SECP Registers Three New REIT Schemes in January 2026, Boosting Sector Growth
In a significant development for Pakistan's financial landscape, the Securities and Exchange Commission of Pakistan (SECP) has registered three new Real Estate Investment Trust (REIT) Schemes in January 2026. This initiative underscores the SECP's ongoing commitment to accelerating the growth and formalization of the REIT sector, which is poised to transform the country's real estate market.
Details of the New Registrations
Under the revamped Real Estate Investment Trust Regulations, 2022, the SECP approved two new Rental REIT Schemes and one new Investment-Based REIT Scheme. This brings the total number of registered REIT Schemes in Pakistan to twenty-eight, marking a steady expansion in this asset class.
- Rental REIT Schemes: These are designed to pool funds from investors for investment in rental real estate projects, providing a steady income stream through rental yields.
- Investment-Based REIT Schemes: These enable investors to participate in a fund that aims to earn capital gains from strategic real estate investments, offering potential for long-term appreciation.
Eligibility and Regulatory Framework
Following the recent approval, these REIT Schemes are now eligible to raise funds from Accredited Investors, which include:
- Financial institutions
- Corporates
- Insurance companies
- High net-worth individuals
The recently amended REIT Regulations introduce clearer timelines to promote early listing and strengthen the visibility and positioning of REITs as a viable capital market asset class. Specifically, rental and investment-based REIT schemes are required to be mandatorily listed within one year of the date of transfer of real estate in the name of the REIT Scheme.
Growth and Potential of the REIT Sector
The REIT sector in Pakistan has demonstrated phenomenal growth over the past few years, reflecting an increasing preference for the REIT structure by both issuers and investors. This trend highlights the sector's potential to fundamentally reform Pakistan's real estate sector by:
- Enhancing documentation and formalization
- Improving governance and transparency
- Strengthening investor protection mechanisms
By revolutionizing real estate development, REITs are expected to contribute to a more robust and transparent economy, attracting both domestic and international investment.
Conclusion
The registration of these new REIT Schemes by the SECP is a positive step towards fostering a dynamic and transparent real estate market in Pakistan. As the sector continues to grow, it holds the promise of providing investors with diversified opportunities while driving economic development through better-regulated and more efficient real estate practices.
