The returns from residential properties have been mostly disappointing both in terms of asset appreciation and rental yield. Does REIT work for investors and will it deliver good returns despite the second and third wave of the pandemic?
SBP amends capital adequacy rules
SBP amends capital adequacy rules
KARACHI:
The State Bank of Pakistan (SBP) has amended capital adequacy regulations by significantly lowering the applicable risk weight (from 200% to 100%) on banks’/ development finance institutions’ (DFIs) investments in Real Estate Investment Trusts (REITs). In a statement on Wednesday, the central bank hoped that it would support the development of real estate sector. REITs are companies that raise funding from the general public and institutions and deploy these funds through investment in real estate properties. “Following the changes in capital adequacy regulations, the banks/ DFIs will now be able to increase their investments in REITs without the need to allocate relatively large amount of capital,” it said.
Pakistan eases restrictions for banks to invest in real estate
Itâs expected to increase construction of houses amid rising demand SAMAA | Bilal Hussain - Posted: Jun 3, 2021 | Last Updated: 4 hours ago SAMAA | Bilal Hussain Posted: Jun 3, 2021 | Last Updated: 4 hours ago
Laborers work on a building construction site in Karachi, Pakistan, Feb. 25, 2016. Photo: AFP
Working at a private company as a sanitary worker, Mukesh was excited to see the Naya Pakistan Housing Scheme that offers cheap loans for people with humble background who donât own a house. He made the efforts and found a house worth Rs3.7 million but the bank paperwork delayed things. When he again inquired about the house, its price had gone up to Rs4.2 million â over 13% increase within a few months.