CCP flags deceptive real estate practices, hidden charges
Pakistan’s Competition Commission flagged deceptive real estate marketing, misleading claims, hidden charges, and misrepresentation of approvals after an open hearing in Islamabad. The CCP will consider recommendations as it develops its opinion.
ISLAMABAD: The Competition Commission of Pakistan (CCP) has flagged deceptive marketing, misleading claims, hidden charges and misrepresentation of project approvals as major competition and consumer-protection concerns in the real estate sector.
The concerns surfaced during an Open Hearing held by the CCP in Islamabad, where consumers and investors shared their experiences while developers, builders, real estate professionals and representatives of regulatory and government bodies presented their views on practices affecting competition and consumer interests.
“Real estate represents a major financial commitment for ordinary citizens. When investment decisions are influenced by false claims, misleading advertisements, undisclosed charges or inaccurate representations about approvals and project features, the consequences for consumers can be significant,” CCP Chairman Farid Ahmad Tarar said.
He said the hearing was aimed at identifying recurring concerns, hearing competing perspectives and assessing issues that may require broader regulatory, policy or advocacy responses.
The hearing, conducted under Section 29(c) of the Competition Act, 2010, brought together representatives of NAB, CDA, RDA, FGEHA, Ministry of Housing and Works, SECP, PPRA, PTA, IPO Pakistan, Punjab Land Records Authority, ICT Administration and the Office of the District Magistrate, besides representatives of major housing societies, real estate businesses and consumers.
Consumers highlighted alleged deceptive practices by developers, housing societies and real estate businesses, while industry representatives presented their position and expressed commitment to compliance with applicable laws, including the Competition Act.
Representatives of regulatory and government bodies highlighted their respective mandates and stressed the need for greater coordination to address issues affecting consumers and competition in the sector.
The submissions and recommendations received during the hearing will be considered by the CCP as it develops its opinion on competition issues in the real estate sector.
The Commission said a competitive real estate market requires accurate and verifiable information, informed consumer choice and competition based on the actual merits of projects.
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