You can now invest in Pakistan’s real estate with Rs.10
Pakistan’s first Development Real Estate Investment Trust (REIT) will now allow Pakistanis to invest in real estate on the Pakistan Stock Exhange (PSX) from this week.
Good news for Pakistanis is that you buy shares on Pakistan Stock Exchange for as low as Rs.10/-
The Chief Executive Officer (CEO) of Arif Habib Dolmen REIT Management Limited (AHDRML) Muhammed Ejaz told that from Wednesday, public will be able to buy real estate shares from Pakistan Stock Exchange. Moreover, he added that the entire real estate sector will be converted into REIT model within the next five years.
The CEO also highlighted the notion that Pakistan’s real estate business has been always considered profitable. However, limited to large investors only. Moreover, liquidity is also an issue. With REIT, a property can be bought by multiple people in small units. This works just like shares are bought in Stock Exchange market. Now real estate business will be accessible to larger portion of population and with lower prices.
He said: “If you buy a plot worth Rs. 50 million and need Rs. 1 million, you can’t just take it out. The lack of liquidity and size made the real estate market inaccessible to the average person. The conversion to REITs was used to solve this problem.”
Furthermore, investors and financers in the REIT mode will be at greater ease due to increased transparency, and accountability. This is because the shares will be accessible and visible to the general public in Stock Exchange market. Increased confidence among investors will surely help in increasing investment in Pakistan Real estate business.
CEO stated that “it is critical to recognize that the REIT industry is essentially a real estate investment business. The regulatory regime is changing, and there is a need to strike a balance that allows REITs to operate while also providing a strong system for maintaining discipline, accountability, and transparency.”
The upcoming Development REIT will help bring public money into real estate projects through PSX. This also includes exposure to Foreign Direct Investments.
“Foreign investors wanting to invest in Pakistan’s real estate require a financing vehicle that ensures internal transparency and remits profits; both are provided by REIT. In this regard, I can say that we have succeeded because a prominent Saudi investor has joined us in financing projects through our brand-new Sapphire Bay Islamic Development REIT,” the executive said.
Finally, some good news in times of economic crisis as you can now invest in Pakistan’s real estate with Rs.10! It is hoped that the new real estate model will make the sector more transparent. Also successful in attracting foreign investors.
