On Wednesday, November 4, the federal government said it has taken possession of One Constitution Avenue in Islamabad and will convert the tower into a five-star hotel. The announcement ends a long dispute for the owners and residents of the building. It also carries lessons for anyone who buys an apartment in Islamabad. This guide sets out what the government says, what is still unclear and how to protect yourself before you buy.
What Was Announced
- Interior Minister Mohsin Naqvi said the government is now legally in possession of the building after cabinet approval. He said that CDA already held possession in official records.
- He said the building will become a five-star hotel “in the coming months.” The government plans to hire a multinational firm to value the building and to seek an agreement with a large hotel chain, per Dawn and Daily Pakistan.
- The federal cabinet approved the findings of a joint investigation team (JIT). The prime minister had formed the team to examine the project.
- A CDA official will manage the building after the government dissolved the residents’ committee, per PhotoNews.
What the Government Says the JIT Found
Planning Minister Ahsan Iqbal said the JIT report found serious irregularities, manipulation and fraud, according to Minute Mirror. The reports describe these points:
- The project won approval as a five-star hotel about two decades ago.
- It later turned into residential apartments and commercial space.
- The JIT alleges a manipulated bidding process and relaxed rules that benefited the developer.
- Iqbal said the apartments were sold through an unlawful process. He also said the project took the name “One Constitution Avenue” for marketing.
These are allegations from the government’s investigation. The reports do not carry a response from the developer. Treat them as one side of a dispute that may still go through the courts and NAB. Milkiyat reports that the ministers recommended NAB action.
What It Means for Apartment Owners
Iqbal said affected investors will receive their principal back, adjusted against KIBOR so they do not lose out. The Nation reports that the cabinet approved compensation for the owners the decision affects. Earlier, the Islamabad High Court upheld the decision on the building, and residents faced evictions in May. The Express Tribune also carries a link to a detailed IHC verdict that says buyers have no legal claim to ownership.
Many questions remain open:
- The reports do not say who qualifies for compensation.
- They do not say when payments will start.
- They do not explain how the government will treat commercial unit owners.
- They do not say how the building will be valued, or when the hotel will open.
Owners should ask the authorities for written confirmation of their status and the compensation process. They should also speak to a lawyer.
Why This Matters for Every Apartment Buyer
The case shows a simple risk. A building can look complete, popular and well-marketed, yet rest on an approval that later fails. If the approved use of the land differs from what the developer sold, buyers carry the risk.
The case also bears on the wider market. Naqvi said Islamabad has a severe shortage of hotels. In October, CDA’s auction of five hotel plots drew no bidders, as our guide to the CDA auction explains. Hotels, apartments and commercial space compete for the same scarce city land.
Apartment Due Diligence Checklist
- Ask what use CDA approved for the land. Confirm it in writing.
- Ask for the lease or allotment terms and the bidding history behind the plot.
- Request the approved building plan and every revision. Check that your unit matches it.
- Ask whether CDA approved any change of use, such as hotel to apartments.
- Check for court cases, inquiries or notices on the project.
- Confirm that your sale or sub-lease can be registered in your name.
- Verify the project’s name and address claims with CDA.
- Ask a property lawyer to review the file before you pay.
- Pay by bank transfer, and only after verification.
Our guides on how to verify a CDA allotment and the cost of buying property in Islamabad cover the file checks and the tax side.
Red Flags in Apartment Projects
- The brochure shows a hotel or mall, but the units are residential.
- The developer cannot show approval for the change of use.
- The seller offers a unit with no registered sub-lease.
- The project’s name suggests an official address that the building does not hold.
- Marketing promises returns or possession dates with no written terms.
Read our guide on how to spot a fake housing society, and our update on the latest CDA notices to illegal housing schemes. Also read how to choose a residential realtor.
Frequently Asked Questions
What did the government announce about One Constitution Avenue?
It said it has taken possession of the building and will convert it into a five-star hotel within months.
Will owners get compensation?
Ministers said yes. Iqbal said investors would get their principal back, adjusted against KIBOR. The reports give no payment date.
What did the JIT allege?
It alleged a manipulated bidding process, relaxed rules and an unlawful sale of apartments. These are the government’s claims.
Does this mean other Islamabad towers face the same risk?
No report says so. Still, verify the approved use and the title of any tower before you buy.
Next Step
Thinking about an apartment in Islamabad? Bright Homes helps buyers check approvals and documents before they commit. Browse the properties page or contact the team today. This guide is general information, not legal advice.
Related Reading
- CDA Auction: Hotel Plots and Petrol Pump Sites
- Verify a CDA Plot Allotment
- Cost of Buying Property in Islamabad
- Best Residential Realtors in Islamabad
