For the first time in Pakistan, digitisation of the entire real estate sector across the country is under way to evaluate the actual values and price of commercial immovable properties for documentation of land record.
In an exclusive talk with Business Recorder here on Saturday, Shafiq Akbar (Chairman Graana Group of Companies) strongly suggested establishment of the special courts to deal with the land and commercial properties disputes. There are no special courts in Pakistan and these should be established on top priority basis to deal with the land disputes in the most heavily invested sector in the country. Moreover, legislation is also needed for documentation of the said sector and speedy trial of land disputes in courts.
He said that Pakistan is among those few countries where highest profits are earned from real estate sector and this requires a case study to digitise the highest earner sector of the country.
Shafiq Akbar informed that the survey on land record digitisation has been started by the expert teams of the group to evaluate the actual immovable properties' values used on commercial basis. This is for the first time that such kind of research has been started in Pakistan. The survey of two cities including Islamabad has been completed and the digitisation of rest of the country is under way. The real estate valuation would be a major breakthrough in Pakistan to provide an authentic database on commercial real estate properties across the country.
"If the purpose was to only earn money from real estate business, Shafiq Akbar disclosed, it would be very easy for me to earn in UK from this business. I have specially came from UK to Pakistan to start some innovative work in the real estate sector, particularly documentation of the said sector.
The concept of land record digitisation is new in Pakistan but it would also be instrumental in maintaining an authentic database on commercial properties in all major cities of the country. The record would also expose those housing societies and projects which are not duly approved by the competent authorities. The actual land stock identification of commercial immovable properties would also be done through the said digitisation survey."
"Over 400 employees in the Graana Group of Companies are supporting the said land record digitisation project," he said.
He said that the commercial land in seven major cities including Karachi, Lahore and Faisalabad are being digitised. The Islamabad has been completely digitised. In the next phase, the land and development cost of the commercial projects is being evaluated with the help of expert teams.
He said, "Pakistan has huge potential for investment, especially from overseas Pakistanis, in real estate sector if we can really bring transparency and investment protection."
Shafiq Akbar explained that the land inventory in Pakistan should be digitalised for smooth processes and graana.com is focused to digitalise the land record of the whole Pakistan. He told that lack of digitalisation is creating many issues in buying and selling and developers avoid such sites.
He stated that they are in process of finalising the vision 2030 policy level document that will provide guidance to utilise the true potential of real estate in Pakistan. He added, "If we will follow the vision 2030 then investors will come to Pakistan and more than 250 ancillary industries of real estate will also grow and help creating employment in the country."
While commenting upon the government agenda of 5 million housing project, Akbar said that there is a shortage of 9 million houses in Pakistan which is increasing 4 to 5 hundred thousand every year proportional to population growth. "If we really need o fulfil the gap then we need to be focused on solid policy formulations and investment protection and business friendly environment."
Referring to India, he said that the Digital India Land Records Modernisation Programme (DILRMP) was launched by the government of India in August 2008.
Sharing benefits of digitisation, he highlighted that to maximise the rent of land, the competitive market is essential. Without a proper classification and record of land, the land market cannot be competitive and the rent will not be maximised.
He said that the transparency brought through digitisation of land records will make it difficult for the general public to evade property tax. Planning of industrialisation and smart cities by the government will become easier.
The government's initiation towards digitisation will not only speed up the process of land acquisition but will also help in building up of local revenues through property tax billing and collection and also by providing conclusive titles to land owners.
The digitisation of property records will help in transparent land records management with a single window to handle land records which will include maintenance and updation of maps, survey and registration of property. It can also aid online approvals of plans and occupancy certificates.
It will help in showcasing the ownership status and ease overall business processes in the sector.
Overall it becomes easier for the developers and buyers to check on the authenticity of the land or the property. Digitization will also make both domestic and cross-border transactions time-bound with the click of a button, he said.
Shafiq Akbar stated that there is a huge potential of estimated one trillion dollar for real estate development in the country including land stock and actual values of the properties.
Talking about the tax policy, he said that multiple taxes on buying and selling of properties needs to be rationalized through a proper tax policy for the real estate sector.
The Securities and Exchange Commission of Pakistan (SECP) is playing an important role for documentation of the real estate companies, but the FBR should also focus on a tax policy for development of this sector and industrial growth.