The Securities and Exchange Commission of Pakistan (SECP) has highlighted the potential of regulated Real Estate Investment Trusts (REITs) to bring more property-related activity into the formal economy and strengthen connections between real estate and the country’s capital markets. Speakers at an SECP Talk Series session in Islamabad said the growth of the sector would depend on transparent property valuations, effective governance, simpler tax rules and stronger investor confidence. The discussion focused on how REITs could provide structured investment opportunities, attract private capital and support the development of commercial property and infrastructure. Participants also emphasised that regulatory clarity and reliable disclosures would be necessary to encourage broader participation in Pakistan’s real estate investment market.
SECP Commissioner Imtiaz Haider, who welcomed participants at the session, said REITs could help mobilise private investment for infrastructure projects such as motorways, bridges, energy parks and logistics hubs. He also suggested exploring the use of REIT structures to unlock value from existing public assets and finance development initiatives. Such arrangements could provide an alternative mechanism for attracting investment into property and infrastructure without relying exclusively on conventional funding sources. By connecting income-generating real estate assets with capital market investors, regulated REITs can create opportunities for investment through formally structured schemes. Their potential contribution, however, depends on suitable assets, commercially viable projects and regulatory arrangements that protect investors while supporting sustainable sector development.
Presentations delivered during the session showed that Pakistan had 29 registered REIT schemes by March 2026, with the aggregate fund size reaching Rs173.1 billion in December 2025. The figures indicate that the domestic REIT sector has developed into an established part of the country’s investment landscape, although further expansion would require greater investor participation and a broader range of investment opportunities. International comparisons highlighted the scale of the industry globally, where 1,021 listed REITs had a combined market capitalisation of $2.04 trillion at the end of 2024. These figures demonstrated the substantial role REITs play in international property investment markets and provided a reference point for discussions about the potential for growth in Pakistan.
Zahid Latif Khan, chairman of ISE REIT Management Company Limited, discussed the global REIT market and presented ISE Towers Rental REIT, valued at Rs5.67 billion, as a local example. He also outlined potential opportunities for rental, developmental, hybrid and parking REITs in Islamabad and Rawalpindi. These different structures can serve varying investment purposes, from generating income through rental properties to financing the development of real estate projects. Parking facilities and other commercial assets may also offer opportunities for specialised schemes where the underlying properties can generate revenue. The discussion highlighted the importance of identifying suitable assets and creating investment structures that can attract capital while maintaining transparent operating and financial arrangements.
Muhammad Ejaz, chief executive of Arif Habib Dolmen REIT Management Limited, presented Dolmen City REIT and Globe Residency REIT as examples of Pakistan’s existing REIT market. He reported that Dolmen City REIT had a market capitalisation of Rs86.88 billion as of September 30, 2026, while occupancy at both properties exceeded 97%. These figures illustrated the scale of the cited investment and the reported occupancy performance of the properties. Ejaz also called for rationalising property transfer duties and taxes and reviewing investment limits to support the sector’s expansion. Such changes could influence the cost of property transactions and the ability of REIT managers to attract investors, structure new schemes and expand their portfolios. The discussion placed tax treatment and investment restrictions among the issues requiring attention if the sector is to achieve broader growth.
Speakers also stressed that investment through REITs does not guarantee returns or liquidity. Performance depends on the quality and value of the underlying properties, the structure of individual schemes and prevailing market conditions. Independent valuations, effective trustee oversight, clear disclosures and greater investor awareness were identified as essential measures for strengthening confidence in the sector. These safeguards are particularly important because property investments can be affected by changing rental income, occupancy levels, financing costs and market demand. Transparent reporting and appropriate governance arrangements can help investors understand the risks associated with individual schemes and make informed decisions rather than assuming that real estate-backed investments provide assured income or capital appreciation.
The session was attended by SECP Chairman Dr Kabir Ahmed Sidhu, Commissioners Imtiaz Haider, Muzaffar Ahmad Mirza and Ali Farid Khawaja, alongside business leaders, students and lawyers. The event concluded with a question-and-answer session, followed by the presentation of commemorative shields to the speakers. The discussion underscored the potential role of regulated REITs in formalising Pakistan’s property market, directing private investment towards commercial assets and supporting infrastructure development. However, progress will depend on improvements in taxation, valuation practices, governance and regulatory clarity, as well as sustained efforts to educate investors about the benefits and risks of participating in the market.
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