National Real Estate News

The Senate Standing Committee on Petroleum has questioned the marginal reduction in petrol prices despite ample fuel reserves and the arrival of fresh petroleum consignments, while expressing concern over the mechanism for determining fuel prices, employee dismissals and delays in gas projects. According to details, the committee raised questions during its meeting about why petrol prices were being reduced by only a few paisas despite sufficient fuel stocks in the country and the arrival of fresh petroleum consignments. The committee also expressed concern over the mechanism used to determine petroleum prices. The meeting also discussed the dismissal of employees and delays in various gas projects. The committee voiced reservations over these issues and reviewed the matters brought before it. The Senate Standing Committee on Petroleum also took up the ownership structure of Jamshoro Joint Venture Limited (JJVL). However, detailed deliberations on the matter were deferred until the next meeting. This marks the second time the committee has postponed consideration of the issue. Previously, the committee had raised questions over the continued supply of domestic gas to Jamshoro Joint Venture Limited despite gas shortages at state-owned power plants. Senator Saifullah Abro had alleged discriminatory treatment in the matter, claiming that power plants were shut down to facilitate the revival of JJVL. The committee is expected to revisit issues relating to petroleum price reductions, gas supply arrangements and the ownership structure of Jamshoro Joint Venture Limited at its next meeting.

ISLAMABAD | Re News Pakistan

The Capital Development Authority (CDA) has invited engineering firms and construction contractors to submit applications for prequalification for the proposed Shahdara Dam project in Islamabad, marking a new step in the procurement process for the development.

According to a procurement notice published on October 12, 2026, the authority will undertake the project under an Engineering, Procurement and Construction (EPC) arrangement, bringing engineering, procurement and construction responsibilities together under a single contract.

The prequalification process is intended to assess the eligibility of firms seeking to participate in the proposed project. Interested applicants must hold registration with the Pakistan Engineering Council (PEC) in Category C-A to qualify for consideration.

The CDA has directed prospective applicants to obtain the detailed prequalification criteria and required submission documents through the federal government's Electronic Procurement and Disposal System (EPADS).

Applications must be submitted electronically by October 28, 2026, at 11am. The submitted proposals are scheduled to be opened online at 11:30am on the same day.

The authority has made electronic submission mandatory and will not accept applications submitted manually. Interested firms have therefore been advised to review the eligibility requirements and complete the submission process through the designated procurement platform before the deadline.

The EPC model generally places responsibility for engineering design, procurement of materials and equipment, and construction with a single contractor. Such arrangements are intended to integrate project delivery responsibilities under one contractual framework.

The announcement represents the contractor prequalification stage of the Shahdara Dam project. However, the notice does not confirm the award of a construction contract, the selection of a successful contractor or the commencement of construction work.

Further details regarding the project's implementation timeline and subsequent procurement stages will depend on the outcome of the prequalification process and the CDA's subsequent decisions.

ISLAMABAD | Re News Pakistan

The Capital Development Authority (CDA) Chairman, Sohail Ashraf, has directed officials to accelerate construction work on the Islamabad Expressway Service Road East Project and ensure its timely completion while maintaining high quality standards in accordance with approved designs.

On October 12, 2026, the CDA chairman visited the project site to review the progress and quality of ongoing development work. He was briefed on completed work, current construction activities and the next phases of the project.

Ashraf described the Islamabad Expressway East Project as an important initiative for improving road connectivity, reducing traffic congestion and strengthening the capital’s road network. He directed the relevant officials to ensure strict compliance with approved designs, technical specifications and construction standards.

He also emphasised regular field monitoring, effective quality control and proper traffic management throughout the construction process to minimise inconvenience for commuters. The Additional Deputy Commissioner (General) Islamabad, the concerned assistant commissioner and CDA officials were also present during the visit.

The chairman was subsequently briefed on an ongoing enforcement operation against illegal construction, unauthorised commercial activities and violations of land-use and building-control regulations along Islamabad Expressway East.

The operation is being conducted by the CDA’s Building Control Section and Directorate of Enforcement in coordination with the district administration and Islamabad Police.

According to the briefing, a total of 377 buildings and other structures, including 281 commercial properties, have been identified for enforcement action. So far, 58 buildings have been sealed, including 34 in Sohan Iqbal Town and 24 in the areas of Korang Bridge, Korang Police Station and Gulberg Greens.

In addition, 124 structures between Sohan and Khanna Pul have been identified for demolition, and demolition operations are underway.

The violations include unauthorised construction, non-conforming land use, construction without approved plans and failure to meet mandatory fire-safety requirements. Notices were served on the owners and occupants concerned, followed by enforcement action against those who failed to rectify the violations within the prescribed period.

Officials informed the CDA chairman that Rs250,590,157, equivalent to approximately Rs250.59 million, had been recovered during the enforcement operation. The amount was collected through land-use conversion charges, penalties related to unauthorised construction and de-sealing charges.

The recoveries were made from various properties, including commercial buildings, shopping plazas, hospitals, marriage halls and other business establishments.

According to officials, approximately Rs3 billion remains recoverable under applicable regulations in connection with land-use conversion charges, unauthorised construction and violations involving mandatory building setbacks, Floor Area Ratio (FAR) and covered areas.

Ashraf directed the relevant departments to ensure strict, consistent and uninterrupted enforcement of building-control regulations, land-use rules and mandatory fire-safety standards.

He made it clear that illegal construction and activities inconsistent with approved land use would not be allowed to undermine planned development, public safety or the orderly expansion of Islamabad.

The CDA said its ongoing development and enforcement initiatives aim to improve road infrastructure, strengthen traffic management, enhance urban planning and ensure public safety across the capital.

The chairman reaffirmed his commitment to accelerating development projects, maintaining high construction standards and ensuring compliance with planning and building regulations. He said efforts would continue to provide Islamabad’s residents with modern infrastructure and improved public facilities.

According to the statement, citizens and commuters have welcomed the CDA’s efforts to improve the road network, facilitate mobility and strengthen enforcement of construction regulations.

Islamabad | Re News Pakistan

ISLAMABAD The Capital Development Authority (CDA) failed to sell five hotel plots during its commercial property auction held at the Jinnah Convention Centre on October 12, 2026. Investor participation remained limited, with participants describing the reserve prices set by the authority as commercially unviable.

Only five parties took part in the bidding for the hotel plots. According to investors, the reserve price of approximately Rs1.9 million per square yard was financially impractical for hotel development projects. One participating investor reportedly considered Rs1.3 million per square yard a more reasonable and commercially viable price.

Reports indicate that only one bid exceeded the reserve price by Rs5,000 per square yard. However, despite this offer, none of the plots could be sold.

The five sites offered for auction included a 5,274-square-yard hotel plot in D-12 Markaz; two large plots measuring 21,777 and 18,055 square yards in F-5/1; a designated hotel site in E-11 Northern Strip; and a 2,444-square-yard plot along Srinagar Highway.

At the prescribed reserve price, the 21,777-square-yard hotel site in F-5/1 was valued at approximately Rs41.38 billion, while the second plot in the same sector was valued at Rs34.30 billion. The estimated value of the D-12 plot stood at Rs9.99 billion, while the Srinagar Highway site was valued at Rs4.64 billion. These estimates do not include construction and other development costs.

To attract investors, the CDA had announced several incentives, including a flexible payment schedule spread over one year, approval of building plans upon payment of 25 per cent of the purchase price, and possession after payment of 75 per cent, subject to submission of an acceptable bank guarantee for the remaining amount.

The authority also offered a five per cent discount to buyers making full payment within 30 days, along with an additional five per cent discount on eligible payments made in US dollars. Investors were also allowed to use Roshan Digital Accounts and local banking channels to facilitate payments.

Despite these incentives, the auction failed to attract successful bids, raising questions about the CDA's pricing strategy. Hotel development requires substantial investment not only in land acquisition but also in construction and associated infrastructure.

As of the time of reporting, the CDA had neither announced revised reserve prices nor issued a schedule for a fresh auction.

Meanwhile, seven petrol pump sites were scheduled to be offered on the second day of the CDA's commercial property auction, October 13. The sites included locations on Murree Road, Blue Area F-10, I-12 Markaz, G-8 Markaz, G-8/1 and G-11/1.

Participation in the petrol pump auction was restricted to registered oil marketing companies (OMCs). The sites were to be offered as a single package under a 20-year lease, with monthly rent determined through competitive bidding and an annual rent increase of 10 per cent.

The token money for the petrol pump sites was fixed at Rs25 million. Successful bidders would be required to complete construction within a maximum of five months while bearing all associated development costs.

The CDA had announced the commercial property auction on October 7, 2026. Following the failure to sell the hotel plots, the outcome of the petrol pump auction was also expected to provide an indication of investor appetite for commercial properties in Islamabad.

Islamabad | ReNews Pakistan
Prime Minister Shehbaz Sharif has directed the State Bank of Pakistan (SBP) to accelerate loan disbursements under the government’s Apna Ghar programme, ensuring that approved housing finance reaches eligible applicants on time.
Expressing concern over delays in the release of approved loans, the prime minister instructed banks to simplify lending procedures and remove unnecessary obstacles.
According to media reports, he issued the directives during a meeting with the presidents and chief executive officers of major commercial banks. He urged banks to expedite the processing of loan applications, improve coordination with relevant institutions and ensure timely access to housing finance for eligible citizens.
Officials informed the meeting that banks had approved housing loans worth Rs 426 billion, but had disbursed only Rs 76 billion to applicants. This leaves approximately Rs 350 billion in approved loans awaiting disbursement, highlighting a substantial gap between loan approvals and the actual release of funds.
The slow pace of disbursement has become a concern for the government as it seeks to expand access to financing for affordable housing.
Launched on April 30, 2026, the Apna Ghar programme aims to improve access to housing finance for Pakistani citizens. Through the banking system, it supports loans for eligible families to purchase or build homes while also seeking to promote residential development across the country.
Figures presented at the meeting showed that, by the end of September 2026, only 13,214 people had received housing loans totalling Rs 76 billion. The government wants approved applicants to receive financial assistance without prolonged administrative delays.
For the 2026–27 fiscal year, the government has set a housing finance target of Rs 700 billion. The programme will also support the construction or provision of 125,000 housing units nationwide.
The prime minister instructed the SBP and commercial banks to review existing procedures and identify barriers to timely loan disbursement. Measures to facilitate applicants could include simplifying documentation requirements, speeding up application processing and strengthening coordination between banks and relevant institutions.
The meeting was also informed that discussions were under way to expand financing opportunities for property developers. Improved access to finance for developers is expected to encourage residential construction, increase housing supply and stimulate activity in the real estate and construction sectors.
However, meeting the programme’s targets will require more than loan approvals. Timely disbursement of approved funds to eligible applicants, supported by effective monitoring and implementation, will also be essential.

Karachi | ReNews Pakistan
The State Bank of Pakistan (SBP) has revised its housing finance regulations to simplify property documentation requirements and standardise the procedures banks follow when securing loans against residential properties.
The changes were introduced through a circular dated October 9, 2026, amending Prudential Regulation HF-7, which governs property title documents and security arrangements for housing finance. The central bank said the amendments were intended to facilitate customers obtaining housing loans.
Under the revised framework, banks and development finance institutions (DFIs) must collect only the property title and ownership documents specified in the SBP’s prescribed list to secure the financing. After receiving these documents, the lender must provide the borrower with a signed acknowledgement identifying each document submitted.
The acknowledgement gives borrowers a written record of the property papers held by the lending institution, making the document submission process clearer.
The revised regulation retains the requirement that a financed house, apartment or plot be mortgaged in favour of the bank or DFI through an equitable or registered mortgage. However, for housing loans of up to Rs5 million, lenders may provide financing by recording a lien against the property with the relevant land-record authority. This creates an alternative security arrangement within the specified financing limit.
The circular also permits renewable-energy financing without security or against the installed equipment, including solar panels, inverters, batteries and related assets. Banks and DFIs have been directed to comply with the revised regulation, while other existing instructions remain unchanged.
Business Recorder’s October 11 report additionally states that housing finance may be extended against a Green Property Certificate issued by the Punjab government, or an equivalent certificate from a competent authority in another province. According to the report, these certificates verify title, ownership and possession, removing the requirement for additional ancestral, historical or separate ownership documents for certified properties.