Gatwala Commercial Hub , Faisalabad is Punjab’s biggest and Pakistan’s second largest mixed use, real estate project. It has a covered area of over 3.1 million sq. ft.

This mega project, designed and developed by Shah Nawaz Associates, is located, at the junction of Canal Expressway and Lahore Sheikhupura Road. The road in front of the GCH project, has an average traffic count of 30 vehicles per minute. become, the city’s next mega center for trade, commerce, industries as well as residential projects.



Common Malpractices in Real Estate

Do you know that 40 percent of the real estate capital gets stuck due to malpractices? Well, no more! Welcome the #NewEra

Real estate is a very remunerative sector in Pakistan. The real estate sector is vast and has extensive potential to boost any country’s economy. In past years, the prices of real estate in Pakistan have risen which makes it one of the safest sectors to invest in.

The real estate sector is now regarded as one of Pakistan’s most lucrative business and investment opportunities, owing to significant advantages such as asset ownership, high returns, and security. 

However, there are several challenges in Pakistan that property owners face. Unlike any other industry, the real estate sector of Pakistan has the issue of malpractices. It occurs as a result of a lack of proper attention to this sector. There are no regulatory authorities in Pakistan to bring transparency and accountability to this sector.

In this blog, Graana.com, Pakistan Smartest Property Portal, will highlight common malpractices to understand the real estate market of Pakistan. 


List of common Malpractices in Pakistan

  1. Honey potting 
  2. In-direct Selling 
  3. Lack of verification 
  4. House Flipping 

Honey potting


honepotting in real estate

(Source: Pinterest)


Honey potting is the concept of luring people through images and details of properties that have been sold or are not available. When a buyer contacts an agent for this property, they respond that it is sold out, but now the agent has a lead.

They’ll bombard this lead with multiple other options from their inventory hoping to strike a deal.

In-direct Selling


indirect selling of houses | malpractices in real estate

(Source: Pinterest)


Indirect selling is the process of selling plot files in the name of getting approved NOCs in a while. This is one of the largest real estate frauds in Pakistan, as this is a way of looting people when they are shown the dream of getting huge profits at a time. 

In this type of fraud, people are duped into believing that the developer is currently undertaking preliminary construction work and the plots are ready for sale. While in reality, no such work is done and it is a mere tactic of selling plot files.

Lack of verification


Fingerprint Scan Security System

(Source: Pinterest)


Due to a lack of regulatory authorities, developers construct residential, commercial, and/or mixed projects without acquiring prerequisites No-objection certificate (NOCs) from the district development authorities.

This resulted in the demolition of these development projects; such as the demolition of Nasla Tower Karachi.


House Flipping


House filipping | Malpratices in real estate

(Source: Pinterest)


There is yet another form of real estate scam that is gradually increasing. In this scam, people who are owners of houses decide on exchanging houses or plots of equal value, instead of money or cash involved. However, this is a major risk that not many are willing to take.

It can be possible that the owner may have forged property papers for a house and pretended to exchange it, with the issue that the rightful owner later claims the property. 


To sum up, before investing in any property project, make sure to do your research and check the credibility of the real estate projects. Risks are always present in the real estate market and you have to address these problems before making any final decision. 


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