The Securities and Exchange Commission of Pakistan (SECP) has proposed changes to the Real Estate Investment Trust (REIT) framework, including a specific exclusion of agricultural land from investment-based REIT schemes.

Under the draft amendments to the Real Estate Investment Trust Regulations, 2022, an investment-based REIT scheme would be designed primarily to acquire real estate for capital appreciation.

The SECP notified the proposed amendments through S.R.O. 1440(I)/2026 issued on Friday.

The draft requires eligible real estate to be located in metropolitan cities and, where applicable, have the necessary no-objection certificate (NOC), approval or permission from the relevant authority.

The proposed rules would also introduce greater flexibility for hybrid REIT schemes by allowing them to combine investment and rental strategies. Such schemes could generate rental income from properties while continuing to hold them as investments.

The SECP has further proposed allowing an extension of up to one year for the listing of a rental or investment-based REIT scheme where the applicant provides valid reasons for the delay.

For properties acquired from government entities, government-backed bodies or statutory development authorities, the regulator may accept an irrevocable and legally binding transfer agreement as meeting the property-transfer requirement, subject to conditions imposed by the SECP.