KARACHI: In a bid to boost the housing and construction sector, the State Bank of Pakistan has reformed regulations for banks and financial institutions to promote real estate investment trusts (REITs).
A statement released by the central bank read; “In order to further boost activities in these sectors, the SBP has now made changes to certain provisions of existing Prudential Regulations for Corporate & Commercial Banking to encourage enhanced participation and investment of banks/DFIs in the REITs.”
Any company that owns, operates, or finances income-generating real estate by pooling the capital of numerous investors is defined as a real estate investment trust (REIT). Under this, every individual investor earns dividends from real estate investments as per the sum they invested – without having to buy, manage, or finance any properties themselves.
As per the new regulations, by increasing the limit from 10%, the banks/DFI can now invest up to 15% of their equity in the REITs, helping both parties to diversify their investments and generate more capital.
This move is aimed at ensuring transparency through documentation and promotion of revenue generation and good corporate governance practices that will boost the economy.
For news and blogs, visit Graana.com.
MELBOURNE — A new analysis by Deluxe Holiday Homes has highlighted significant shifts in Melbourne's…
ANKARA — A devastating fire at the Kartalkaya ski resort in northern Türkiye claimed the…
As Vietnam heads into 2025, the real estate market presents a dynamic mix of challenges…
Dubai’s secondary housing market is predicted to see robust growth in 2025, with demand for…
As Los Angeles County grapples with the aftermath of some of the most destructive fires…
On Friday, Azam Nazeer Tarar, the Minister for Law and Justice, informed the Senate that…
Welcome to Graana Blog - Pakistan’s Smartest Property Portal!
For more than a decade our intention has been to revolutionise the real estate industry in Pakistan. The same belief drove the vision of our real estate team, Graana where quality beats quantity.
We have introduced an extremely transparent and purposeful portal where we will help you buy, rent or sell your property. A place where you can sit back relax and let us market your projects and listings. We believe we have set new standards for the future of real estate in Pakistan by providing the smartest property portal.
