KARACHI: Real Estate Investment Trusts (REITs) would help broaden investment in Pakistan from local and Gulf-based investors and promote the country as a growth market, said Chairman of the AKD Group, Aqeel Karim Dhedhi. “It is expected to be launched soon,” he added.
Pakistan’s current real estate development was limited and lacked transparency, he said. Real estate market was plagued by a number of problems, which deterred an average Pakistani from investing. Lack of transparency in title verification, difficulty in accessing and comprehending land records, prolonged litigation on property matters, delays in project completion and interruptions in delivery of services kept investment at bay.It was expected that REITs would take care of these issues to a large extent.
“REITs will formalise the real estate sector and allow the general public to participate. It will also allow foreign investors to come to Pakistan knowing that the investment will be closely regulated,” said Dhedhi.
REIT is a developed product internationally and most of the real estate projects are funded through REITs. Among other things, REITs invest in shopping malls, office buildings, apartments, warehouses and hotels in one specific region, state or country. Investing in REITs is a liquid, dividend-paying means of participating in the real estate market.