The Securities and Exchange Commission of Pakistan (SECP) has proposed a series of regulatory reforms aimed at promoting Real Estate Investment Trusts (REITs) and providing greater flexibility to real estate investment schemes.
The proposed amendments seek to ease certain investment restrictions, expand the investor base, and support long-term investment in Pakistan’s real estate sector.
Under the proposed reforms, the SECP plans to reduce the minimum income requirement from real estate and related assets from 75% to 65%.
The change would provide REIT schemes with greater flexibility in managing their investment portfolios while maintaining their focus on real estate-related assets.
The regulator has also proposed extending the maximum tenure of loans obtained from sponsors, directors, and related entities from 24 months to 36 months.
The SECP is considering giving rental and investment real estate schemes an additional year to complete their listing requirements.
The proposed extension would provide schemes with more time to meet regulatory requirements and complete the listing process.
Another proposed change would allow real estate schemes to hold vacant land and plots for at least one year, giving investors greater flexibility during property development and investment cycles.
The proposed framework would also allow specified group trusts and employee funds to invest in unlisted real estate schemes.
According to the SECP, this could broaden the domestic investor base and help bring additional capital into Pakistan’s real estate market.
The regulator has further proposed simplifying procedures for acquiring properties from government bodies and development authorities. The measure could make it easier for REIT schemes to secure suitable properties for investment and development.
The SECP said the proposed reforms are aimed at encouraging long-term investment, improving market transparency, and strengthening Pakistan’s real estate investment ecosystem.
The regulator has invited stakeholders and other interested parties to submit their comments and recommendations on the proposed amendments.
The SECP will review the feedback before finalizing the regulatory framework.
