Ayesha Saba

Pakistan's real estate sector, a key driver of urban development and economic growth, faces trust deficit due to unethical marketing and lack of transparency. Adopting ethical marketing practices is vital to rebuilding investor confidence, fostering sustainable growth, and ensuring a fair business environment, reports WealthPK.

Hammad Ali, a real estate analyst at Rawaha State and Builders, said trust deficit stems largely from deceptive practices, including misleading advertisements, overpromising on project timelines, and fraudulent schemes involving fake documentation. This has led to hesitation among the investors, particularly those from overseas, who are wary of scams and lack of regulatory oversight.

The issue, he explained, not only erodes confidence in individual projects but also casts a shadow over the entire industry, limiting its potential to attract long-term investment and economic stability. This lack of trust particularly affects overseas Pakistanis and foreign investors, who often perceive the sector as risky due to these misleading practices.

Lack of regulatory oversight exacerbates the problem. He suggested that implementing a robust regulatory framework is crucial to address these issues. Such a framework should include strict penalties for developers and marketers who engage in deceptive practices.

A centralized authority to verify and approve marketing campaigns could ensure that the entire promotional material aligns with the actual features of the projects. Furthermore, the developers could be required to disclose the essential details such as project approvals, ownership rights, and realistic timelines before launching marketing campaigns, he maintains.

Adoption of technology could also play a transformative role in improving transparency. Verified online platforms that feature authentic listings and reviews can empower buyers to make informed decisions. Such platforms would act as a bridge of trust between developers and buyers, ensuring that the information provided is both accurate and reliable.

He also advocated public awareness campaigns to educate buyers about common red flags in real estate marketing. Providing guidelines on evaluating marketing claims and verifying project details could prevent buyers from falling victim to unethical practices.

"Ethical marketing is not just a moral imperative; it is essential for the sector's long-term growth. Rebuilding trust through transparency, regulation, and accountability will not only attract investors but also enhance the real estate sector's credibility. By prioritizing ethical practices, Pakistan's real estate industry can unlock its full potential as a driver of economic progress and urban development," remarked the Rawaha State and Builders analyst.

Credit: INP-WealthPk