In Pakistan, no matter how lucrative the property investment opportunity is, not all the propositions are safe and reliable. We always suggest checking the legal status of properties before investing.
When it comes to legality, go straight to authorities, like CDA, RDA, LDA, and KDA (more on it), and do give these property acts a read before investing in any opportunity in Pakistan.
- The Transfer of Property Act 1882
- Land Revenue Act, 1967
- Stamp Act 1899
- Registration Act 1908
Other than these legal bounding, an investor should know about;
- Cash flows
- Profit potential
- Long vs. short-term investment gains and markups
- Property valuation
- The classes of properties
- The ups and downs of the property market
- The current standing of the property developer, etc.
With the limited scope of the blog, this write-up covers the role of authorities in securing real estate investment opportunities in Pakistan.
The Role of RDA, CDA, KDA, LDA, … in evaluating Property Investment options
The role of these bodies is to ensure the authenticity and validity of property investment throughout the major cities of Pakistan. The growing urbanization has made real estate investments accessible to all sorts of investors/individuals.
Well, thanks to these governing bodies… for making our real estate investments safer and more reliable. Now, anyone with enough capital can invest in any residential and commercial project without worrying about losing their hard-earned fortune
Authorities for Property Investments in Pakistan
CDA – Capital Development Authority
It is one of Pakistan’s top-most sourced and authentic regularity bodies of real estate in Pakistan. In Islamabad alone, there are 140 unlawful housing communities, thanks to CDA for this insight. The primary function/job of the CDA is to plan the societies, maintain, and regularly check on towns and buildings in Islamabad, following the city’s master plan.
If the project/society is CDA-approved, it means it has cleared its LOP (Lay Out Plan) and holds NOC (No Objection Certificate). With a CDA badge, the property can easily be transferred from one owner to another and can also escape fraudulent issues.
To know the status of the property you’re interested in, go to CDA’s official website and search for the respective property. You can always read the bylaws of CDA, at which properties are being approved/disapproved.
LDA - Lahore Development Authority
It is a government regulatory body that guarantees the building, maintenance, and overall infrastructures of Lahore, the most-developed city in Punjab.
It looks forward to all new and old constructions of the city. The governing issues All issues/disqualifies a no-objection (NOC) certified to all the projects (commercial and residential) before they begin their construction phase.
The authority keeps on regulating – listing and delisting the projects, especially those built in the outskirts.
Having these authorities means avoiding scams and fraudulent/illegal acts, which some handful of individuals do in the country. Other than commercial and residential neighborhoods, the authority also assures the development and maintenance of Lahore’s green areas and parks, too.
If you are interested in any LDA-approved project/scheme, do check the status from here.
RDA - Rawalpindi Development Authority
This authority in Rawalpindi keenly checks and updates the projects being developed across the city. The body also inaugurates new commercial and residential projects, co-chaired with other individuals.
Also, this is the same legal body that plans and executes long/short-term public projects, like roads, bridges, parks, bust tracks, and others. If you want to check the listed projects with RDA.
KDA - Karachi Developments Authority
This local body is a joint venture of the water board and the Karachi Improvement Authority, the collaboration took place in 1957. The body does not work only for the development of building projects but also looks for maintaining and setting up the current and old infrastructure of the city.
Since the role of KDA is diverse, here is a list of all the functions that the body performs for the 22 million citizens that are living in Karachi;
- Developments of Lands, roads, bridges, and sewage systems
- Computerization of Land Record
- Accounting System.
- Land Acquisition
- Archiving of Land records.
- Manufacturing of Pipelines
- Anti-Encroachment and Resettlement.
- Horticulture-Parks and Recreations
- Design Bureau and whatnot.
To find out about KDA-approved societies, click here.
Other Certification and Approvals
It is mandatory to take hold of standard documents concerning property investment in Pakistan; if you’re planning to invest in any project in Karachi, ensure these documents are available.
- Sale Deed
- Mother Deed
- No objection Notice
- Bank Approval (Home Financing)
- Power of Attorney
What makes a Commercial Property Investment best bet?
These are the top features that make a proposition, the best bet;
- Located in the commercial hub of the city.
- Property valued more than the other localities.
- Newly-created investment opportunities.
- A property with higher returns (Rental and capital gain)
- Approved by the local bodies.