Investment in real estate can be quite rewarding, provided that you are well-aware of basic terms and procedures. In fact, investment in land in Pakistan is, more often than not, considered to be the best form of investment, as it possesses a potential for high returns in a short time. However, before getting involved in any sort of transaction, make sure you are familiar with the basic types of land in Pakistan as per the country’s property laws.
As per usual, we will begin with definitions. If you’ve decided to invest your hard-earned money in land in Pakistan, then you ought to have a clearer understanding of what exactly the term ‘land’ means, according to law. After that, we shall take an in-depth look at different land types in Pakistan.
Let’s get investing!
Defining Land in Pakistan
Before defining the term ‘land in Pakistan,’ you should know the words ‘land’ and ‘property’ are often used interchangeably in Pakistani law, which defines ‘property’ as any asset [tangible or intangible] that is either owned by a person or is gifted to any individual. An asset is said to be tangible when it exists physically while an intangible asset does not exist physically such as intellectual property.
As the land laws in Pakistan suggest, there are two types of property: moveable and immovable. And Pakistan’s property law defines immovable property as:
‘Immovable property’ includes land, buildings, benefits to arise out of land and things attached to the earth, or permanently fastened to anything attached to the earth, hereditary allowances, rights to ways, lights, ferries and fisheries.
Moreover, immovable property or a piece of land does not include:
- Standing timber, growing crops or grass
- Fruits whether in existence or growing in future
- Machinery or equipment on the piece of land
Three Types of Land in Pakistan
As per property law in Pakistan, land is categorised as immovable property and a tangible asset that exists physically. Furthermore, land in Pakistan is divided into three basic categories that have been mentioned below:
- State-Owned Land
- Private Owned Land
- Village Common Land
State-Owned Land
State-owned land in Pakistan is also known as ‘Crown’ land. It is owned by the federal or provincial government and locally known as ‘Sarkari Zameen.’
As per the land laws in Pakistan, this particular type of land can be:
- Granted to individuals for their needs and for earning a livelihood through cultivation or farming which favours both the state and the person’s household. Government has the right to withhold this land any day.
- Used for a number of schemes like cattle breeding, horse studs, chicken farming, etc. Ownership of the land belongs to the government but the individuals who are using it temporarily, are obliged to pay rent against it.
- (In certain cases) Handed over to citizens under colony programmes temporarily, so that citizens can make the land cultivable. After the successful use of land or once the land is cultivable, the ownership is transferred to that individual.
Privately-Owned Land
As per property law in Pakistan, privately-owned land is separate from state-owned land or public property. In fact, the ownership or entitlement of this particular type of land falls under non-governmental entities. Legal owners can use their land for various purposes while following zoning laws. Here are the few basic things you should know about privately-owned land in Pakistan:
- Private owners have the full freedom and rights to sell, gift, exchange or dispose of their land in any manner or to anyone being under the boundaries of property laws in Pakistan. However, the law places some certain restrictions on the sale of rural land to people who are not the residents of the same area.
- Private owners are free to rent their land to anyone and receive annual, monthly or quarterly charges against it.
- This particular category of land is subject to inheritance under the Islamic law which means that the property rights of the land are by default transferred to the legal heirs after the owner’s death.
Common Land
Common land, as the name implies, is shared by collective owners or a whole community. In order to denote common land in the village, you will hear locals using terms such as ‘Shamilat’ or ‘Shamilat Deh,’ which means community land. According to land laws in Pakistan, the features of common land are as under:
- This particular type of land is granted by the government to a settlement for common purposes.
- Shamilat land or communal land is meant to be used for communal purposes such as grazing grounds, firewood collection, graveyards, community buildings, and mosques. Moreover, government schools, dispensaries, playgrounds, ponds, roads, and passages for the movement of cattle [in the village] can also be counted under common land.
This brings us to the end of our guide on the basic categories of land in Pakistan. You can also go over our post on whether or not properties near railway track are worthy of investment.
Oh, if you are a resident of Karachi and wondering which areas are ideal for real estate investment, then do check out our comprehensive area guides on Scheme 33, Gadap Town, Bahria Town, DHA, and Malir Town.
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