REITs in Pakistan Explained: How They Work, Tax, Risks and Listed Schemes (2026)

A REIT in Pakistan is an SECP-regulated trust, run by a licensed REIT management company with a trustee holding the assets, that pools money into real estate; listed REIT units trade on the PSX, REITs must distribute 90% of distributable income, and dividends are taxed at 15% for filers and 30% for non-filers.

A REIT (real estate investment trust) lets you own units in a pool of property instead of buying a whole plot or building. In Pakistan, REITs are regulated by the SECP under the Real Estate Investment Trust Regulations 2022, run by licensed management companies, and the assets are held by a trustee. Listed REIT units trade on the Pakistan Stock Exchange like shares.

REIT dividends are taxed at 15% for filers and 30% for non-filers. By August 2026 the SECP had 29 registered REIT schemes, of which six were listed, and a seventh listed in October.

How a Pakistani REIT works

Four parties are involved.

The RMC requirements come from a summary of the 2022 Regulations, notified by S.R.O. 1766(I)/2022 on 26 September 2022 and replacing the 2015 rules. A REIT may hold property directly or through a special purpose vehicle, and its projects must be in Pakistan.

The trustee point matters. In an ordinary housing scheme, the developer holds the land. In a REIT, a licensed trustee does, per the Express Tribune.

Types of REIT

The one-year listing rule for rental and investment-based schemes comes from the SECP's January 2026 press release. The three-year deadline for developmental schemes and the 90% distribution rule were described by Dolmen REIT's chief executive in the Express Tribune.

Before listing, many schemes raise money only from accredited investors, such as banks, companies, insurers and high-net-worth individuals. Ordinary investors usually get in once units list on the PSX.

How big the market is

Counts differ depending on who is counting and when, so here are the figures with dates.

We use the SECP's own numbers where available. The Tribune figure appears to count funds that have actually raised money and been set up, which is narrower than registrations.

The same Tribune piece said REIT projects worth more than Rs2 trillion were under development, including projects at Lahore's Central Business District and with the Ravi Urban Development Authority.

Examples of REITs on the PSX

These are factual examples, not recommendations.

Dolmen City REIT. Pakistan's first REIT, a Shariah-compliant rental REIT owning Dolmen Mall Clifton and The Harbour Front office tower in Karachi. Its manager's fact page lists about 800,000 sq ft of leasable area, 98.5% average occupancy, a fund size of Rs22,237 million and a unit price of Rs39.31 on 25 October 2026. Units were first issued at Rs10.

Globe Residency REIT. ProPakistani reported in December 2022 that it became the first listed developmental REIT, at Rs10 a unit, for an apartment project at Naya Nazimabad, Karachi.

JS Rental REIT. The SECP approved an offer of 53.6 million units, 25% of the scheme, in April 2026. It was the third REIT listed that year.

Naya Nazimabad Apartments REIT. A closed-end developmental REIT. Its offer was 44.06 million units, 15% of the total, with 75% for institutions and wealthy investors and 25% for retail, per ProPakistani.

How REIT returns are taxed

The FBR card does not show a separate line for capital gains on selling REIT units. Ask your broker or tax adviser what rate applies when you sell, because it may differ from the property CGT rate.

Compare that with direct property. A filer buying property pays 1.25% advance tax under 236K and 2.75% on sale under 236C, plus 1% stamp duty in Punjab. REIT units avoid those transfer costs, though you pay brokerage and dividend tax.

REIT vs buying a plot or house

The LTV figure comes from the SBP's 2026 housing finance regulations.

How to buy REIT units

1. Open an account with a PSX-registered broker, who will set up the account where your units are held.
2. Make sure you are on the FBR Active Taxpayers List, so dividends are taxed at 15% not 30%.
3. Search the REIT's ticker on the PSX data portal and read its latest report and NAV.
4. Compare the market price with NAV. A price above NAV means you are paying a premium.
5. For a developmental REIT, read the offer document for the project timeline, sale plan and risks.
6. Place the order through your broker, and keep the contract note.

Overseas Pakistanis should ask their bank and broker whether their Roshan Digital Account can be used to buy listed units.

What is changing in 2026

The SECP is revising the framework. In September 2026, Arab News reported draft amendments that would:

• lower the minimum share of income and assets from real estate from 75% to 65%
• let investment-based REITs hold vacant land and plots
• extend sponsor borrowing from 24 to 36 months
• allow up to one extra year to list where delay is beyond the manager's control

These were proposals for consultation, not final rules. At the October 2026 listing ceremony, SECP chairman Kabir Ahmed Sidhu said the reforms aim to bring more of the sector into regulated structures, per ProPakistani.

Risks to understand

• Market risk. Units can trade below what you paid, and below NAV.
• Development risk. A developmental REIT's return depends on the project being built and sold.
• Concentration. The listed REITs we could identify hold Karachi assets. A Lahore investor gets little Lahore exposure today.
• Thin trading. Some REITs trade lightly, so selling a large holding can move the price.
• Fake "REITs". The SECP says it regulates only REITs among real estate schemes, and that company registration is not a licence to take deposits. Anything sold as a REIT but not listed or registered with the SECP is not one.

Sources