Pakistan’s real estate market worth Rs90 trillion: OICCI report

Pakistan’s real estate market is estimated to be worth around Rs90 trillion, significantly exceeding the value of traditional financial assets including bank deposits, the stock market and mutual funds, according to a report by the Overseas Investors Chamber of Commerce and Industry (OICCI), reported 24NewsHD TV.

The report said 27,542 new companies were registered in Pakistan during fiscal year 2023-24, with the information technology sector accounting for the largest share at 15 percent.

The trading sector accounted for 13.3 percent of new registrations, followed by services at 11.8 percent, while construction and real estate accounted for 10.9 percent.

According to the OICCI, four major sectors collectively represented more than 50 percent of total new company registrations during FY2023-24.

The report highlighted reforms introduced under the SECP’s Real Estate Investment Trust (REIT) Regulations 2022, aimed at making real estate investment more organised and transparent.

The new regulatory framework focuses on simplifying the registration process for real estate investments, while measures have also been introduced to facilitate and expedite the transfer of assets involving Special Purpose Vehicles (SPVs).

The OICCI said regulatory requirements have also been strengthened to improve governance and transparency in the real estate sector.

The reforms mark progress towards making real estate a regulated capital-market asset, with REITs expected to create new investment opportunities for investors.

Reporter: Baseem Iftikhar