LEGAL

IHC Rules Buyers of One Constitution Avenue Apartments Have No Ownership Rights

Islamabad High Court rules buyers of One Constitution Avenue apartments have no ownership rights, citing lease violations and irregularities.
2026-05-04
IHC Rules Buyers of One Constitution Avenue Apartments Have No Ownership Rights

The Islamabad High Court has ruled that buyers of apartments in the high-profile One Constitution Avenue project do not hold legal ownership rights, delivering a major setback to investors in one of the capital’s most prominent real estate developments.

The court upheld the decision of the Capital Development Authority (CDA) to cancel the lease of the building, citing serious violations of the original agreement. The project, initially approved as a five-star hotel, was later converted into residential and commercial units—an alteration deemed unlawful.

According to the court, since the lease itself has been cancelled, any sale or transfer of apartments under that lease cannot grant valid ownership rights to buyers. This means that individuals who purchased units in the building are not recognized as legal owners under the law.

However, the ruling also acknowledged the plight of the buyers, many of whom invested significant amounts in good faith. The court indicated that affected individuals may be compensated, and the government is expected to formulate a mechanism to address their financial losses.

The One Constitution Avenue project has long been embroiled in legal controversies, including allegations of misuse, lease violations, and regulatory failures spanning over two decades. The latest verdict reinforces the importance of strict adherence to approved development plans and regulatory frameworks.

Legal experts say the decision could have broader implications for Pakistan’s real estate sector, particularly for projects that deviate from their original approvals. It also raises concerns about due diligence and regulatory oversight in large-scale urban developments.