Separate real estate regulatory body sought

Updated June 26, 2019

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ISE REIT proposes supportive framework for development including simplification of SEC laws. — Dawn/File
ISE REIT proposes supportive framework for development including simplification of SEC laws. — Dawn/File

ISLAMABAD: The Islam­abad Stock Exchange REIT Management Company (ISE REIT) on Tuesday demanded the establishment of regulatory authorities at federal and provincial levels to monitor real estate sector and encourage construction activities across the country.

Addressing the press conference here, ISE REIT Board of Directors Chairman Zahid Latif Khan highlighted the issues faced by the real estate investment trust (REIT) sector and proposed supportive framework for its development including simplification of Securities and Exchange Commission laws, policy reforms and balanced tax approach to attract new investment in the property equity instruments.

The ISE Towers REIT was established as Non-banking Finance Company in January 2016 after the merger of country’s three stock exchanges.

ISE REIT plans to launch REIT scheme in Islamabad in the near future, mainly in hotel industry in view of its shortages in the federal capital.

He said that there were only a handful REIT companies in the country because of over regulation and lack of conducive environment in this regard.

With stringent FATF requirements and the government’s resolve to bring the unregulated businesses in the system, most of the undeclared wealth parked in real estate will be invested in the regulated sectors.

Published in Dawn, June 26th, 2019