So if you've ever tried to figure out how zoning actually works for a mixed use building in Pakistan, you already know it's not exactly straightforward. There's no single office you walk into, get a stamp, and walk out ready to build.

Rather, it is a set of multiple approvals that have been piled up on top of each other, and believe it or not, many people tend to get lost somewhere down the line while following this complex system. Thus, we will just walk through the steps one by one, without getting entangled in any technical terms.

What Zoning Actually Means for Mixed Use Projects

The concept of zoning means that there is a regulation which defines the type of usage of land. Some lands are reserved for the residential purpose, others are designated for the commercial activities, while there are those which are defined as mixed, meaning that there are some limitations for combining both purposes under the same roof.

This information plays an important role for the mixed use projects, since it means that you run three kinds of business premises in one building, which requires you to observe some regulations.

When speaking about Pakistan, one should understand that there are different zoning rules in different cities and even inside those cities according to the different development authorities. There are LDA zones in Lahore, CDA zones in Islamabad, and private housing societies in various cities.

Why Mixed Use Zoning Is a Bit More Complicated

It is simply sufficient to comply with the residential regulations when building a simple residential structure. Similarly, a simple commercial plaza will only require commercial regulations.

However, a mixed-use building requires compliance with both residential and commercial regulations and in a manner that does not conflict one another. In this case, some of the regulations include:

•                    Maximum building heights applicable to that particular zone

•                    Proportion of residential to commercial in terms of percent of the structure

•                    Parking requirements, usually higher in the mixed use than in simple building projects

•                    Regulations on fire safety and emergency exit in cases of mixed use building

•                    Specific setback from the road and surrounding plots

That is why developers always need to have their feasibility study done first before even considering designing the structure.

Step 1: Confirming Zoning Status Before Anything Else

However, before getting on to any designing process, it is absolutely necessary to confirm that the plot of land that you own is zoned for mixed use at all. There are many plots that have either exclusively residential or commercial zoning and construction of a mixed use property can result in legal hassles.

These developers ensure this through:

•                    Master Plan of the Development Authority for that region

•                    Housing society guidelines of the particular region, in case the land is part of a private plan

•                    If there have been any changes or updates in zoning for that region recently

It may take several weeks of time in this regard as well, which seasoned developers usually allow in their schedule.

Step 2: Getting the Building Plan Approved

After zoning is determined, the next major requirement is for approval of the design for the building itself. This is done through plans that detail the layout of residential, commercial, and communal spaces within the building.

Among others, this will generally include such factors as:

•                    Safety and code compliance

•                    Effective segregation of residential and commercial spaces

•                    Elevator and staircase locations

•                    Water, power, and waste disposal system connection

•                    Parking facilities depending on total space

If there is some inconsistency with the original zoning application, the plan is likely to be rejected.

Step 3: NOCs and Additional Clearances

•                    This is the stage where most novices in the field of property develop an inkling of surprise. Mixed use properties require more than one No Objection Certificate, or NOC, from various departments before construction can even commence. The number of these certificates depends on the site location as well as the size of the development. These departments could be:

•                    The environment department, for environmental impact, especially for larger developments

•                    Civil defense and fire safety

•                    The traffic department for buildings located at the main road sites

•                    The utilities department for electricity and water

These departments work relatively independently. Therefore, it will take some amount of patience and coordination to get these certificates sorted out. Experienced developers have knowledge of the various departments that work relatively quickly.

Step 4: Construction Compliance Checks

Approvals do not end when construction starts. The authorities responsible for development carry out inspections throughout the period of construction to ensure that construction is done as per the approved drawings, and not anything else.

 This is particularly important in the case of mixed-use buildings since any unapproved changes made during construction such as converting additional floors into commercial spaces may attract penalties.

Some of the common aspects checked by the development authorities during such inspections include:

•                    Correlation between the approved height and number of floors

•                    The adherence to commercial to residential ratios

•                    Fire safety installations as construction proceeds

•                    Safety in the course of construction in various stages

Step 5: Final Occupancy and Completion Certificate

After the construction work is completed, there still remains an essential task to obtain a certificate for its completion as only then people can safely inhabit the place or conduct any business operation within the premises.

However, without the certificate, from the legal point of view, people should not even live in the building that seems already ready from the exterior point of view. That's why many smaller builders try to avoid this procedure, but it creates numerous difficulties for the purchasers afterwards.

Why This Matters for Investors Thinking About Mixed Use Projects

When considering any property investment opportunity, this entire approval process is actually very useful during the evaluation of such projects.

The project that already has its zoning approved and other permissions arranged will usually progress quicker and more smoothly than one which is still undergoing all those processes.

It is actually important to consider all the newer developments as well. Tycoon Terraces in Bahria Town Lahore is a particular project which is at the moment undergoing the development stage and is being developed by Globe Estate & Builders. It is still under development and, therefore, the early investors can usually get more favorable terms than the later ones.

A Few Tips If You're Looking Into a Mixed Use Investment

• Always ask the developer directly about the zoning status of the land
• Check whether all major NOCs have been secured or are still pending
• Ask for a realistic construction timeline instead of just a marketing brochure date
• Look into the developer's past projects to see how they handled approvals before
• Understand that early stage investment usually comes with better pricing but also requires more patience

Wrapping It Up

The aspect of approvals and zoning may not necessarily be the most intriguing area of real estate but is indeed one of the most crucial ones, especially in case of mixed use buildings that consist of different uses put together in one building.

From confirmation of zoning to obtaining completion certificates, all of these steps have an influence on the process of construction and transfer of the property.

In case of investors that keep track of future projects, an example can be seen in the ongoing development of Tycoon Terraces Bahria Town Lahore that is currently under development by Globe Estate & Builders and in its initial stages.

 The progress of any project through the process of approvals is an indication of when to make an investment.