Islamabad: After much consultation and wait, the federal cabinet has finally approved the establishment of a Real Estate Regulatory Authority (RERA).
The builders and developers will now be required to seek permission from RERA before commencing any project. Similarly, the authority is mandated to prepare and implement regulations to reform the sector and improve its efficiency.
While briefing media, Dr Firdous Ashiq Awan, Prime Minister Imran Khan’s special assistant, said that the premier wants to “regulate” and “facilitate” the real estate sector, which is possible if any exclusive body is being formed and brought to activity.
However, the step was not appreciated by Association of Builders and Developers of Pakistan (ABAD), as its member Arif Jeeva believes that it will have a negative impact on the real estate development industry.
He stated that “No stakeholder was taken on board before making the decision”. He added that the government is planning to implement Dubai model of Real Estate Regulatory Authority, which may not prove effective in this context.
However, Islamabad-based Builders and Developers Association (BDA) appreciated the establishment of RERA. While talking to Graana.com, the BDA’s representative said that though the government should have taken all relevant stakeholders on-board for insightful consultations, the decision, however, is a positive step towards reforming the real estate sector.