New Law Excludes Agricultural Land from REIT Investment Schemes

Meanwhile, 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.

Key points

• 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.
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• The regulator remarked eligible real estate must be located in metropolitan cities and have the required NOC, approval or permission, where applicable.
• The proposed framework would additionally allow hybrid REIT schemes to combine investment-based and rental strategies.

For context, the SECP issued the proposed amendments through S.R.O. 1440(I)/2026 on Friday. SECP Introduces One-Day Account Opening for Stock Market Investors.

Meanwhile, the regulator remarked eligible real estate must be located in metropolitan cities and have the required NOC, approval or permission, where applicable.

For context, the proposed framework would additionally allow hybrid REIT schemes to combine investment-based and rental strategies. Such schemes could earn rental income from their properties while holding them.

Notably, the SECP may additionally 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 administration 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. Stay Connected with ProPakistani.

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For now, new Law Excludes Agricultural Land from REIT Investment Schemes remains the part of the story worth watching, and further updates are likely as more details are confirmed.