Real Estate Investment Trusts in Pakistan (REITs) are investment schemes that own and most often actively manage income-producing real estate. Through such schemes, investors may own, operate or finance Income-generating property across various categories of real estate. A REIT invests in physical real estate and distributes profits from rental income and/or capital gains to its unit holders (shareholders).
The REIT model is structured like a traditional closed-end mutual fund, however, instead of stocks and bonds, a REIT investor owns real estate-backed units that sell like any other units/listed security, enabling the holder of the units to invest directly in real estate.
Types Of REITs Available In Pakistan
- Rental REITs – a scheme that invests in residential or commercial properties for the purposes of generating rental income.
- Developmental REITs – a scheme that invests in the construction or refurbishment of residential, commercial, or industrial properties.
- Hybrid REITs – a scheme that may include a mixed portfolio of rental and development properties.
Benefits Of REITs
From the investors’ standpoint, REITs enable small investors to invest in real estate through a professionally managed entity; avail of higher dividend distribution, and benefit from the relatively safer investment as customer advances and property title resides in Trust. REITs enable a broader investment portfolio and allow risk diversification; provide an easy exit to real estate investors and enable daily pricing as REIT units are tradable on the stock exchange.
Risks Associated With Investing In REITs
Since REIT is linked to the underlying property asset, a decline in the value of the asset and/or its rental capacity will directly impact the REIT’s Net Asset Value (NAV). In addition to interest rates, REIT’s dividend yields may fluctuate based on local rental dynamics, occupancy, footfall and expense levels, a general downward shift in equity market sentiment due to macroeconomic or regulatory drivers, etc. Management quality of the RMC affects returns to the investors/unitholders.
Real Estate Market
The real estate market is pretty much dependent on the market forces, people always consider what meets their needs, wants, and desires; their residential needs reflect comfort, safety, and luxury. If some particular areas meet their standards, people would consider buying residential houses in that specific area. For instance, people most preferably choose areas like DHA, Bahria, PAF, and NHS. This is because, these schemes give a fully luxurious, comfortable, and secure living people mostly desire. And due to that fact, this investment in these areas is always considered profitable and has potential. Bahria Town is a top location these days because of the exceptional development plans and facilities present in the various phases. After the successful ventures in the initial phases, Bahria Town is experiencing expansion in different phases. Various private real estate companies are undertaking projects in residential and commercial areas.
The HASH Mall And HASHI Residency
Hashi Group of Companies; a real estate firm has been working on its projects. These two are two of its exclusive projects that are under construction and are potential investment areas that offer complete transparency and secure investment.
These two construction projects are underway to the completion in some time. Moreover, both of the projects are approved by the Rawalpindi Development Authority (RDA). So, it makes these projects authentic and reliable for any kind of investment. With the top-notch facility and Prime location, Hash Residency and the Hash Mall are premium projects which provide its clients with all facilities under one roof. In-lined with the best facilities and amenities, Hash Residency and the Hash Mall are making a change in the real estate industry.
If you have minimum investment to invest in the real estate area, these projects suit you the best. You can start with as minimum as 8 lacs. With the facile installment plans, you can easily manage to get your residential or commercial unit.
The Hash Real Estate provides commercial property at reasonable rates at a fully secured location. Moreover, with its professional teams, growing corporate culture, and excellent work ethics, it is helping clients put their investments commercial sector in the right direction. Most property firms focus on generating more profits out of their services, while Hashi GOC focuses on client needs and is setting new trends.
To get more information you can reach out to the Hashi GOC office or contact us at
- +92 335 555 1541