Karachi: The Security and Exchange Commission of Pakistan (SECP) has authorised Silk Islamic Development REIT (SIDR), Pakistan’s first Shariah-compliant Real Estate Investment Trust (REIT) in the real estate sector. news sources reported.
Through public-private partnerships, the initiative aims to develop land in Karachi for commercial and residential uses in order to enhance the real estate market.
Furthermore, the Arif Habib Dolmen REIT intends to establish two REITs, one for apartment construction and for commercial development, with the second Silk World Development REIT focusing on the development of villas in Karachi’s port city.
The officials are of the view that under the new REIT the return on investment will be 30% as compared to the current 12% under older REIT.
Previously, REIT had existed for a long time, the REIT sector remained dormant due to the government’s lacklustre interest in the sector. However, the SECP introduced changes in the REIT that brought in the intended flow in the real estate sector, primarily by offering FBR tax exemption to tax evaders who invested in the real estate business. Finance Minister Shaukat Tareen is revising the laws and regulations to make it more appealing for investment.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
