific enforcement of the agreement to sell. Title
in an immovable property is only deemed to transfer once such Sale Deed or title
document has been executed. A sale deed must be affixed with requisite stamp duty and it
must be registered with the relevant sub-registrar. After registration of the Sale Deed with
the sub-registrar it must be ensured that a mutation of such sale is entered in the register
of mutations kept and maintained by the patwari.

3.5.2 Purchase of Real Estate in Pakistan

Before purchasing real estate in Pakistan, a complete and thorough search in respect of
title of the seller to the real estate must be carried out. A general practice is to investigate
title of the current vendor and any previous owner(s) for the last 20 years. Original title
document in favour of the vendor must be obtained alongwith other relevant documents
including mutation in favour of the vendor, a fresh copy of fard, aks shajra and
NOC/NEC as the case may be. If the vendor is selling the property in the capacity of an
attorney of the owner then it must be ensured that the power of attorney is affixed with
appropriate stamp duty and it has been duly registered with the relevant sub-registrar. If
possible, contact should be made with the owner(s) of the property and authenticity of the
power of attorney confirmed A holder of a forged and fabricated power of attorney may
not be able to transfer a valid title in an immovable property to a third party.
Real estate investments can have a good or bad reputation. A good property can earn you
a fortune, while a bad one may get stuck for years without any positive gain, or you may
have to bear some loss to get rid of it. This all depends on actual homework market
research, future projections, and sometimes external factors like unfavorable decisions or
uncertanities by the Government or delays in mega development projects. The best and
secure way to sell, purchase and transfer of property is firstly to consult with lawyer for
verification and checking the legal status of the property and then to enter into full
written agreement by setting out all the terms and conditions. Non-resident Pakistanis,
overseas Pakistanis and foreigners can have the oppertunity to also purchase immovable
property in Pakistan.

3.6 Lease/Renting out of Real Estate in Pakistan

3.6.1 Landlord's Point of View

Landlord must ensure that lease of an immovable property is executed in writing. Lease
of immovable property for a period of less than a year does not require compulsory
registration. However, lease of immovable property for a period of more than a year must
be registered. If the tenant refuses to pay rent, or for any other reason as stated in the
lease agreement and allowed under the law, the landlord may terminate the lease. If the
tenant refuses to vacate the premises the landlord may file an ejectment petition before
the relevant rent controller.

3.6.2 Tenant's Point of View

Tenant must ensure that he makes payment of the rent either through a crossed cheque, or
where payment is made through some other mode, then a receipt must be obtained from
the landlord. In case the landlord unlawfully or unjustifiably attempts to evict the tenant,
the tenant may file a petition before rent controller in addition to availing other legal
remedies as advised by his counsel.

3.6.3 Gift of Real Estate in Pakistan

Gift of real estate in Pakistan must be made in writing. There is, however, a qualification
to this general rule in case of a Muhammaden. Although allowed under law, it is not
recommended to make oral gifts of immovable property because it may become difficult
to prove an oral gift. Where a gift deed is executed, it must be affixed with appropriate
stamp duty and it must be registered
3.6.4 Declaration of gift;
Acceptance of the gift by the donnee during the lifetime of the donor Transfer of
possession of the subject matter of the gift by the donor to the donnee Once all of the
above-mentioned conditions are satisfied, then the fact of a gift is deemed to be
established.

3.7 Mortgage of Real Estate in Pakistan

3.7.1 Mortgage law

A mortgage is a security interest in real property held by a lender as a security for a debt,
usually a loan of money. A mortgage in itself is not a debt, it is the lender's security for a
debt. It is a transfer of an interest in land (or the equivalent) from the owner to the
mortgage lender, on the condition that this interest will be returned to the owner when the
terms of the mortgage have been satisfied or performed. In other words, the mortgage is
a security for the loan that the lender makes to the borrower.

3.7.2 Legal Mortgage

A legal mortgage is one created under law. Every jurisdiction has its own statutory
requirements for legal mortgages. Typically, the party offering real estate is known as the
"mortgagor." The party offering money is known as the "mortgagee.A legal mortgage in
respect of an immobile property may be created after execution of a mortgage deed. A
mortgage deed must be affixed with appropriate stamp duty and it must be registered with
the relevant sub-registrar.

3.7.3 Equitable Mortgage

Equitable mortgages are relationships that don't meet a jurisdiction's legal mortgage
requirements. When an arrangement meet some requirements of mortgage, some
jurisdictions' courts, known as courts of equity, will recognize the arrangement as a
mortgage even though it isn't a legal mortgage. In such cases, courts will usually look for
the basic elements of a mortgage: If the court finds these elements, the arrangement will
then be treated as a mortgage under law.An equitable mortgage in respect of an
immovable property may be created simply by deposit of original title documents e.g.
sale deed, allotment letter, etc., with the mortgagor. It is not required to be registered,
however, a general practice is to get a lien marked in respect of such mortgage.
3.8 Real Estate Taxation in Pakistan

3.8.1 Taxation of Gains from Real Estate in Pakistan

The Constitution excludes legislation on taxation of capital gains from the purview of the
federal government. The income tax law has also been harmonized with these
constitutional provisions by excluding the immovable property from the definition of
capital asset, whose gain is liable to tax. Despite this, profits on some transactions
concerning immovable property is taxable under the income tax law e.g. disposal of
property acquired as a stock in trade or with commercial intent to make profit.

3.8.2 Capital Value Tax on Real Estate Related Transactions in

Pakistan
A Capital value tax at the rate of 2 percent of recorded value has been levied vide Finance
Act, 2006. This is applicable in urban areas for residential property exceeding an area of
one kanal and in case of commercial properties without any threshold of land area or size
of the property. However, where the value of such property is not recorded, the CVT is
payable at Rs. 50 per square yard of land area. All transfers falling under the scope of
purchase, gift, exchange, surrender, power of attorney and relinquishing the rights have
been subjected to the capital value tax. However, transactions between spouses, parents,
grand parents, brothers and sisters through gift and inheritance have been excluded from
its purview.

3.8.3 Establishment of Real Estate Investment Trust in Pakistan

The concept of Real Estate Investment Trust has recently been introduced in Pakistan as
an incentive for real estate investment in Pakistan. Any income of such trust is exempted
from tax, subject to the condition that not less than 90 percent of its profit of the year is
distributed amongst the unit holders.
 4 PRESENT CHALLENGES TO REAL
ESTATE BUSINESS
Varied factors are associated with and changing the current state and pattern of
development of real estate growth. Physical aspects like variation in size of the
apartments, size of plots, price and rent of residences in different location and socio-
economic condition of the dwellers, land tenure ship pattern, car ownership pattern, level
of satisfaction of apartment owners with services provided by real estate developers,

4.1 Five common issues impacting real estate

4.1.1 Rising rates and the economy
Rising rates can actually be good – and bad – for the economy. the profile of interested
people feel bad when they saw increase costs. They’feel quite good when they monitor
business activity and keep inflation in check and balance . it has been perceived in today
environment “It may be painful in the short run but quite beneficial in strategic run . it
may have a slower number of new home purchases or resales, or higher mortgage rates
but inflation won’t get out of control.”

4.1.2 Politics and political uncertainty

research explained to attendees that the mid-term elections could change the balance of
power and with it, policy. “The 2018 elections are going to be telling because they’re
going to determine whether or not the policies of the current administration are going to
be maintained and many no longer benefit

4.1.3 Housing affordability

The group pointed to wage statistic, gentrification and a low supply of affordable homes
and apartments, plus two decades of housing underproduction that has dramatically
impacted the residential housing market. “The local control of housing decisions is
problematic,” audience have told . “Decision makers ... are dependent to voters and not to
the economics of the housing market and as a result, they don’t respond to what is
necessary from the perspective of housing that would be affordable and demanded by
families, etc."

Audiences were told that the solution is quite simple. “It’s a supply and demand
problem,”. "by substituting new technologies can increase the supply of housing, can
lower the pricing
4.1.4 Generational change and demographics
The organization advised that for the first time in more than 50 years, there are four
groups influencing both commercial and residential real estate: Millennials, Baby
Boomers, Gen X and Gen Y. On the rising tide of Millennial homeownership, Nahas said
“We have more people today under 40 influencing real estate. That affect has not been
fully felt yet. It’s going to take some time

4.1.5 E-commerce and logistics

Technology is continuing to disrupt, and how we are buying things change. The group
determine it may be a concern of retail sector volatility, including the rise of e-commerce
and logistics that have tendency to support warehousing and delivery of goods.

4.2 Issues to look out for in the future

4.2.1 Infrastructure
American Society of Civil Engineers, stating that there is a “lack of serious effort” by
the country to address its failing infrastructure. As old ways are obsolete new residential
housing developments require new infrastructure, such as water, power and sewer
services. The group also stressed that an absence of developed public transit hampers
development, creates congestion and ultimately increases costs.

4.2.2 Disruptive technology

it has been considered a current issue but has debated and determined that technology is
quickly and rapidly changing that it’s an evolution. The organization’s report notes that
the impact on residential areas include an increased demand for connectivity, smart
homes, and can cause older structures to be less desirable. the technology wild card is
block chain, which he said has potential to disrupt real estate in a significant way, in
different areas from transactions to titles.

4.2.3 Natural disasters and climate change

Despite all the data and press coverage, natural disasters are unpredictable and this plays
havoc on homeowners and developer and increases risk to homes, both single-family and
multifamily, the organization said.
4.2.4 Immigration
Immigration affects the skilled and unskilled labor pool, Additionally, immigration
impacts both residential and commercial real estate and affects both urban and suburban
areas,. Residentially, changes in immigration policy mean fewer new households, reduced
rental/owner demand, reduced broker transactions, the organization said in its report.

4.2.5 Energy and water

“Owners and developers and investors must consider what the state of energy and water
is when building,” Nahas said. Residential real estate is impacted as the cost to extend
utilities at the edge of urban areas increases,

4.2.6 Rise in land price

The major hurdle of providing affordable housing to all is the high value of land in city.
Land value in the city has drastically increased in last the decade with emerging
technology and better transportation showing about a four-fold increase in the average
land value in last ten years. In some of the critical areas of the city.The high land value
results in the high cost of housing units, for both purchase and rent. With the increase of
population the housing demand is also getting an upsurge, thus further increasing the
value of housing units. Consequently, the settlement area of the city is expanding and
people are getting more inclined at the outposts a result, the surrounding areas of the city
are also experiencing a rise in the land price.

4.2.7 Increasing cost of construction material

The housing problem of the city is further aggravated due to the price hike of
construction materials. The price of construction materials is consistently increasing,
thereby increasing the construction cost and apartment price.
Unplanned development of the city Unplanned development of the city creates challenges
for real estate developers to determine a suitable location for residential development.
Haphazard development of commercial land use in residential areas, deterioration of
transport facility and road network creates a continuous challenging situation for real
estate developers while providing housing facilities in those areas.
5 INFRASTRUCTURE DEVELOPMENT

5.1 HOUSING SECTOR

Infrastructure is the fundamental requirement in the functioning of any country. In
today’s modern era, electricity is needed to power homes and industry. Structured roads
a proper transportation system to transport goods from one place to the other and then
ports and airports to export industrial products to foreign trade partners. Similarly, a
modern nation requires effective water and sanitation to improve and sustain the health
and cleanliness of its people. In all situations, infrastructure is such a necessity that it
affects the lives of every single individual to a great extent on this planet without it life
cannot sustain. The improvement and expansion of infrastructure is a pre-requisite for
sustaining and accelerating economic stability , growth and social development in a
country. Improving quality and service coverage in power, water supply and sewerage
treatment, transport and logistics is crucial for Pakistan’s economy and to improve the
quality of life. To improve and expand infrastructure, Pakistan’s needs are massive to
strengthen the infrastructure requirements which are crucial for real estate. The
urbanisation and economic development are mutually interdependent.

 The housing sector plays a crucial role in economic growth and stabilization through
the creation of new jobs in construction and materials and demand for financial
services. The housing and construction industry has the potential of utilizing a large
number of skilled and unskilled workforce, significantly eliminating unemployment
and, thereby, reducing poverty in the country. attribute of housing, coupled with its
size and its multiplier effect on the economy, gives it the role of a leading indicator of
the imminent state of health of the economy at large

 Housing construction activity and productivity has been rising in Pakistan in recent
years from very low levels At 1% of the GDP, however, there’s tremendous potential
for growth, given a relatively stable and growing economy, a rapidly increasing
population, unmet housing demand, and a growing awareness of housing finance
options.

5.1.1 Housing Background

The housing crisis in Pakistan began after a hard-won freedom, and the ensuing flow of
refugees into the territories that became Pakistan. The government of Pakistan adopted
the welfare-state model as its development policy at the time of independence. According
to this model, the State undertook the responsibility to provide housing and shelter to its
citizens. Projects were launched in many cities of the country to provide basic housing
(one or two rooms, toilet and kitchen) for low-income groups and government
employees.
The largest housing initiatives were in Karachi where, through the Greater Karachi
Resettlement Plan of 1958, the government aimed at providing 500,000 housing units in
15-20 years. The State developed the physical infrastructure, while people bought the
plots of land and built their houses themselves. The government introduced various
schemes on this concept in all the major cities of Pakistan. A certain percentage of the
plots were of a small size and ostensibly meant for poor families. Pakistan also adopted
green revolution technologies in the agricultural sector and also opted for large-scale
industrialization. As a result of these two factors, there was an immense rural-urban
migration.

The urban growth rate increased to 4.8 percent during 1951-1961 and 4.8 percent during
1961-1971. As a result, 10.58 million people were added to the urban areas of Pakistan in
a period of 20 years. In Karachi, more than 38 per cent of the increase in the population
in the period 1981-1998 was estimated to have been because of the migration. Lahore and
Peshawar had similar situations. The proportion of migrants from other provinces is
significant in Sindh while, in Punjab and NWFP, shifting to urban areas takes place
mostly from within the province.

5.1.2 Housing Indicators

The state of housing in a country or city is identified by various indicators. The most
important indicator is the demand-supply gap. Demand is the number of housing units
required as a result of an increase in population where this increase can be due to
migration as well as natural population growth. Supply is the number of housing units
that are provided through State-approved processes and policies . The demand-supply gap
is the difference between the two. If the gap is large, housing conditions are bound to be
poor. Backlog is another indicator and means that the required number of housing units
has not been built. Other indicators are rooms per house (the less the number of rooms,
the worse the housing conditions) and the number of persons per room (the larger the
number of dwellers, the poorer the housing conditions). Other indicators include the
availability of water, sanitation, electricity, and the quality of construction, especially
roofs.

5.1.3 Housing conditions

An increase in average household size indicates more people per housing unit in 1998 as
compared with 1981.. Despite an increase in persons per housing unit, rooms per housing
unit has increased slightly during 1981-1998 from 3.2 to 2.9 and 3.6 to 3.2, respectively,
that caused a decline in persons per rooms. It therefore means that congestion has
reduced. The most dramatic change has taken place in electricity supply. Nearly 28
percent housing units have inside water and 70 percent are covered by electricity in 1998,
as compared with 13 percent and 30 percent, respectively, in 1981. However, piped water
in rural areas is available to only 13 percent households and 69 percent households in the
rural areas have no latrines. Even in urban areas, only 51 percent households have latrines
and 60 percent have piped water in their homes.
5.1.4 Housing Construction

Internationally, the construction industry is considered as one of the major industries

contributing to the Gross Domestic Product (GDP) in developed countries. The
construction sector is directly linked with employment. There are both formal and
informal building firms, who undertake works. In the period 1985-90, this sector
contributed more than 5.55% in GDP. It is estimated that about 1.77 million man/ year in
1994/95 (according to Fourth Five year plan) were engaged in this sector . It is also a
source of employment for millions of people the world over. The total worldwide
spending on construction in a year is about $3.2 trillion, with Pakistan's contribution
being $5.2 billion. Construction activity has been increasing in recent years, mostly in the
upper end of the market. Even though the general macro-economic conditions appear
quite conducive to the general development of the housing sector; housing finance has
not emerged as a dominant option yet, and this has reduced the construction industry’s
growth International Developers and large state and private developers remain significant
bidders for housing projects, but the smaller builders are ignored, owing to increased
construction costs and the difficulty in accessing sufficent finance.. The cost of
construction has also been rising regularly, despite governmental efforts to bring down
the prices of essential inputs.

A positive step taken by the government has been the formulation of the National
Housing Policy and the measures taken to implement it. The objective of the policy is to
create affordability of owning a housing unit, especially for the middle- and low-income
groups in both urban and rural parts of the country.

5.1.5 Corporative housing system in pakistan

When Pakistan was created in August 1947, housing was a major problem for millions of
people. Independence had created a large influx of migration into the new state. As the
state was unable to provide adequate housing for its population, squatter settlements soon
appeared and were largely tolerated by government. Industrialization and urbanization
accentuated the situation. Refugees and rural migration contributed to the growing
number of urban poor. Housing co-operatives in Pakistan are developed under the
township model where large pieces of land are provided by the state to the housing co-
operatives or the Union. The housing co-operatives or the Union carve out plots, develop
the land and lease the land to the members. Commodities development such as water and
roads are undertaken by the Province/City Development Authority or by the Union for
which the housing co-operatives have paid a fee. Commercial buildings are also
constructed. The size of housing cooperatives varies according to the land available.

Housing co-operatives members are tenant owners. When the land development is
completed, the allotment is handed over to the individual member upon payment. The
individual member builds the house themselves following the co-operative laws and
relevant regulations. Members continue to pay nominal renting fees to the Union.
 Housing co-operatives had had a modest start. In the province of Sindh there were 46
housing co-operatives located in Karachi (22), Hyderabad (23) and Sukkur (1). In
1949, the Karachi Co-operative Housing Societies Union was founded as a central co-
operative organisation by 24 primary housing co-operatives. Co-operators took the
responsibility of developing much needed housing

 In the province of Punjab, housing was the responsibility of the government through
Urban and Housing Development and several trust organisations (LIT, RIT, etc.) until
the 1970s at which time, commercial and co-operative developers started to do
business.

 Even though co-operatives were introduced in the province of Baluchistan in 1950,

no substantive development of co-operatives was made until 1955 when a small
amount of financial assistance was provided with the Aid Program.

 Housing co-operatives have also developed in the North West Frontier Province as
indicated in the statistics section below. In the Capital Territory of Islamabad, there
are different types of cooperatives but unfortunately there is no indication of the
number of housing co-operatives.

5.1.5.1 Famous Corporative Societies Functioning For Betterment Of

Real Estate Business In Pakistan

DHA (Defense Housing Authority)

DHA society is basically for Army officers and it is built by Pakistan Army. The houses
are well developed, modern and high standard. For the people who want modern and
expensive living, DHA scheme is the best option. It has major projects in Karachi, Lahore
and Islamabad. It has lots of parks and markets.

Askari Housing Scheme

Security, proper planning and excellent setup, all comes in one. It was first society built
for retired Army officers, but due to its best security system, it is regarded as one of the
best societies of Pakistan, as security is main issue now days. It has its projects at Lahore
and Rawalpindi

Bahria Town
It is the most successful housing project in Pakistan with it centers at Karachi, Lahore,
Islamabad and ongoing projects at Hyderabad, Faisalabad, Sukkhur, Nawab shah and
Peshawar. The success lies in the fact, that it is a perfect blend of traditional and latest
amenities. Malik Riaz has given a luxurious lifestyle with a peaceful environment, which
is none other than Bahria town.
WAPDA Employees Cooperative Housing Society
It has its centers in Lahore, Multan and Gujranwala. It is a well-developed society with
lots of facilities in it.
5.2 COMERCIAL SECTOR
Future of commercial sector is boom. There is a great demand for office building in
Pakistan Cumulative demand for office space in Pakistan between 2008-2018 is estimated
to be in excess of 85 million sq ft. This represent annual growth rate of 14.5% over the
next 3 years or approx.20 million sq ft/year and approx 80% of demand is created by IT
and telecommunication sector. Retail is considered the world largest private industry with
total sales of over US $ 6.6 trillion with close to 12 million outlets. developing countries
like Pakistan has the largest retail density in the world .It is estimated that presently
additional 46 million square feet for malls, multiplex is being added in India out of which
32 million sq ft is spread over across 7 major cities

5.2.1 Spiraling land prices

The land prices have really shot up in the last 2-3 years. Builders continue to get enough
buyers for whatever prices they quote. Now, that is a very strange thing when seen in the
open market perspective. pakistan a very price-sensitive market. Whatever you sell you
have to give the consumer a good value for money cosumer satisfaction is an important
determinant. So, when such people make a beeline for things priced exorbitantly, there
may be large amounts of speculative investment money entering the market. Also, people
now assume that property prices moving up is a sure thing

5.2.3 Relation to the stock market

The true origin of this bubble-like situation may be traced to the stock market boom. The
Pakistani stock market has been witnessing a strategic boom. During the last couple of
years, share prices have surpassed all expectations. The present situation can be
compared to Japan's real estate crash in 1991. Prior to the crash, both the stock market
and the property market were on fire. Profits from the stock markets used to be
transferred to the property market and vice versa.

5.2.4 Questioning the capability to deliver

Although there have been huge plans of development in all the areas of real estate
development whether residential, commercial, office, retail or SEZ, various questions
have been raised on the execution capability of the developers in delivering the promised
product within the specified time period .real estate business occupy market dominance
to a greater extent giving privilege to opportunity seekers
 1 THE FUTURE OF THE REAL ESTATE
INDUSTRY

Real estate business has been a unique source of safe investments all over the world
where supply and demand are synchronizing in a homogeneous formula leading for
successive actions of business development. In Egypt, visualizing the increasing number
of population with escalating growth rates and urbanization rapid development all had
created a kind of massive demand on real estate products with particular emphasis on
housing opportunities over the past four decades. This phenomena still elaborates on the
crucial importance and vitality of the real estate business, and is expected to sustain such
a kind of business for the coming eras. Yet, establishing and running a successful real
estate business is dependent upon realistic and careful market research,tools and
processes, where hedging a consolidated position in the market would be needed. The
conclusive data aims at highlighting and synthesizing the primary market forces that
would be of value towards establishing and running a sustainable real estate business, and
further to improve the product mix over time and region

Real estate brokerage is a highly competitive business, and service and cooperation are
essential parts of doing business, but there are risks involved with costly
consequences. The real estate industry is facing disruption, and not just on one front. New
real estate brokerages are offering an alternative to the way agents do business, tech
startups are providing more information and ease of access to consumers and
professionals, and companies are helping consumers bypass the need for a real estate
agent altogether

6.1 INCREASED COMPETITION

According to the Macquarie Residential Real Estate Benchmarking Report, increased
competition has led to a steady fall in real estate commissions across asia. New market
entrants who are leveraging technology and offering tiered pricing models are putting
pressure on traditional agencies. One such example is the emergence of fixed fee real
estate agencies in recent years. By increasing their efficiencies and reducing their
overheads, they’re able to cut costs and offer lower fees.
To combat this, traditional agencies must introduce new technology to automate tedious
tasks and offer a superior customer experience as a point of difference i.e. property
management software. Additionally, agencies must look towards diversifying their
revenue streams to boost profitability in the long-run.

6.2 DATA AND SERVICE

Data continues to take on a more important role for consumers, who are looking for
transparency in the market and for hard numbers to help ensure their decision to buy or
sell a home is the right one Since then, transparency and the availability of information
has become vital and useful to the homebuying process, evidenced by the rise of popular
real estate information sites like Zillow and Trulia, which offer consumers free access to
information about houses on the market, potential home values and recent sales both
serving homegenous and hetrogenous characterstics of potentional buyers. today a major
role of real estate agents has been to provide all necessary and relevant information that
wasn’t available to individual buyers and sellers, such as median sale price, the number
of homes for sale and details about individual properties
top Executives, preparing for the future of real estate has been focused on remaining in
step with the newest technological advances, including maintaining website that's
dynamic for home users including interactive maps, easy-to-access analytics and user-
friendly listing details and keeping up with blockchain technology and avilable options

6.3 MILLENNIAL WILL KEEP BUYING HOMES

DESPITE RISING RATES.

"The housing market in 2019 will be characterized by continued rising mortgage rates
and surging millennial demand. Rising rates, by making housing less affordable, will
likely deter certain potential homebuyers from the market. On the other hand, the largest
cohort of millennial will be turning 29 next year, entering peak household formation and
home-buying age, and contributing to the increase in first-time buyer demand
Millennial will continue to make up the largest segment of buyers next year, accounting
for 45% of mortgages, compared to 17% of Boomers, and 37% of generals. While first-
time buyers will struggle next year, older Millennial move-up buyers will have more
options in the mid-to upper-tier price point and will make up the majority of Millennial
who close in 2019. Looking forward, 2020 is expected to be the Millennial are also likely
to make up the largest share of home buyers for the next decade as their housing needs

6.4 TRANSACTIONS
It’s not just the way people pay for a house that may change – it's the basics of the
transaction itself. Agents will need to step up their knowledge in these areas and be able
to walk buyers and sellers through each process. Consumers will also need to understand
new buying and selling options offered by iBuyers – companies such as Opendoor,
OfferPad and Zillow Instant Offers that are able to purchase properties with cash on a
large scale and flip them for a profit. That means homeowners will likely receive an offer
for less than they could get if they listed their property with an agent, made
improvements to the home and marketed the home to the public.

PROSPECTS IN PAKISTAN
According to Pakistan’s Bureau of Statistics, the national construction output accounts for
around two per cent of country’s Gross Domestic Product (GDP), with housing
representing less than half that total. It is worth quoting here a report carried on its
website by the largest Pakistani and Asian private real estate company, Messrs Bahria
Town, which enjoys services of around 60,000 employees and has revenues of $10 billion
(2015), besides having an asset base of $20 billion (2015).

The real estate sector – constituting housing, construction, retailing, hoteling, and renting
of spaces for official or trading purposes1 – has gradually evolved into an important
source of economic growth in Pakistan. The combined direct contribution of construction
and housing sectors (the latter of which is a part of the services sector in the national
accounts) to the country’s GDP has been consistently higher than 9 percent over the past
decade; whereas, a steady expansion in wholesale & retail trade activities in the country
has kept the buoyancy in commercial real estate intact. Spillover effects are also strong as
evidenced by the sustained increase in activities of a large number of vertically integrated
sectors (such as cement, steel, wood, cables, ceramics, etc.) with flourishing real estate
sector. While evaluating the macroeconomic relevance of the real estate development, the
social dimension of the sector cannot be ignored. Pakistan’s housing deficit is estimated
to be around 9 million units;2 this means that more than a third of the 32 million
households in Pakistan are not provided with adequate housing. Market frictions such as
non-availability of a common record of land and entitlement, and stringent regulations for
site development, are responsible for the limited progress.

Real estate investments are the most important form of investments for long-term returns.
Residents all over the country are now gradually transitioning from living as tenants to
real-time homeowners. With globalization and urbanization at its peak, residents are
quick to seize out on to profitable opportunities for a fulfilling future and life style. For
the past few years, the property investment markets haven’t been performing for quite a
few reasons. However, after the introduction of RERA (Real estate regulatory authority)
and GST, the demand for affordable homes has rapidly increased. Realtors have now
devised strategic plans to cater residential expectations and to introduce with affordable
housing options to push unsold inventory. This, therefore, establishes long-lasting
relationships with key clients for future business prospects

Pakistan is quite a part of the nearly global boom of the Real Estate market. The prices
have been rising steadily for quite some time now. The property in prime locations of
cities like Karachi, Lahore, and Islamabad is in high demand among both realtors and
consumers. The prices of such properties are already reaching into the above million US
dollars range. The prices have gone up so rapidly that they are nearly five times of what
they used to be around a few years ago. There are numerous housing societies that are
being constructed on the outskirts of many major cities. Most of them are being targeted
at the upper end of the market with prices in hundred-thousand ranges. Owners are not
selling these properties and when the selling spree begins the prices are going to drop.
Even residential consumers who own the property are simply not selling it anymore and
are waiting for the prices to go even higher to have profitable return in order to opt new
investing opportunities in real estate.

Considering the state of the market many people are considering this the best time to
invest in Pakistan Real Estate. There are many realtors and firms that are busy buying
projects that are going to take years to complete. This will be a rapid reversal of the
current trend and bring an end to the Real Estate boom going on in Pakistan today.
Another point is that in their interest to invest in Real Estate many people are resorting to
home loans but a steady increase in the interest rate is causing a good proportion of them
to default on their loan. government have made homebuyers and developers anxious. The
government’s economic and employment policies will serve as the key drivers to growth
in the real estate sector . The last two years were not the best for the Pakistan realty
market, and the slowdown impacted all asset classes, except in a few pockets. Revival is
no doubt the need of the hour. There is a sense of hope among developers for a positive
post-poll scenario. So far, none of the campaigns have outlined a comprehensive proposal
for recovery of the real estate market — specifically in terms of providing more housing
and managing interest rates the property market is a key election financier facilitator ,
and considerable amounts of unaccounted money are being pumped out from the real
estate sector to fund the elections. Before the polls, developers are expected to provide
liquidity to politicians so as to finance their campaigns.
Many developers who are funding possible candidates are delaying their projects due to
the lack of liquidity.. Reduced housing absorption has adversely impacted developers’
liquidity and in turn, their funding ability. Political commentators note that certain
properties are sold below market rates in order to generate cash for the election
campaigns. Given this situation, many developers cut down on new launches and focus
solely on selling the existing inventory Many assume that property prices will shoot up
post elections, but this expectation in unfounded as there are too many factors at play,
regardless of which party wins. Election results do not make or break a market, but they
do affect market sentiments to a significant degree.. A decisive win for any of the
alliances will uplift homebuyer sentiment and the property market will see a return of
buyer demand due to the reinstatement of confidence., if the road to recovery is
unhindered, property buyers may very well re-enter the market in good numbers.

Initiatives have a tendency to boost pricing of residential property in the immediate

vicinity. The manifesto of one of the parties in the electoral fray mentions several
initiatives in the infrastructure space, with an intended spend and spending $1 trillion on
upgrading infrastructure over the next decade. It also commits to significant expansion of
and improvement in the Pakistan Railway network, including covering a million plus
cities by high-speed rail. The manifesto also mentions upgrading the infrastructure of the
port sector, developing inland waterways to strengthen infrastructure and encouraging
public private partnership for the creation of world-class airports. The key factors
currently at play on the real estate are unsold inventory, absorption and interest rates. It is
unlikely that these factors will change immediately post polls, regardless of which party
wins. Over the longer term, what will matter most to the real estate sector are a hard
retook at foreign direct investment (FDI) in housing, real estate investment trust (REIT)
legislations and the effective implementation of real estate (Regulation and Development)
Bill. The state Bank will pay a key role in the post-election scenario, be it in bringing
down interest rates for home purchase, or allowing flexibility to reintroduce subvention
schemes, or restructuring debt for debt-ridden developers. The state bank role in deciding
whether to ease lending rates in order to make it easier for more people to qualify for a
loan — and magnitude of down payment needed to buy a home — will also impact the
real estate market better vision on infrastructure will help make the market more
opportunistic New

Undoubtedly, a new stable government will boost businesses and ignite investor
confidence. However, the real impact of any changes will not reflect in the economy for
at least another one year, and the effectiveness of any new initiative is something only the
future can tell. A combination of bottomed-out property prices, low interest rates and a
return of buyer confidence can create the perfect environment for recovery — and even a
bull run. If the incoming government is able to keep interest rates low and employment
generation high, it will provide the platform for a far more stable and investment-friendly
real estate market.
 6 REAL ESTATE IMPACT ON
ENVIORMENT

Environmental factors are largely responsible for the value of property. Man's attitude
towards the surrounding environment is not neutral because humans are in search for
locations that deliver a high quality and gratitude of life. Those expectations particularly
concern man's daily surroundings, including residential areas, commercialization or
recreational grounds. The quality of that environment largely affects the decisions made
on the real estate market. This factor influences the value of property, and its social
popularity generates economic benefits.

6.1 PHYSICAL FACTORS IN REAL ESTATE

Physical factors of a property are important because they can be the driving factor behind
a community’s economy. For example, a prime location would be expected to develop
industries related to shipping. Physical factors can determine whether a location is
feasible for development at all based on the soil conditions and topography. They can also
drive the market demand for specific types of real estate development in the location.
Physical factors important to real estate market analysis may include:

7.1.1 Location
Define the property boundaries and consider the neighboring properties as well. How
does this location fit in with the surrounding properties? Is the property being used in a
way that makes financial sense given the surrounding property types and property mix?
Do the neighboring properties add value to the location or not?

7.1.2 Natural geographic boundaries

Some properties have natural geographic boundaries such as rivers, lakes, and oceans.
While these natural boundaries limit the availability of land for development, they can
also add value to neighboring properties if utilized appropriately. So, the market analysis
should consider the impact on development options and value drivers for the subject due
to the natural geographic boundaries.

7.1.3 Topography
The topography of an area can have a immense impact on real estate development and
can be a crucial factor in a market analysis. Topography can influence issues such as
runoff and flooding hazards as well as availability of land for development. Areas in the
Mid-west have large, flat plots of land that would be easy to develop. On the other hand,
areas on the west coast have a limited amount of land along the coast that can be
developed. California has little flat ground between the Pacific Ocean and the mountains,
so people are forced to develop into the sides of mountains.

7.1.4 Climate
To a certain extent, climate is important in any market analysis. Climate may be directly
relevant to income if the subject property is a resort or entertainment facility. Climate,
however, is also important to understanding the demand for real estate and economic
drivers of an area. Locations with warmer weather and mild winters tend to attract people
and businesses and masses Therefore, population and economic growth tend to be higher
in these areas.

7.1.5 Natural resources

 Historically, cities grew in locations with important natural resources. Today, natural
resources are still major economic drivers of industry and employment opportunities.
Natural resources can serve as an important economic factor for transportation (rivers or
seaports), mining (natural gas, coal, oil, etc.), or tourism (beaches and mountains).

6.2 ENVIRONMENTAL FACTORS IN REAL

ESTATE ANALYSIS
Environmental factors refer to the interaction between people and urban development
with the natural environment and resources. Every piece of real estate development
impacts the environment in some way because development changes the natural
interaction among land, water, and animals. In many cases, development occurs
specifically because people desire to utilize the natural environmental resources of a
location. A market analysis should consider the property’s interaction with and impact on
the surrounding natural environment to the extent it will influence the project’s feasibility
and value. The overall impact on the environment is usually proportional to the size of
the development, but there may be other considerations due to the specific location or
proposed use of the property.

A few of the environmental factors that a real estate market analysis may consider
include:

7.2.1 Air and water quality

The quality of air and water can have a huge impact on property valuation. Cities with
poor air quality or poor water quality are less desirable and may over the longer-term
experience decline in population and valuation. Areas with clean air and water are highly
desirable, and as a result, those areas may experience higher than average growth in
population and value in the future. Of course, that growth also comes at a price, and the
quality of the environment must be protected. As a result, local governments may require
stringent permitting procedures for large real estate development that could negatively
impact the natural environment.

7.2.2 Soil conditions

The soil present on a particular property can have a varying degree of impact on the value
and suitability for development. The property’s soil classification is important because it
has potentially huge implications to the cost and feasibility of future use and
development. Issues related to soil classification are important because they determine
the hydrology, the soil’s interaction with water, of the land. If the soil does not allow for
adequate drainage, additional measures may need to be implemented to properly account
for runoff and erosion due to rainfall. Soil classification can also determine whether or
not the land has the ability to hold the weight of a structure without slipping or cracking

7.2.2 Wildlife

All real estate development impacts the area wildlife in some way. The impact may be
something small related to cutting down trees in which birds and insects lived. On the
other hand, real estate development may impact some type of endangered or protected
plants and animals. In these cases, development may be prohibited entirely. The market
analysis may need to consider the potential impact on surrounding wildlife and the cost
associated with remediation efforts (such as a detailed environmental analysis report or
purchase of redevelopment credits in another location).

7.2.3 Wetlands

Soil that is covered by water all or part of the time may be classified as wetlands. There
are wetlands areas located throughout the country, and they are important to the local
ecology because they protect and improve water quality, store floodwaters, maintain
surface water flow during dry seasons, and provide habitats for fish and wildlife.
Development in wetlands areas may be limited by state regulators and the Environmental
Protection Agency (EPA).

In some wetlands areas, development may not be feasible at all due to the continual
presence of water. Real estate projects located in or near wetlands areas should consider
the potential costs of preparing the land for development along with the purchase or
restoration credits.

7.2.4 EVALUATION OF ENVIRONMENTAL FACTORS

From the perspective of economic theory, the environment is a unique resource which
delivers an economically utilitarian function for the society. In the above approach, the
environment is defined as a set of material (physical and biotic) and non-material
elements – objects, forces and phenomena that create a mutually interconnected and
dynamic system in spatially limited territory. Man's relationship with that system is one
of interdependence. The system creates non-material living conditions for humans by
catering to the biological and social needs that have been shaped throughout evolution.
One of man's basic needs is an environment characterized by high living standards,
security and a high scenic value. The environment can also be defined as a set of natural
elements, in particular land features, soil, fossils, water, air, flora, fauna, natural and man-
made landscape

7.2.4.1 External Environment

Commercial which ranks next only to food and clothing amongst basic human utility
needs has always had and continues to have important socio-economic implications.
Especially in countries like Pakistan which are in the throes of rapid development
housing has come to assume a crucial role as it contributes significantly to the national
economy and nation building.
Housing and GDP are interlinked and contribute to each others’ growth. It is, therefore,
no wonder that ‘Housing for All’ is invariably proclaimed as a national priority by all
major political parties and adopted as a goal by the government Integrated housing
development not only satisfy the basic human needs but also facilitates holistic
development within the parameters of a planned welfare economy. Safe, secure and
affordable housing by any means increases employment and educational opportunities for
individuals and enriches communities leading to a better civil society and better quality
of life. Besides the direct contribution which housing makes to GDP it increases social
capital which is intelligible wealth that comes with good social network at the heart of
which lies clean environment, hygienic living and quality housing.

Coupled with the demand for dwelling units, another major factor which has contributed
to the buoyancy of Housing activity is the affordability of properties. This, in turn, has
been the result of a combined effect of stabilized property prices, higher level of incomes
and lower cost of borrowings. In fact the boom witnessed by the Housing Finance sector
can be heavily attributed to these factors. Housing has often been called the “Engine Of
Domestic Growth” of the Economy. An investment in Housing and construction triggers
of a series of investments in various sectors.
From Heavy Industries like Steel, Cement to industries like Paint, Furniture’s and even to
Small Scale Industries, Housing affects as many as 269 industries directly and indirectly

Housing ranks fourth in terms of the multiplier effect on the Economy, ahead of sectors
like transport and agriculture Perhaps the greatest socio-economic impact of Housing is
in employment generation. Housing is the second largest employment generator in the
country after Agriculture. A host of vocations and professions derive their livelihoods
from Housing, either 25 25 directly or indirectly. Construction workers, builders,
developers, suppliers, civil engineers, valuers, property consultants, furnishers, interior
decorators, plumbers – the list is virtually unending. In a developing nation like ours,
Housing can be the solution to the most nagging problem that any Government faces –
that of employment. Apart from these various indirect benefits that the economy derives
from Housing, the Government itself is a direct beneficiary in terms of collection of
stamp duty rising out of acquisition of real estate assets.

7.2.4.2 Internal Environment

The trade and industry was fairly to blame in the 80’s when there were not many
professionals in the building trade. It is still one of the largest unorganised sector in the
country, but slowly companies deeply committed to housing are becoming more
responsible, accountable and transparent. Like other industries, real estate developers are
also processors and producers of goods (i.e. the home) which is a tangible product and
has enormous cost from concept to completion. It is impossible for any developer firm to
bear the entire cost, hence the need for real estate financing. The customer preferences
have moved away from under construction to nearing completion or completed projects
and hence the investments in the projects have changed.

Strangely other industries get financed by the same financiers for process as well as end
product (i.e. the automobile industry). The banks and Financial Institutions have 27 27
exposure to the producers and the purchaser but when it comes to developers the very
same Financial Institution shy away.

7.3 ENVIRONMENTAL IMPACT AND

SUSTAINABILITY IN REAL ESTATE

 State law as part of a real estate development project may require environmental
impact studies. The actual regulations and requirements differ by state, but may
include anything from an analysis of additional traffic conditions on roadways to the
impact on native plant and wildlife. Environmental impact considerations include
both the construction phase and the completed project.

 The regulations and requirements of the environmental impact study are important in
a real estate market analysis because of the feasibility implications. The cost of
complying with environmental regulations may make construction or renovation
plans too expensive to pursue. Alternatively, compliance with environmental
regulations could make a proposed use of existing construction so expensive or
restrictive that the project is no longer financially feasible. The market analysis
should address issues related to environmental impact, the potential costs up-front and
over the expected holding period, and any influence environmental factors may have
on expected cash flows from the property.

 Sustainability is an increasingly important concept in global real estate development.

Rather than focusing simply on direct environmental impact to the property and
immediate surrounding area, sustainability considers the impact of development on
the larger regional and global environment as well as human interaction with the
construction. More than simply the impact of traffic or development on local air,
water, or wildlife, sustainability considers the impact of building materials from their
sourcing to final use. Sustainability focuses on the use of renewable, local building
materials and healthier environments for living and working.

 Issues of sustainability matter for market analysis because they influence the cost,
risk, marketability, and value of the property. Although the initial cost of construction
and development can be slightly higher, there are many long-term benefits as well.
 Those benefits include lower risk premiums and lower operating costs. The
desirability of and demand for sustainable real estate development in the market also
allows these properties to charge a rent premium and command a price premium in
the marketplace. As the demand for sustainability in the market grows, these
properties may experience higher than average growth rates, lower vacancy rates, and
lower overall operating expense ratios. All of these factors then
influence Performa cash flow expectations and property valuations.

8 TECHNOLOGY IMPACT ON REAL

ESTATE

Real estate has always been an industry dependent on technological developments.

Technology offers a user-friendly experience when showing homes. .elevated
photography has been doable using airplanes and helicopters, it was costly. Drones make
elevated imagery both possible and affordable. Not only is technology changing the way
agents sell homes, it’s changing the way agents sell themselves! Advertising and
marketing is much easier and efficient when done online. When websites are created as
mobile-friendly, it’s effortless to get your browser in a customers hand. With that being
said, clients do expect increased access to their agents and brokers. In this day and age,
agents cannot afford to be careless with their communication. Agents who don’t respond
quickly to online leads will end up losing them. Technology touches every aspect of the
real estate industry today. Buyers can see a birds-eye view of a neighborhood 2,000 miles
away through drone footage. You can buy a house online without ever taking out a pen to
sign a contract. Searching for new listings is as simple as downloading an app, choosing
your location, and awaiting notifications with options.
Technology acts as a catalyst for change in all areas of business and industry, and the real
estate market is no exception. Today’s worker is more mobile and more connected than
ever before, which means that businesses can operate anywhere. Especially in mature
urban centres, the pushback against escalating real estate leasing and ownership costs is
escalating. While telecommuting may not be a viable option for all companies, or even all
employees within a company, many organizations have utilized remote work models with
great success. This is reducing the amount of office space needed to accommodate
employees, and it is changing the dynamics of what constitutes an ideal - read expensive -
location.

Technology as driving force in real estate industry

Web based technology an optimistic approach to success in

future real estate business
These are some of the top tech developments giving a considerable boom

8.1 Buying And selling platforms.

Today fantastic advancements in the approachability and functionality of real estate

buying and selling platforms. The basic idea is to make buying and selling properties
easier and more in reach to the greatest number of people. With easier platforms to
navigate, more homeowners will be able to get their houses to market quickly, and more
home buyers will be able to find what they're looking for quickly; overall, that's going to
result in more market activity and better experiences for everyone involved. If you're
selling your home in 2019, you may be able to bypass the need for an agent by using one
of these platforms.

8.2 Big data

big data is a large amount of data that’s analyzed via algorithms and flow charts to make
predictions about purchase behavior and intent, based on past patterns, trends and
associations. Hence why it’s proved to be the lifeblood of companies like Amazon, Face
book, Uber and Netflix. Big data is how Amazon knows what you want, even before you
know it yourself In the real estate realm, this might mean using a CRM or suite of
products that knows when a lead visits your website or listing and collects data on what
they’re doing on that page.
8.3 The block chain

Block chain technology has gotten considrable attention for its potential to support crypto
currency, but in 2019, it may be applied to the real estate world. The possibilities are
practically limitless; concept of tokenization, landlords could use the block chain to sell
portions of ownership in their properties. Real estate contracts between buyers and sellers
could be done with complete encryption and correct built-in legitimacy checks. Even
property titles could be more securely and more conveniently stored, thanks to block
chain ledgers. Block chain makes it possible for people and companies to process major
transactions without going through intermediaries like credit card companies, banks, or
governments.

8.4 Virtual walkthroughs

Virtual reality has been making headlines in practically every industry, but it could really
start taking off for real estate in 2019 and beyond. One of the most important steps of
buying a property or becoming a tenant somewhere at any location is viewing the
property, required details inside and out--but this can prove difficult if you're moving to a
distant city, or if you're otherwise unavailable during normal viewing hours. Virtual
reality (VR) could easily allow prospective tenants and homebuyers to walk through
properties before buying, and it's going to become more popular and more common in the
next few years.

8.5 Machine learning and ROI calculation.

Property investors and real estate agents need to know that they're spending their time
well, and new technology may be able to help them do it. Thanks to the prevalence of big
data and machine learning algorithms, real estate professionals will gain more knowledge
about the ROI of each of their (and their clients') transactions. For example, real estate
agents will be able to make more accurate predictions for what properties will sell for,
how much money their clients will be able to make, and how much they'll get in
commissions. These algorithms can also be used to spot better real estate deals, leading to
smarter investments.

8.6 Real estate robots

The modern consumer expects immediacy and prefer quick and direct response They
want answers to their questions and they want them now. That’s where real estate robots
like chatbots, voice bots and virtual assistants come in. Not only can they help answer
consumer queries with little to no delay to keep consumer expectations at bay, but they
can also free up your time to focus on what really matters. Chatbots such as Holmes,
ChatFuel and CRIBZ (targeted toward millennials looking for property) trigger messages
based on certain actions or keywords to provide timely assistance. They can be found
popular social media platforms like Facebook and on many websites

8.7 Enhanced mobility

That’s why it’s become the norm for CRMs like Rex and property management software
systems like PropertyMe to have a smartphone app so that agents have access their
contacts, property data and tools from anywhere, at any desirable time. This not only
saves downtime but also allows easy collaboration from the road. You could be
conducting an open home in the morning then driving to an inspection in the afternoon
and have everything you need to manage your properties in the palm of your hand. Just
check out how this property manager conducted end of month at an open home.

8.8 CRM software

Software like Salesforce, PipeDrive, Base, and countless other CRM for real estate help
agents keep track of emails, calls, and the progress you’ve made with your prospects. You
can get a clear sense of your pipeline, and quickly identify the areas where you need to
take action. Once a deal has been won or lost, you can easily report on results and use
that data to forecast revenue.

8.9 Fractional property investment platforms

Fractional property investment platforms allow investors to buy a portion or “fraction” of

a property or share. These investors collectively “own” the property and can benefit from
a share of rental income or capital returns in the event that the property is sold. A few
examples of fractional property investment platforms in Australia include BRICKX,
DomaCom and the newly launched CoVESTA.

8.10 Automation
Automation is another real estate tech commonly used. From online chat (cue real estate
robots) to social media and emails to property accounting and invoice processing, there
are so many real estate tasks that can now be automated. In order to remain competitive,
you need to leverage real estate technology to your advantage to automate predictable
communication and administrative tasks such as data processing and collection. This will
free you up to further your skills in communication, management and decision making to
grow your business.

8.11 Construction Technology

Proceeding from an economically necessary view of the entire property life cycle,
Construction Technology has the potential to automatically become the focus of interest.
The global construction industry is booming and there is a need for technological
advancement with the current explosion in construction cost. Construction is pushing the
boundaries of 3D concrete printing and as a result, is driving this change in the
Construction industry. These technological advancements will not only make the industry
cost-effective but also sustainable catering the buyers in pro efficient way

8.12 Geolocations
Geolocation technology transforms simple maps into full sets of critical data about real
estate and properties. It can not only pinpoint where buyers are in the traditional sales
cycle by utilizing predictive analytic technologies but can also pinpoint their physical
location. It enables real estate developers to make far more accurate valuations based on
economic strategies. Further, geolocation technology plays a very crucial role in real
estate marketing and has the capacity to change how properties are marketed and traded.
geothinQ visualizes property data, county maps, topography, flood zone maps, soils and
more in order to analyze the value of land. It provides more accurate access to parcel data
that accelerates risk versus reward analysis for land acquisition, land use planning and
land development and therefore enables smarter decision making

8.13 Internet of Things (IoT)

IoT can be described as items and structures equipped with sensors that internet
applications can read and can translate into usable digital data. IoT can improve both the
real estate industry and individuals everyday lives by its varied application from
predictive maintenance to accelerated decision making to increased energy efficiency to
count a few.

8.13.1 Residential
MLS- One of the older platforms, the MLS is a way to explore to find real estate listings
for sale by Realtors and other realty professionals that are members of your local MLS
Multiple Listing Service. Each local area has its own MLS which you will need to
register to see available product in the market.
Zillow- This site has, in a way, revolutionized listings for residential property. You are
able to search for available homes throughout the nation, look up recent sales comps, and
see old reports such as when the home was last purchased etc. This is a great site for
those looking to purchase a home in an area, or for investors looking to find information
on the surrounding neighborhood.

Trulia- Trulia is an online residential real estate site for home buyers, sellers, renters and
real estate professionals in the United States. It lists properties for sale and rent as well as
tools and information needed in the home search process

Zillow and Trulia were merged in 2014, However, the two sites remained separate:
Zillow focuses on “the full lifecycle of owning and living in a home: buying, selling,
renting, financing, remodeling and more,” while Trulia retains a narrower focus on the
home-search process. Both companies are interested in connecting real estate industry
professionals with consumers and define themselves as “primarily media companies,
generating the majority of revenue through advertising sales to real estate professionals.”

8.13.2 Commercial
Costar- A research platform which is pretty much the one and only platform for
commercial real estate brokers, investors and developers. Costar creates opportunity
through a combination of reliable tools, resources, and deep understanding on over 5
million commercial real estate properties in today’s market.

The Analyst Pro- What claims to be the swiss army knife of commercial investments
lives up to its name. This tech company is new to the industry but is great for running
quick analysis’ on properties such as: Target cap rate analysis, Leas vs. own scenarios,
Loan amount analysis, Time value/IRR calculators and many more.

Future

Co-working space- Not necessarily a direct tech app or software, but the ability for
shared office space at companies like Irvine Co. and WeWork are changing the
environment in the industry.

9 CONTRIBUTION IN GDP AND

GROWTH
Residential investment (averaging roughly 3-5% of GDP), which includes construction of
new single-family and multifamily structures, residential remodeling, production of
manufactured homes, and brokers’ fees. Consumption spending on housing services
includes gross rents and utilities paid by renters, as well as owners' imputed rents and
utility payments Including owners' imputed rent (an estimate of how much it would cost
to rent owner-occupied units) in GDP has long been a standard practice in national
income accounting. Were owners' imputed rent not included, an increase in the
homeownership rate would cause GDP to decline. Supported by exceptional economic
and business conditions, returns on equities and bonds during the past 30 years were
considerably higher than the long-term trend. The high returns over the past decades in
Western regions stemmed from declines in inflation and interest rates from unusually
high levels in the 1970s and early 1980s, from strong GDP growth lifted by positive
demographics, from productivity gains, and advances in automation.

Some of these trends have run their course and are noticeably weakening with the global
investor community currently facing a situation where traditional fixed-income assets
provide low or even negative yields.

In this "lower-for-longer" investment environment, real estate receives increasing

attention as an asset class. For investors that can cope with illiquidity, global real estate
still offers the desired investment characteristics: a steady, long-term income, the
potential for capital appreciation, and significant diversification benefits. This has
especially been the case in most Asian countries where structural, long-term, and
sustainable economic growth has been persistent over the recent years. In fact, as GDP
growth is the main driver of real estate prices and rents, real estate investments provide a
direct way to participate in the strong growth of these economies.

economy has intensified in the recent years. While in 2000 the region accounted for less
than 30% of the world's output, by 2014 this share had risen to already 40% (as a
comparison: Asia accounts for about 60% of the world's population). In terms of
contribution to the annual growth, Asia accounted for nearly two-thirds of the global
GDP increase in the last few years. Figure 1 outlines the composition of the world's GDP
growth by region from 1990 to 2014.

9.1 The connection between GDP, income and real estate price

For commercial real estate, the logic is similar, but investors of commercial buildings –
unlike homebuyers – typically evaluate investment properties with respect to their
expected income and, therefore, commercial property prices experience a different. In
general, for investment property the price is a function of current income (cap rate),
expect valued income, opportunity cost (discount factor) and capital value growth
expectancy.

For residential real estate, the basic logic behind the co-integration of GDP growth and
real estate capital returns arises from the fact that income has to be accumulated to buy a
home. Income, in turn, can be directly derived from GDP with only a few adjustments.
Studies in Asia, Europe, and the US reveal that median home prices correlate by as much
as 60% to 95% with GDP per capita. In the long run the growth trends of both cycles
typically correspond to each other. However, high correlation between GDP and real
estate prices might not be given at all points in time. The prevalent real estate cycles do
not always mirror GDP cycles, but often follow their own pattern. In the short and
medium term real estate dynamics are not just driven by a country's prosperity and
depend on other determinants. These are, for example, urbanization rates, construction
activity and demographical changes which all influence supply and demand temporarily.

In sum, GDP can act as reasonable estimator for the progression of residential and
commercial real estate markets. One can recognize the same typical mean-reversion of
the real estate prices to the GPD as seen before.

A good example for this phenomenon is Hong Kong, where the real estate prices appear
to be basically just an amplification of the GDP per capita index. Even though real estate
prices do not follow the GDP progression perfectly at all times, it is evident across all
states that they revert to it systematically

The Global Economic crisis has adversely affected most sectors of the local and
international economy including the Jamaican Real Estate industry. In 2009, the real GDP
for the construction industry decreased by 4.6%, according to the Economic and Social
Survey of Jamaica1. The sector also contributed minus (-) 0.4% to overall GDP growth
during the same period. The average growth for 2004-2008 was 2.2%. This was due
mainly to the dampening effect of the global crisis on domestic demand. This decline in
building construction also stemmed from a reduction in residential construction and
private and public projects.

9.12 Similar picture for commercial property

Commercial real estate prices – similar to their residential counterparts – develop along
with GDP growth. Generally speaking, the commercial sector is driven by investors on
one hand and by corporate tenants on the other hand.Tenants drive commercial real estate
prices most directly. As an economy develops and the share of the industrial and service
sectors grows, more and more commercial space is needed. Also, an increasing number of
multinational companies enter the market and accordingly require office space in addition
to the growing local businesses.

A larger and more established commercial real estate sector, in turn, draws more attention
from global investors. They view the price of a property in the light of the achievable
yield, the potential for capital appreciation, and potential portfolio diversification benefits
alongside with factors such as market liquidity, regulations for foreign investors, and
mortgage conditions. Finally, the possibility – depending on local regulations – of a
conversion from residential into commercial property and vice versa ties the price
development of the two sectors further together. Be it from a homeowner, tenants, or
investor perspective, GDP is arguably the main driver behind both residential and
commercial real estate markets.

On the other hand, the construction industry’s real GDP grew by 7% contributing 0.7% to
total growth (the largest contribution by any sector) in 2005. This growth was influenced
by reconstruction associated with the passage of three (3) major hurricanes and one
tropical storm which resulted in increased activity in residential and non-residential
sectors. Non-residential activity was also positively influenced by infrastructural
development associated with various road improvement projects, hotel construction and
construction related to the preparation for two (2) venues for cricket World Cup in 2007
(Economic and Social Survey of Jamaica)

10 AMENDMENT OF PROPERTY LAWS

IN 2019 FISCAL BUDGET
Budget 2019-20 has been announced and as expected there are some changes and reforms
for the real estate sector Government plans to introduce reforms slowly over the next
coming years. However in this budget it seems like those reforms may come to an end
and we may finally see stability in the real estate sector. The present reforms in real estate
in the budget 2019-20 is a mixed platter and is a continuation of the polices we have been
seeing since 2016. The minister stated that the current government would not be
following the same approach – its modus operandi, on the other hand, would be to
expand the tax base and document the economy this development means that it has now
become all the more critical for property owners to avail the current government’s
amnesty scheme asset declaration cover before its June 30 deadline sets in – otherwise
they may stand to face inquiries regarding their sources of real estate financing.

Positive Reforms

236 W, paid by the buyer and normally known as super tax has been abolished, this was
the 3% tax levied on the differential of DC and FBR values. 236 k, paid by the buyer and
normally known as withholding tax has been reduced to 1% for filer and 2% for non filer
from 2 and 4 percent respectively.

Neutral Reforms

Non Tax filers can buy property above 50 lacs, however they will have to declare the
source or file returns within 45 days of purchasing the property. The exact details are still
unclear therefore they will update you when they have some details in black and white.
Cash transactions while buying property above 50 Lacs will be considered illegal and
subject to 5% penalty etc. Exact details are still unclear, however this was already being
followed to an extent so will have minimal effect on real estate.
FBR values to be increased to 85% of the property values in general. The new values are
yet to be identified and therefore we can only comment on it when that is done. However
it will not effect the transfer cost as 236 W and 236 K have been abolished and reduced
respectively.

Negative Reforms

Government has proposed to increase the Capital gains slab to 10 years rather than 3,
however it is still unclear at which rate it will be charged.
There is also a confusion that it will be charged as per the income tax slabs at 100% in
first year and at 3/4th rate after first year, however it is not possible because real estate
transactions are not time barred and therefore most possibly the rates will be fixed and
vary according to years. However it is still unclear how it is going to be charged and
therefore we can only comment on it further when more details are available.
some of the real estate-specific taxation and reforms had been introduced in the new
budget, along with concise analytical takes on what they can mean for the working of the
sector as well as the individuals affiliated with it

10.1 FBR PROPERTY VALUATION RATES TO BE

RAISED TO 85% OF MARKET VALUE

For many months now, the government has been looking to raise FBR property valuation
rates to equal the market value of their corresponding properties. So the following
measures have been proposed in the current budget for inching closer towards the
realisation of this end:

FBR valuations of properties will be raised to 85% of their market values.

Previously, property owners had been allowed to register their immovable assets by
paying a 3% additional tax rate on the monetary difference between their DC rates and
their FBR rates. This ‘amnesty scheme’ provision was announced after the introduction of
the FBR rates during the tenure of the former government. On a practical footing, this
allowance meant that a property holder was no longer required to explain the source of
funding of the difference amount between the DC value and the FBR value of a particular
piece of real estate – after payment of the 3% additional tax rate on this figure had been
deposited.
.
Furthermore, this development means that it has now become all the more critical for
property owners to avail the current government’s amnesty scheme asset declaration
cover before its June 30 deadline sets in – otherwise they may stand to face inquiries
regarding their sources of real estate financing.

10.2 LOWERED WITHHOLDING TAX RATE

in the budget, the following measures have been proposed which will affect the
Withholding Tax (WHT) rate imposed on property transfer cases

 The rate of WHT levied on the purchase of property has been reduced from 2% to
1% of its total value.

 Previously, the WHT was only imposed on the purchase of property valued higher
than PKR 4 million. This ceiling has been abolished. WHT will now be imposed on
all properties; irrespective of their value.

 Previously, no WHT was collected on the sale of property if it was sold after three
years of purchase. This time limit has now been raised to five years. Any property
sold within five years of purchase will be taxed at a rate of 1% of its total value.
10.3 THE CASE OF NON-FILERS

The government’s former finance minister announced a couple of months ago that the bar
on non-filers buying property valued higher than PKR 5 million would soon be lifted.
This provision has now been introduced in this budget. technically, non-filers of income
tax returns will now be able to purchase property that amounts to more than PKR 5
million. At the same time, however, the current budget seems to have done away with the
entire concept of a ‘non-filer’ status from Pakistan’s legal lexicon.

People who are legally required to file their taxes can now be liable to face prosecution if
they don’t do so. Moreover, they will be required to pay double the federal taxes (not
provincial) in all cases, whether they buy property, cars or perform any other taxable
transactions.

So putting all this concisely, non-filers can buy property worth more than PKR 5 million
under the new budgetary framework; but they will have to pay double the taxes, and
probably have investigative proceedings initiated against them. Now, just to be clear,
double the tax for non-filers is not new in most cases, but with this move it has been
standardized and imposed more or less across the board.

10.4 NEW CAPITAL GAINS TAX REGIME FOR

IMMOVABLE PROPERTIES

Previously, the Capital Gains Tax (CGT) on immovable properties had been calculated
separately; with the rate of the said tax dependent on how long the property was held – up
to a period of three years.

As per Tuesday’s budgetary announcement, the income accrued through capital gains
would now be brought under the government’s normal income tax regime, and taxed at
normal rates.

The State Minister for Revenue mentioned further in the budget speech that the capital
gains would be revised down on ‘the basis of net present value (NPV).’ However, this
provision has not been introduced in the actual bill.
Nevertheless, if introduced, what it would mean is that the gains would not be calculated
in absolute terms, rather they would be based on the difference between current NPV and
the sale price, instead of the purchase price and sale price.

It should be noted that the net present value of the property continues rising on the basis
of inflation rates each year.

The example below will further clarify this

A person buys a 5-marla plot at a price of PKR 2,000,000 at the beginning of 2017. For
the purpose of this example, let’s assume that the rate of inflation remains stable at 7%
each subsequent year. Then, the NPV of the property in 2018 will be PKR 2,140,000; in
2019, it will be PKR 2,289,800; and, in 2020, it will be PKR 2,450,086.
Then, if the person sells the property after three years at a price of PKR 2,500,000, here’s
how they will be calculating their actual gains

10.5 INVOLVEMENT OF BANKS IN PURCHASES OF

PROPERTY – NOW A MANDATORY PROCEEDING

Although non-filers have now been allowed to purchase properties individually valued
higher than PKR 5 million, all such acquisitions will have to be processed through
crossed banking instruments – otherwise, the property pursuant would be required to pay
an additional 5% penalty on the FBR value of the real estate considered.

Apart from this fine, the new budget speech’s official transcript states that, “the
deductions in respect of depreciation and amortization for such assets (not processed
through proper banking channels) will also not be allowed.” Moreover, the amount
declared in the property’s purchase agreement (for real estate procured in this way) will
also not be considered for the calculation of any gains when it is later put up for sale.

11 DARK SIDE OF REAL ESTATE

BUSINESS
11.1 DEFENSIVENESS

This is what the customers get from other Real Estate (RE) Agents when try to engage
them in conversation about what is wrong with our industry and our need to advocate for
higher standards and different ways of doing things many of them actually realize that
Real estate Agents have a bad reputation (or they are simply in denial). They don't
realized that the average agent is seen as an unscrupulous pestering "sales men”

There are 3 main reasons that Real Estate Agents get a bad (though often deserved) rap.

11.1.1 They Want Stop Talking

They won't stop talk about themselves, how awesome they are, how successful they are,
how much better than other agents they are, how much money they make And the
inverse of this... being a poor listener.

Now of course, there could be many reasons for this

The agent heard what the client said but didn't understand their client or their
expectations, so they mis-interpreted what they wanted. The agent was more concerned
with "up-selling" their client into a more expensive house, so kept showing them
properties outside of their price range. They were too busy talking and trying to prove
how smart, knowledgeable, successful, etc, rather than listening to and serving their
client. Or they were simply too busy in general, to provide quality time and service that
their client desired and deserved.

 They are disorganized and inefficient in how they run their business.
In clients or observation, this is the biggest culprit of the "too busy" agent. They simply
have never bothered to develop a system or get organized and they spend all their time
scrambling from one task to the next, in a flurry of inefficient and un-prioritized
busyness.

 They can't say "no".

In order to say "yes" to the right clients, you need to be able to say "no" to the clients who aren’t
a good fit for your business. "No" to tasks that suck your time but provide no benefit. "No" to
the demands of the "tyranny of the urgent", which are constantly trying to draw your
attention away from what matters, to that which doesn't.

11.1.2 They Are Viewed As Unscrupulous

It's hard to look at the industries commission structure and wonder how it's not a conflict
of interest. The more a home sells for, the higher the commission an agent receives is, so
how is it that part of the buyers agents job is to negotiate on the buyers behalf for the
lowest possible price? He is negotiating for a lower financial compensation for himself. If
your agent is less than ethical and more concerned about his bottom line then doing his
job of serving your best interest, this could prove to be a problem.

 Trust

Lack of trust with your agent, you don't have anything. Clients should need to find an
agent that you trust to do their very best for you, advocate for you and serve YOUR best
interest... even in the rare situation where your best interest is not theirs.

11.1.3 Incompetence

There are many factors to why an agent could come across as incompetent.

The most obvious reason would be that they are only doing Real Estate part time. Maybe
they have a day job for the security of the paycheck, or maybe they are a stay-at-home
mom or simply don't want to work full-time. Either way, as real estate agents we are
handling the sale of our clients largest assets, being an expert is critical. An expert in the
market. An expert in navigating the complex buying and selling process. An expert
negotiator, etc. And how does one become an expert at something? Experience. They do
it all the time. And frankly, Part-time agents typically don't have the experience necessary
not to make basic mistakes (which could spell large financial liability for the client). On
an even more basic level, they likely won't be available when you most need them.
Maybe they'll return your call during their lunch hour or after they get off work or check
their messages. But with today's fast-paced real estate business, an agent being
unavailable is unacceptable and could cost you the deal.

11.1.4 Tenants Aren’t Always Perfect.

When you screen a tenant, it’s like screening someone for a job. The candidate is going to
do everything possible to get their foot in the door. Their references are all going to praise
them. You won’t hear anything but highly positive things. You won’t see their true colors
until many months into the relationship.

There is also just the factor of laziness. There are lots of good agents but then there are
those who become complacent and just expect to make big money but no-longer care to
put in the work and hours to do their due diligence and take proper care of their clients.

So much of the focus is on where is the agents next transaction is going to come from.
The "accountability questions" from the broker are often along the lines of, 'how many
homes do you want to sell this year?', 'how much money do you want to make?'. It's no
wonder most RE Agents are 'transactional' in their focus and just move from one client to
the next as any sales person would, versus doing the hard work of developing legitimate
and long lasting relationships with their clients.Real estate Agents are told that this job is
all about relationships but then at the same time told that our main job and most of our
time should be spent "prospecting"... which in many cases, is a nice way of saying
begging for business. clients are taught to "ask for business" at every opportunity. They
are told that "every 'No' is closer to a 'Yes'..." setting up the expectation that rejection is
normal, just keep bugging people until someone agrees to work with you.

It's really should be no surprising element that agents prefer to bury their head in the sand
regarding the reputation of our profession. The industry as a whole is very inward
looking. Always giving kudos and pats on the back to each other for a great sales year,
'Top Producer' status, 'golden circle awards' and other meaningless awards for making the
brokerage firm money. The agents and firms alike think that they are pretty great and are
so entrenchment in the status-quo that I don't think they genuinely see how most people
or society at large views them. On top of that blindness, the industry resists change at
every turn, even change that would be best for our clients. Change that would result in
increased efficiency, saved money for clients or revolution how the industry works... they
all see it as a threat to the system and their livelihood. A threat to how 'things have always
been done'. I understand being scared of the unknown but in no other industry have I seen
such resistance to new technology, resistance to new ways of doing things or new models
that may actually serve our clients better than we are able to do now.

the industry has largely done this to themselves by fighting to maintain the status quo and
not policing up the 'bad apples'. Organizations like the National Association of Realtors
(NAR) lobby to keep the bar for becoming a RE Agent, nice and low (The more agents
there are, the more dues can be paid to them and the more money and power they have).
You need more credit hours to become a hair stylist then you do to get your RE License...
Kind of crazy. And the engrained sales culture and brokerage model lends itself to
bringing in "go getters" who are more focused on the numbers and size of sales, rather
than the quality of each transaction and conducting the business in a way that is best for
their clients and the industry as a whole. Brokerages know it's a number game - get as
many agents in your office as possible and some of them will end up making them
money... the quality of the agent are rarely a factor.

11.2 IN PAKISTAN PERSPECTIVE

Sasti Property Provide Real Estate Services Land House Home Plot for Sale or Rent in
DHA Lahore DHA Karachi DHA Islamabad DHA Peshawar DHA Multan dand Bahria
Town Lahore Bahria Town Karachi Bahria Town Islamabad and all other housings and
commercial no commercial plots all over pakistan. Every investment opportunity has its
own risks, whether its stock market, commodities, foreign currency or real estate sector.
These investment sectors have seen its ups and downs many times in Pakistan It is an
established understanding that the common person is not fully aware of the investment
opportunities and does not know well how to make ‘money from money’ successfully
and efficiently. And why should he be concerned? They usually have limited resources to
cope with and is mostly concerned about meeting there own daily needs. But the
problem starts when he gets carried away with the market trends and starts listening to
those people who lure him into what it seems to be the ‘right things to do’ at that time.

Pakistan has also seen many such cyclic trends. Many people have made lots of money
and many people at the same time have lost their lifetime savings. So in a philosophic
way, it can be said that every boom has its own falls hidden beneath. It may mean profit
for someone and ‘loss’ for someone else at the same time.

House for sale and plot for sale in DHA Multan DHA Islamabad DHA Rawalpindi DHA
Karachi DHA Peshawar DHA Lahore and Bahria Town Multan Bahria Town Karachi
Bahria Town Islamabad Bahria Town Rawalpindi Bahria Town Peshawar Bahria Town
Lahore and Also Property in Gwadar, Financial investments should always be based on
rationale decisions supported with solid analysis and projections. It is not for the faint
hearted or emotional people who should just get carried away eventually losing money

The real estate investment has its two sides, both positive. In deeper reality the amount of
investment never goes waste may benefit in long run . You always have a piece of land
with you even if the prices come down for temporary period. This piece of land cannot be
taken away from you and you can always hold it with you because its legally possed by
you Real Estate is always considered comparatively safe investment in both bullish and
bearish times because of its tangible asset value attached to it irrespective of its present
value.

The real estate sector in Pakistan is now going through the stability phase. This sector has
lots of investment potential for Pakistanis living within or outside of the country. The
recent investments by Bahria Town in Karachi, the expansion of DHA Karachi by
launching its huge DHA City Project, the expansion of DHA Lahore with Phase 9 with
more than 40,000 kanals of land, are just some of the projects which clearly show the
confidence of people in such projects and especially from the credible developers like
DHA & Bahria Town who have already delivered some of the best projects in real estate
for Pakistan.

Its estimated that the time of real estate stability has arrived after a long time in Pakistan.
Investment in real estate helps in many ways. It helps to grow your personal asset that
could benefit in strategic run; it helps to contribute towards national economy and it helps
to develop Pakistan with tangible results. The invisible investments in currency and stock
markets may not be for the common people and not necessarily for those prudent
investors in Pakistan and overseas who want to have secure assets back at home with
stable incremental investment growth. It is high time to use of the wisdom of the times
and act logically. Every investment opportunity has its own risks, whether its stock
market, commodities, foreign currency or real estate sector. These investment sectors
have seen its ups and downs many times in Pakistan. But perhaps the most important
lesson and wisdom always seem lost somewhere. It is an established understanding that
the common person is not fully aware of the investment opportunities and doesn’t know
well how to make ‘money from money’ successfully and efficiently. And why should he
be concerned? He usually has meager resources and he is mostly concerned about
meeting his own daily needs.

12 ROLE OF REAL ESTATE

REGULATORY ATHORITY
The Real Estate Authority (REA), formerly the Real Estate Agents Authority (REAA),
responsible for the regulation of the real estate industry as well as the agents within it The
Government, within a period of one year from the date of coming into force of this Act,
by notification, establish an Authority to be known as the Real Estate Regulatory
Authority to exercise the powers conferred on it and to perform the functions assigned to
it under this Act

it was established in 2009 .after the enactment of the Real Estate Agents Act in 2008.
The organisation took control of, and maintained, the roles of the now-defunct Real
Estate Agents Licensing Board In February 2018, the organisation’s operating name was
changed from Real Estate Agents Authority to the Real Estate Authority. Also in February
2018, the REA launched an independent and comprehensive government website for
property buyers and sellers In the period of 2011-2012, REAA introduced a continuing
education programme whereby all licensee's are required to complete 20 hours of
education, of which 10 hours are prescribed by directly by REA. In 2012, 11 licensees
had their licences cancelled on the basis of non-completion of the 20 hours of education.
[9] The continuing education programme was replaced with a continuing professional
development (CPD) programme in 2019. During 2012-2013, REAA found 124
complaints were consistent with unsatisfactory conduct, down from 152 in the 2011-2012
financial period, and a further 16 determinations of serious misconduct, up from 14 in the
previous financial period

The Securities and Exchange Policy Board of the Securities and Exchange Commission
of Pakistan (SECP) and Competition Commission of Pakistan (CCP) have recommended
establishment of 'Real Estate Regulatory Authority' to work as a regulatory body to
coordinate and advise all efforts of the government regarding the development of real
estate sector. In its last meeting at the SECP, SECP Policy Board had recommended
establishment of a Real Estate Regulatory Authority to oversee the real estates sector.

According to the report of CCP on real estate sector, the CCP has recommended
establishment of a Real Estate Regulatory Authority to act as a real estate regulatory body
to coordinate and advise all efforts of the government, regarding the development of real
estate sector.

The relevant authority should have the following functions and powers:

 Firstly, registration and regulation, pre-registration/licensing, and renewal of licence

of developers, promoters, project managers and real estate agents/brokers/dealers.
 The relevant authority should have the powers of defining and issue eligibility criteria
and qualification for market professionals and intermediaries and code of conduct, the
CCP said. It should be a standard setting body for issuance of uniform standards, code
of practice, and regulations for smooth and transparent conduct of real estate sector,
the CCP said
.
 The powers and enforcement actions of the proposed body included real estate sector
specific consumer complaint handling system and inspections, inquiries,
investigations and subsequent enforcement actions including, penalties and
restrictions. The relevant authority should have the powers of a quasi-judicial body.
The proposed authority shall have the same powers as are vested under the Code of
Civil Procedure, 1908 for the resolution of land/property disputes. In order to
facilitate the abovementioned functions, it is imperative that it is also given the
powers of acting as a quasi-judicial body, the CCP recommended.

 The relevant authority should perform functions of training and certifications of

brokers and agents. It should be promoting the technical education of brokers and
dealers and training and certification of real estate market professionals including
appraisers and values

 The relevant authority should have the powers of establishment of database and its
management. A national level computerized database should be developed which
should contain all information regarding a property including exact location .details
of the real estate agent who was involved in facilitation of the transaction, who should
also be held responsible in case of a dispute and publish and maintain a
website/database of all records of real estate sector, with an updated status on
registration, title, regulatory no objection certificate etc, and conversion of
conventional land record system on modern day's information technology based
systems, the CCP said.

 The responsibilities of RERA include: Licensing all real estate activities, managing
real estate developers' trust account, licensing real estate agents, regulating and
registering rental agreements, regulating and supervising the owners associations,
regulating real estate advertisements in the mass media, regulating and licensing real
estate exhibitions, and publishing studies for the sector.

 The RERA also informs people on regulatory acts when buying and renting the real
estate. Land resources can be in security until the building up is finished. The land
can be divided but only after a certain approval according to local planning.
According to the policy of confidentiality, the Dubai Land Department doesn't publish
any information about its clients. Information about the land conditions can be given
when the Dubai Land Department studies the condition of Land relations

12.1 NEED OF REGULATORY BODY IN REAL ESTATE

Now a days many people are cheated by builder, and since builder are big gun so very
few people get justices against builder.
Similarly we have laws but........the same story. Nobody cares/dares it. It’s a different
issue that 70% of the people get affected due to share market result. Similarly in today's
real estate many be get affected directly but 90% indirectly. the real cause of recession.
It’s again the same real estate sector in The US and of course some mortgage problem.

Actually we need to understand where a regulator is needed and where not. Three basic
needs – Food, Clothing & shelter - Now everybody knows Regulatory body in Food and
Beverage is really important they don't have as such a proper regulatory authority for
governing in this era every one desired to have a own house/shelter - whether rich/poor
black/fair it takes whole life to get a home. Huge sum of investment is involve but govt.
advertises about checking food quality, prices of a commodity, and problems with auto,
electrical equipments, and credit cards and haven't seen this effort to educate people
about real-estate aggressively.

What to do if you are at problem with your builder, what is map approval, how can a
common man get it, what is mutation, why is it important, - really more important to any
man than running after some credit card inflated bill or some inflated charges taken by
Big Bazaar - sort of problems. Money market is needed to be regulated because it is the
backbone of economic system. The amount of business real-estate industry is generating
can't be no-longer ignored. After 2001, probably everyman directly or indirectly is
associated with real-estate sector After IT and ITES industry, real-estate sector comes
next in terms of people employed. The value of stake holders in this sector is no lesser
than 90%.

12.2 GUIDANCE TO ASSOCIATE IN REAL ESTATE

PURCHASE

12.2.1 Be an informed consumer

Buying a house is one of the most complicated and expensive purchases consumers ever
make. As with most other things, they got what they pay for. Look at one and differentiate
with many on different attributes in other areas . Once they have seen something they
like, assess its location. How far will they have to commute? What is the traffic like?
How does the neighborhood look? What services are available? How good are the local
schools? What is the crime rate in the area, and what types of crimes have occurred in the
past couple of years? Visit the home on multiple occasions and at different times of the
day. Remember: location, location, location. It's one of the biggest factors in setting the
price of the home. Before consumers make a written offer, know exactly what they are
buying and what the costs will be after the entitled is transfer to them.
12.2.2 Role of real estate agent or an attorney

An experienced local real estate agent can assist buyers in finding a home that fulfils their
particular needs. He or she will also have information about the home and area that an
outsider would never find just by looking at the particular home. Most homes are listed
for sale by a real estate broker who is referred to as the seller's agent. The seller's agent
represents the seller. The agent who helps to find the home is called the buyer's agent.
Usually buyers will not have to pay your agent a fee for the time and energy he or she
spends in finding the home and assisting them in closing the sale. The buyer's agent's fee
will be paid by the seller when they complete the purchase of the home. Real estate
representative will also provide assistance in negotiating the price, learning about the
community, obtaining a loan, inspecting the home, and in closing the sale. In some
instances, a real estate agent can represent both the buyer and the seller.

This is referred to as a dual agency. This must be disclosed to buyers before they make an
offer. It is advisable that they should proceed carefully in this situation, since there agent
will be working for both the seller and buyer simultaneously. If buyers are not sure about
there rights and responsibilities, it is advisable to see an attorney who is experienced in
the purchase of residential real estate.

An attorney can help with legal and tax questions that come up during the purchase of the
home, and can assist buyers in reviewing all of the documents and reports that will be
provided to them in the process of purchasing the home.

12.2.3 What sort of information must the seller provide

In most cases, when buyers are willing to buy a home, the seller must provide them with
a Real Estate Transfer Disclosure Statement. This is a pre-printed form that lists many
features or conditions about the home, the land, and the area where the home is located.
The seller must list on this form any possible problems he or she is aware of that might
affect your willingness to purchase the home.

This includes, for example, easements, rights of others to control how you use the
property, environmental problems, nonfunctioning equipment, zoning and building
violations, and special assessments. The seller's agent must visually inspect the home and
report all facts that he or she feels might affect their decision to buy this property. If
additional information is required that is not covered in the Real Estate Disclosure
Statement or additional information that is disclosed, put your queries in writing and ask
the seller to respond in writing. Disclosure Statement immediately and carefully need to
be reviewed . In most instances, buyers will have a limited period of time to decide
whether they wish to proceed with the purchase despite the stated disclosures

12.2.4 How do I make an offer on a house

Most homes are sold through real estate agents who have expertise in valuing homes.
buyers can also get information on home sales in specific area by visiting a host of
Internet sites provided by professionals in the industry, or by reading the real estate
section of your local newspaper. Once they have found the home of their choice and have
determined how much they are willing to pay, they need to make a deposit (called earnest
money) to show the seller that they are serious about buying the house. The deposit is
considered a down payment on the price of the home. In some instances customers may
have to increase deposit or increase offer, especially if there are multiple offers on the
home. The deposit is usually deposited in escrow upon the acceptance of their offer.A
written offer on a form known as the Residential Purchase Agreement and Receipt for
Deposit is submitted this form sets out the terms upon which they are willing to purchase
the property. The price they offer on a home will, in most cases, be less than the amount
they will need to purchase the home. There will be expenses incurred in purchasing the
home that will have to be paid by either the buyer or the seller. These include, for
example, title reports, document preparation, recording fees, local taxes, fees for
inspections, escrow fees, homeowner's insurance, and notary fees.

12.2.5 How the title to the home should be held

Prior to the close of escrow, the escrow holder will ask buyers how they wish to hold
title to there new home. How someone holds title will affect what will happen to the
property in the event of the death of one of the owners. It also will affect whether certain
taxes will be incurred or whether a probate of the estate will be necessary. They should
discuss there options with a tax specialist and agent before they make any selection.
Buyers can hold title to the home by them selves , as separate property, with there
spouse, as community property, or with there spouse or a third party, as joint tenants or
tenants in common. They can also hold title to the property in a family trust.