Regularization of Irregular Housing Schemes Ordinance 2021

Regulatory Objectives

Punjab Governor Chaudhry Mohammad Sarwar has enacted regulations governing private housing schemes titled “The Punjab Commission for Regularization of Irregular Housing Schemes Ordinance 2021” to build customer trust. It appears to be an active step in cracking down on illegal housing projects in Punjab Province. The Commission wants to investigate the violation. Through this regulation, the authorities have conveyed that illegal housing projects will no longer be tolerated in the province and take decisive legal action against all illegal housing societies.

What is meant by Irregular Housing Schemes?

Irregular housing scheme means a private housing scheme or a land sub-division or a built-up area that has been developed or a part of which is being developed or sold without the approval of the competent authority or in violation of the approved layout plan or the applicable laws or with the approval of the authority not competent to approve the housing scheme. Therefore, it is essential today to scrutinise and regulate to gain more trust from real estate investors & clients.

Establishment of an Active & Experienced Commission

The 2021 Planning Act constitutes a strong, experienced and knowledgeable committee. The composition of the committee is as follows.

• President: Former judge of the Supreme Court or High Court of Pakistan.
• Urban Planner with at least 20 years of experience.
• Civil Engineer with at least 20 years of experience and accreditation by a national or international professional association.
• Environmentalists with more than 20 years of experience.
• Legal expert with at least 20 years of experience in applicable law.
• Any other expert in the relevant profession in the public or private sector (co-opted by the Commission).

This mandated and experienced Commission will play a key role in regulating the irregular housing schemes in Punjab and speeding up the legalisation process.

The Commission will have the power to impose fines, recommend disciplinary action against officials and officials responsible for establishing irregular private housing schemes, regulate inappropriate land use, and recommend changes to applicable laws and regulations.

Role of Development Authorities & Local Government

The local government or development authority is responsible for providing secretarial support to the Commission and creating & submitting a database of irregular housing schemes. This support will make it easier for the Commission to identify its authority regarding housing projects.

Violation Fines against Irregular Housing Schemes

Violation fines against Irregular housing schemes will be in the following cases:

• Improper land use
• Lack of parks, open spaces or public buildings
• Missing graveyard
• Access road width is less than the required planning standard
• Internal road width is less than the specified standards

Summary

The government will not tolerate illegal housing scheme projects, and it’s being done to boost the real estate sector. The good news is that the government wants to regulate rather than ban illegal housing projects. It will undoubtedly increase customer trust. Both domestic and foreign investors are sure to show greater confidence in real estate following the completion of the irregular housing schemes ordinance 2021, enacted to establish commissions for housing projects in Punjab.

Lower Interest Rates

LAHORE: The federal government’s decision to incentivise the construction sector has opened avenues for investments in many sectors. Pakistan Tehreek-e-Insaf (PTI) government adopted a number of measures to facilitate the sector in a bid to encourage private investment.

The government not only toned down its taxation ratio for land transfers but the measures taken to prevent several different departments’ interference and inquiries into sources of income from the investors also boosted investment in the construction sector, The Express Tribune reported on Saturday.

Since the last one month, land prices in major cities have been increasing, especially in areas where construction is allowed. Moreover, lower interest rates have also led many Pakistanis to transfer their funds from banks or savings accounts towards real estate.

According to reports, land prices of Lahore Defence Housing Authority (DHA) have increased by 30 percent in one month along with rental rates of housing properties.

Following the PTI government’s early days in office, the real estate market was in turmoil as investigations into the source of income created panic among investors and badly impacted the sector. The circulation of money stopped, and a trickle down effect was visible in nearly all other sectors of the economy as money circulation, both black and white, is much larger than any other segment of the economy.

Overseas investors now have a legal cover as well if they wish to put their money in real estate or construction sector. The State Bank of Pakistan (SBP) has also given its directions in favor of overseas investors in this sector.

Real Estate