National Real Estate News

The Punjab government has approved Rs 6.881 billion for the revised second phase of the MPA Hostel in Lahore, a facility intended to provide accommodation for members of the provincial assembly.

The Provincial Development Working Party (PDWP) approved the scheme at its 13th meeting on Friday, chaired by Planning and Development Board Chairman Dr Naeem Rauf. The hostel project was among development schemes approved across sectors under a package valued at Rs 126.668 billion.

The latest approval raises the project’s estimated cost by about Rs 584 million from the Rs 6.297 billion approved for the revised Phase II scheme in April 2025. The available reports do not specify what changes or additional work account for the revised estimate, nor do they give a new completion date.

The hostel scheme is part of wider development and modernisation work connected to the Punjab Assembly. In June, the Associated Press of Pakistan reported that Rs 2.52 billion had been proposed for the hostel project in the 2026–27 budget year; that figure was a proposed annual allocation, while the Rs 6.881 billion approved by the PDWP is the revised total cost of the scheme.

Other projects in Friday’s package included a Provincial Traffic Management and Command Centre at Qurban Police Lines in Lahore, a 50-bed hospital in Bhurban, and infrastructure improvements in multiple cities. The scale of the package places the hostel expansion among a broader set of provincial development priorities.

The Punjab Provincial Development Working Party (PDWP) has approved two revised development schemes for Murree with a combined estimated cost of Rs5.57 billion: a 50-bed hospital in Bhurban and the remodelling of Jhika Gali Chowk.

The approvals were made at the PDWP’s 13th meeting, chaired by Planning and Development Board Chairman Dr Naeem Rauf. The hospital scheme was approved at Rs1.507 billion, while the road project was approved at Rs4.063 billion. Together, the Murree schemes are part of a wider package of 19 development projects approved at an estimated cost of Rs126.668 billion across Punjab.

Hospital plan aims to expand local healthcare
The Bhurban project is intended to establish a 50-bed hospital in the hill station. Its approval comes amid wider efforts to improve public services in Murree, a major tourist destination that sees heavier demand during holiday and peak travel periods.
A provincial briefing earlier this year also included a 50-bed Bhurban hospital in the Murree Development Plan. The government’s programme covers municipal services, road rehabilitation, tourist facilities and other improvements in Murree and adjoining areas.

Jhika Gali work targets congestion and access
The PDWP approved the revised scheme for remodelling Jhika Gali Chowk at Rs4.063 billion. The junction is an important point in Murree’s road network, and previous reporting on its development plan described proposed widening and additional slip lanes towards Barian Road and Kohala Bridge. The work was intended to ease traffic congestion and address slope stability concerns.

The revised approvals add to Punjab’s ongoing development activity in Murree, where road connectivity and public amenities are among the stated priorities of the broader development programme. The latest reports confirm the approved costs, but do not specify completion dates or a construction timetable for these two schemes.

The Punjab Central Business District Development Authority (CBD Punjab) has announced plans to expand its urban development activities to Faisalabad, signalling a potential new phase of commercial infrastructure development and investment opportunities in the province's major industrial city.

In a recent promotional update, the authority revealed that it was preparing to introduce its urban development model in Faisalabad, describing the proposed expansion as a new chapter in the city's development. CBD Punjab also released a Launching Soon announcement, indicating that further information regarding the initiative is expected to be made public. The proposed development would extend the authority's activities beyond Lahore, where it is already undertaking major urban development projects aimed at promoting organized commercial growth, modern infrastructure and investment-oriented business environments.

The Faisalabad announcement forms part of CBD Punjab's broader strategy to establish planned business districts in major urban centres across the province. Earlier, CBD Punjab Chief Executive Officer Imran Amin stated that the authority was undertaking feasibility studies and strategic planning for potential developments in Faisalabad, Rawalpindi, Gujranwala, Sialkot, Multan and Bahawalpur. The expansion programme aims to identify suitable locations for modern commercial districts, encourage private-sector participation and support economic activity through planned urban infrastructure. Such developments could provide opportunities for commercial real estate investment, office spaces, business facilities and supporting services, subject to the scope and approvals of individual projects. In Faisalabad, a major centre of Pakistan's textile manufacturing and industrial activity, the proposed initiative could complement existing economic activities by introducing additional planned commercial infrastructure and potentially supporting business expansion.

CBD Punjab has already been implementing urban development initiatives in Lahore, including CBD Quaid District and NSIT City, which are part of its wider programme to develop modern commercial and technology-oriented urban spaces. These projects represent the authority's approach to integrating business activities with planned infrastructure and investment opportunities. The proposed Faisalabad expansion suggests an intention to apply aspects of this development model to other cities, although the scale, design and specific components of the new initiative have not yet been announced. The authority's previous statements regarding feasibility assessments indicate that site selection, infrastructure requirements, land-use planning, financial viability and potential investment arrangements are among the considerations relevant to expanding business district developments across Punjab. However, no project-specific findings or approved development framework for Faisalabad have been disclosed in the latest announcement.

Despite the promotional launch, CBD Punjab has not confirmed the exact location, total land area, estimated investment, approved master plan, development components or construction schedule for the proposed Faisalabad project.The authority has also not announced a formal construction commencement date or confirmed that any new business district in the city is operational. Consequently, the initiative remains at the announcement and preliminary planning stage, with its eventual implementation subject to further disclosures, feasibility assessments, regulatory approvals and financing arrangements. For Faisalabad's real estate and construction sectors, the announcement signals a potential future addition to the city's commercial development landscape, but its actual impact on property investment, business infrastructure and urban growth will depend on the details of the project when formally unveiled by CBD Punjab.

The Federal Constitutional Court (FCC) has directed the Capital Development Authority (CDA) to examine and settle all outstanding land compensation and rehabilitation claims within six months, emphasizing that the authority cannot withhold legally determined payments due to administrative delays or financial constraints. The court ruled that the CDA, established under the CDA Ordinance, 1960, must exercise its powers strictly within the statutory framework and cannot grant or deny benefits beyond those permitted by law. The judgment follows longstanding disputes involving unpaid compensation, delayed plot allotments and incomplete development of acquired sectors in Islamabad.

A two-member bench, headed by Chief Justice Aminuddin Khan and comprising Justice Ali Baqar Najafi, issued the directions while hearing petitions arising from Islamabad High Court judgments delivered on October 30, 2024, and June 14, 2021. The cases involved landowners, affected persons and plot allottees seeking compensation and rehabilitation benefits. According to the court record, approximately Rs 8.0224 billion in compensation claims remain outstanding, while 10,739 plots are awaiting allotment. One of the petitions concerned Islamabad's Sector E-12, where allottees have been awaiting development and physical possession of their plots since 1989.

The FCC directed the CDA to provide affected claimants an opportunity for a hearing, determine their lawful entitlements within six months and implement the decisions without unnecessary delay. The court clarified that legally finalized acquisition awards must govern compensation rights, while subsequent awards or review orders would be enforceable only if their statutory validity is established. It further ruled that rehabilitation benefits, including alternative plot allotments, could only be granted where supported by valid legal entitlement. Neither the CDA nor the federal government can modify these rights through administrative decisions inconsistent with the governing law.

Reaffirming the constitutional protection of property rights under Articles 23 and 24 of the Constitution, the FCC observed that private property may be acquired for public purposes only in accordance with the law and with the safeguards prescribed by legislation. The court emphasized that the CDA's land acquisition and compensation powers are regulated by Sections 25 to 32 of the CDA Ordinance, 1960, along with applicable rules and regulations. It stressed that financial limitations, internal procedural difficulties and administrative delays cannot justify indefinite non-payment of compensation that has been lawfully determined. The ruling establishes a six-month deadline for resolving pending claims while reinforcing the statutory obligations of the authority toward affected landowners and allottees.

More than 340,000 kanals of Auqaf land in Khyber Pakhtunkhwa are missing from the department’s official records, even though administrations in 20 districts have reported a total of 407,374 kanals and eight marlas. The Auqaf Department’s own records, by comparison, list only around 67,000 kanals across the province.
The significant discrepancy has raised questions about the recording, monitoring and protection of public land in the province. Details obtained from district administrations indicate that the reported area of Auqaf land is several times greater than the amount recorded by the department.

Government sources claim that influential individuals have occupied valuable land that is missing from the records for several years. They say the situation has left land worth billions of rupees outside government oversight. However, the report does not provide a district-by-district account of the alleged encroachments or clarify the land’s current legal status.

According to documents, information on Auqaf land was collected from 20 districts. Mardan reported the largest area, with 45,462 kanals and 16 marlas. The report did not include figures for the other districts. The report also provided no details about the reasons for the discrepancy or any formal action or government decision to identify the land and verify its ownership. The figures point to the need for a comprehensive survey of Auqaf properties, reconciliation with district records and a review of the department’s official entries.

Khyber Pakhtunkhwa Governor’s Adviser on Law, Labour and Inter-Provincial Coordination Amir Javed has directed the Workers Welfare Board (WWB) to ensure transparent allotment of residential flats, remove encroachments from its properties and accelerate the digitisation of official records. The directives were issued during his visit to the board’s headquarters in Peshawar, where officials briefed him on landholdings, residential facilities, ongoing development projects and welfare initiatives in the presence of Labour Secretary Abdul Basit. Emphasising the importance of workers’ housing and improved living conditions, the adviser said public resources must be managed in accordance with established rules, merit and transparency.

During the briefing, officials informed the adviser that the Workers Welfare Board owned approximately 2,495 kanals of land across Khyber Pakhtunkhwa and had a total of 2,056 residential flats. Of these, 192 flats were currently occupied, while 496 were ready for allotment. The remaining 1,368 flats had yet to be completed or made available for occupation. Reviewing the housing allocation process, Amir Javed made it clear that direct allotments would not be permitted and that all residential units must be allocated strictly under the prescribed rules and regulations. He also called for continuous monitoring of housing schemes and property records to prevent irregularities and ensure that residential facilities reach eligible workers.

Expressing serious concern over encroachments on the board’s properties, the adviser directed officials to remove all unauthorised occupations within one week. He observed that regular monthly inspections could have prevented illegal occupation and criticised the lack of effective administrative action over the previous three years. Referring to 60 residential quarters sealed the preceding week, he instructed board officials to prepare an effective legal defence for the forthcoming court proceedings. He further stressed that stronger property management, regular inspections and transparent documentation were essential to protecting public assets and preventing future disputes over land ownership and residential allotments.

The adviser also directed the board to expedite record digitisation, improve educational and healthcare services and strengthen welfare support for registered workers and their families. He called for better monitoring of scholarships, improved facilities for workers’ children, expanded vocational training opportunities for women and timely payment of marriage and death grants. Officials were also instructed to review the board’s liabilities and expenditure, improve financial discipline and examine relevant labour laws, including provisions concerning the retirement age of 60 years. Amir Javed emphasised that administrative accountability and effective management of public resources were necessary to ensure that housing and welfare benefits reached deserving workers without unnecessary delays.

The Sindh High Court (SHC) has directed the Karachi mayor to take immediate and effective measures to recover approximately 25 acres of valuable public amenity land in Orangi Town, expressing serious dissatisfaction over the Karachi Metropolitan Corporation’s (KMC) failure to address illegal allotments, encroachments and unauthorised land conversion. A two-member constitutional bench headed by Justice Riazat Ali Sahar issued the directions on Thursday while hearing petitions concerning land located in Sector 16, Block-I, Orangi Town. According to the approved layout plan, the property was originally reserved for a Norwegian school and technical institute, along with football and hockey grounds for students. However, the petitioners alleged that land grabbers had occupied the property, subdivided it into residential plots and obtained illegal leases in collusion with government officials.

The court observed that an inquiry committee constituted following its September 2024 directions had confirmed serious illegalities and irregularities in the issuance of leases for the land, which was designated exclusively for public purposes, particularly educational and healthcare facilities. Despite the committee’s recommendations for immediate restoration and legal action against those responsible, the bench found that KMC had failed to demonstrate meaningful progress. The court noted that the measures undertaken by municipal authorities had largely remained limited to official correspondence and procedural formalities. During the proceedings, KMC officials acknowledged that civil lawsuits against the leaseholders had been filed only three days earlier, while no criminal or departmental proceedings had been initiated against the individuals or officials allegedly involved.

Expressing strong displeasure over the prolonged administrative inaction, the bench observed that the delay raised concerns about possible undue protection being extended to beneficiaries of illegal land transactions and public officials involved in facilitating them. The court emphasised that public amenity land is held by government institutions in trust for the community and cannot lawfully be transferred, converted or utilised for private commercial or residential purposes in violation of its designated use. It further observed that the unauthorised conversion of land reserved for educational and healthcare facilities undermines public welfare and adversely affects the rights and legitimate interests of local residents.

The SHC directed the Karachi mayor to personally supervise the matter, pursue the cancellation of illegally issued leases and ensure recovery of the occupied land for its original public purpose. The bench also ordered the initiation of appropriate civil, criminal and departmental proceedings against individuals and government officials found responsible for illegal allotments, leasing, occupation or misuse of the property, without extending preferential treatment based on official status or influence. The mayor was instructed to submit a comprehensive compliance report, supported by documentary evidence, within 30 days, detailing the measures taken for land recovery and legal proceedings. The court adjourned further hearing until December 15.

The Securities and Exchange Commission of Pakistan (SECP) has urged businesses to consider fire and property insurance to protect their assets from unexpected damage and reduce the financial impact of potential losses.

The regulator organised an awareness session in collaboration with the Rawalpindi Chamber of Commerce and Industry (RCCI) at the chamber’s premises. Business owners, traders and industrialists attended the event, which focused on the risks posed by fire incidents and the role of insurance in helping businesses manage them.
Participants were told that the effects of a fire can extend beyond damage to buildings and equipment. Business closures, lost income and disruptions to employees’ livelihoods can also follow an incident, making fire prevention and adequate insurance coverage important parts of business preparedness.
The session covered protection for commercial properties, machinery, equipment and inventory. Insurance industry representatives explained available fire and property insurance products, policy considerations, coverage options and the claims settlement process.
Speakers also discussed business interruption coverage, which can help companies recover financially after insured losses disrupt their operations. Participants were briefed on Takaful as a Shariah-compliant alternative to conventional insurance and took part in a question-and-answer session on products, coverage and claims.
The initiative is part of the SECP’s efforts to improve insurance awareness and encourage wider coverage among businesses, particularly small and medium-sized enterprises. The regulator said the effort aims to strengthen financial preparedness and help businesses protect their assets and maintain operations after unexpected losses.

A Senate sub-committee has raised serious concerns over the reported establishment of 27 allegedly illegal housing societies on land belonging to Jammu and Kashmir State in Lahore, where residential plots are reportedly being sold to unsuspecting citizens. The matter came to light during a visit led by Nasir Mahmood Butt, Convener of the Senate Standing Committee on Kashmir Affairs, Gilgit-Baltistan and Frontier Regions, along with Senators Naseema Ehsan and Nadeem Bhutto. The delegation inspected state-owned properties in Sultanpura, Rehmanpura and Naulakha Bazaar to assess their legal status, management and protection.

According to an official statement, several housing societies have allegedly been developed on state-owned land without lawful authorisation, while residential buildings have also been constructed on the disputed properties. The committee expressed concern that many buyers may be unaware of the actual ownership status of the land, potentially exposing them to legal disputes, financial losses and fraudulent property transactions.

During the inspection, relevant authorities briefed the delegation on property records, administrative affairs, rental income, unauthorised occupation and encroachments. The committee stressed the need for a comprehensive investigation into the legal status of the 27 housing societies, verification of land ownership documents and examination of plot sale and purchase records to identify possible irregularities and protect the interests of affected citizens.

The committee emphasised that Jammu and Kashmir State properties are valuable state assets requiring effective protection, transparent administration and proper regulatory oversight. Members called for stronger measures to prevent illegal construction, unauthorised land transactions and further encroachments, while ensuring that citizens are protected from potential property fraud and legal complications.