The Securities and Exchange Commission of Pakistan (SECP) has proposed changes to the country’s Real Estate Investment Trust (REIT) Regulations, 2022, under which agricultural land would not qualify for investment-based REIT schemes.
The proposed amendments, issued through S.R.O. 1440(I)/2026, define investment-based REITs as schemes focused on acquiring real estate for capital gains. Eligible properties would need to be located in metropolitan cities and have the required NOC, approval or permission where applicable.
Hybrid REIT Structure Also Proposed
The proposed framework would allow hybrid REIT schemes to combine investment-based and rental strategies. This would enable a scheme to hold properties while generating rental income alongside pursuing capital gains.
The SECP may also allow an extension of up to one year for listing a rental or investment-based REIT scheme where the applicant provides valid reasons for the delay.
For properties acquired from government departments, government-backed organisations or statutory development authorities, the regulator may accept an irrevocable and legally binding transfer agreement as evidence of compliance with property-transfer requirements, subject to applicable conditions.
Focus on Regulated Real Estate Investment
The proposed changes form part of the SECP’s broader efforts to strengthen the REIT framework and improve transparency and regulatory oversight in Pakistan’s real estate investment market. The regulator has previously highlighted REITs as a mechanism for formalising real estate investment and improving governance and investor protection.
It is important to note that the August 2026 measure is presented as proposed amendments, rather than a completely new standalone law. The final regulatory position will depend on the outcome of the amendment process.
