Do you know that 40 percent of the real estate capital gets stuck due to malpractices? Well, no more!

Real estate is a very well-paid sector in Pakistan. The real estate sector is extensive and has ample potential to boost any country’s economy. In past years, the rates of real estate in Pakistan have arising which makes it one of the security sectors to invest in.

The real estate sector is now considered one of Pakistan’s most gainful business and investment opportunities, due to significant advantages such as asset ownership, high returns, and security.

However, there are several real estate challenges in Pakistan that property owners face. Unlike any other industry, the real estate sector of Pakistan has the issue of negligence. It occurs as a result of a lack of proper awareness of this sector. There are no monitoring authorities in Pakistan to bring clarity and responsibility to this sector.

List of common Malpractices in Pakistan

1. Honey potting
2. In-direct Selling
3. Lack of verification
4. House Flipping

Honey potting:

Honey potting is the concept of luring people through images and details of properties that have been sold or are not available. When a buyer contacts an agent for this property, they respond that it is sold out, but now the agent has a lead. They’ll bombard this lead with multiple other options from their inventory hoping to strike a deal.

In-direct Selling:

Indirect selling is the technique of selling plot documents in the name of getting approved NOCs in a while. This is one of the immense real estate frauds in Pakistan, as this is a way of robbing people when they have presented the dream of getting huge profits at a time.

In this form of fraud, people are duped into believing that the developer is actually assuring preliminary construction work and that the plots are ready for sale. While in reality, no such work is done and it is an insignificant tactic of selling plot documents.

Lack of verification:

Due to a lack of regulatory supremacy, developers construct residential, private enterprise, and/or hybrid projects without securing essentials. No-objection certificates (NOCs) from the district development authorities.

This resulted in the destruction of these development projects; such as the destruction of Nasla Tower Karachi.

House Flipping:

There is yet any other form of real estate scam that is slowly increasing. In this scam, people who are owners of houses decide on interchanging houses or plots of equal value, rather than money or cash involved. However, this is a major risk that not many are eager to take. It can be feasible that the owner may have created property papers for a house and bluff to exchange it, with the issue that the lawful owner later attests to the property.