The Capital Development Authority’s (CDA) most recent auction touted as one of the biggest in Islamabad’s history has ended in a resounding failure. A total of 46 commercial properties, including plots and shops valued at over Rs 125 billion, were put on the block. Yet, due to poor planning, inflexible policies, and a complete lack of consultation with stakeholders, the CDA managed to secure bids for only Rs 19 billion worth of property.
Even these limited sales came at a heavy discount—significantly below prevailing market rates. For instance, Plot No. 13, which fetched Rs 31 lakh per square yard last year, was sold for just Rs 27 lakh this time. Similarly, Plot No. 12, with a market value of Rs 30–31 lakh per square yard, went for only Rs 23 lakh—barely one percent above the reserve price. This massive undervaluation is not due to market forces, but a direct result of CDA’s administrative incompetence and mismanagement.
Recent CDA policies have exacerbated the situation, particularly the sharp and arbitrary hike in transfer fees. A fee of Rs 30–40 lakh on a 500-yard residential plot is unprecedented across the country. At the same time, approval delays for builders’ maps, layout plans, and other documents have created bottlenecks that deter investors. No-demand certificates and ownership indices are often delayed or withheld—frequently requiring bribes to process. Shockingly, properties owned by overseas Pakistanis and local allottees—some of which have changed hands eight to ten times over the last 30–40 years—are now being cancelled on technicalities, forcing owners into prolonged court battles.
The public is subjected to daily humiliation in CDA offices. With the CDA Chairman holding dual roles as Chief Commissioner and Chairman, his focus remains diverted. Prioritizing diplomatic meetings and development projects, he has consistently failed to address the urgent concerns of citizens and stakeholders. This disconnection has had severe consequences.
In protest, Islamabad’s genuine real estate community—comprising builders, developers, and realtors—boycotted the auction. Despite this, the CDA administration pressed on, creating an illusion of success by using dummy bidders and artificially reducing prices. Massive ad campaigns, costing crores, failed to bring in real investors, further exposing the miscalculation of the administration.
It is disingenuous to label this auction a “success” based on the claim that Rs 19 billion was earned from Rs 25 billion worth of property. The reality is that the auction involved assets worth Rs 125 billion, of which barely a fraction was sold—at significant loss.
Responsibility lies squarely with the CDA Chairman, whose disregard for expert and stakeholder advice has cost the exchequer dearly. We openly challenge the Chairman to sit with genuine stakeholders and resolve the pressing issues. We urge the Interior Minister to intervene, facilitate a transparent and fair process, and relaunch the auction within two weeks. With the right approach and inclusive decision-making, we confidently assure sales exceeding Rs 100 billion.
The time has come for Pakistan’s institutions to take serious notice. The real estate sector of the capital city—one of the country’s largest economic engines—cannot afford further mismanagement. Swift, transparent, and corrective action is the only path forward.
