The Securities and Exchange Commission of Pakistan (SECP) has proposed new REIT rules that exclude agricultural land from investment-based Real Estate Investment Trust (REIT) schemes.
Under the draft amendments to the Real Estate Investment Trust Regulations, 2022, an investment-based REIT scheme will focus on acquiring real estate primarily for capital gains.
The SECP issued the proposed amendments through S.R.O. 1440(I)/2026 on Friday.
The regulator said eligible real estate must be located in metropolitan cities and have the required NOC, approval or permission, where applicable.
The proposed framework would also allow hybrid REIT schemes to combine investment-based and rental strategies. Such schemes could earn rental income from their properties while holding them.
The SECP may also grant an extension of up to one year for listing a rental or investment-based REIT scheme if the applicant provides valid reasons.
For property acquired from government entities, government-backed bodies or statutory development authorities, the SECP may accept an irrevocable and legally binding transfer agreement as sufficient compliance with the property-transfer requirement, subject to conditions set by the regulator.
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