CCP Flags Deceptive Practices in Real Estate Sector

The Competition Commission of Pakistan (CCP) has identified misleading advertising, deceptive promotional claims, undisclosed fees and inaccurate statements about project approvals as significant competition and consumer-protection issues within Pakistan’s real estate industry.

The concerns were raised during an Open Hearing organised by the CCP in Islamabad. The session brought together consumers and investors who shared their experiences, while developers, builders, real estate professionals and representatives from government and regulatory institutions provided their perspectives on practices affecting market competition and consumer interests.

CCP Chairman Farid Ahmad Tarar said property investment represents a substantial financial commitment for ordinary citizens. He noted that consumers can face serious consequences when investment decisions are influenced by false promises, misleading advertisements, undisclosed costs or incorrect information about project approvals and features.

He explained that the hearing was intended to identify common and recurring problems, consider the different positions of stakeholders and determine whether certain issues require wider regulatory, policy or advocacy measures.

Held under Section 29(c) of the Competition Act, 2010, the hearing included representatives from NAB, CDA, RDA, FGEHA, the Ministry of Housing and Works, SECP, PPRA, PTA, IPO Pakistan, the Punjab Land Records Authority, ICT Administration and the Office of the District Magistrate.

Representatives of major housing societies, real estate companies and consumers also participated in the proceedings.

Consumers raised allegations concerning deceptive practices by property developers, housing societies and real estate businesses. Industry representatives, meanwhile, presented their views on the concerns and expressed their commitment to complying with applicable laws, including requirements under the Competition Act.

Government and regulatory representatives outlined the responsibilities of their respective institutions and highlighted the importance of stronger coordination between authorities to tackle problems affecting consumers and competitive conditions within the property market.

The CCP will review the views, submissions and recommendations presented during the hearing as part of its ongoing work to formulate an assessment of competition-related concerns in the real estate sector.

The Commission stressed that a healthy and competitive property market depends on reliable and verifiable information, enabling consumers to make informed investment decisions and ensuring that projects compete based on their genuine features and value rather than misleading claims.