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Has An Ham Id Presentation 2007

This document discusses the prospects of real estate investment trusts (REITs) in Pakistan. It begins with an introduction to REITs, noting that they allow individuals to invest in real estate through stock shares. The document then covers the purpose and objectives of the study, which is to create awareness about REITs as an investment option. It discusses the benefits of REITs for both real estate owners and investors. While REITs could provide opportunities to invest in real estate sectors and diversify portfolios in Pakistan, challenges include lack of regulations and the need to address land issues. The document concludes by recommending steps to establish REITs, such as developing regulations, authorities to oversee the market, and programs

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23 views

Has An Ham Id Presentation 2007

This document discusses the prospects of real estate investment trusts (REITs) in Pakistan. It begins with an introduction to REITs, noting that they allow individuals to invest in real estate through stock shares. The document then covers the purpose and objectives of the study, which is to create awareness about REITs as an investment option. It discusses the benefits of REITs for both real estate owners and investors. While REITs could provide opportunities to invest in real estate sectors and diversify portfolios in Pakistan, challenges include lack of regulations and the need to address land issues. The document concludes by recommending steps to establish REITs, such as developing regulations, authorities to oversee the market, and programs

Uploaded by

kah53
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Prospects of real estate investment trust in Pakistan

Presented By
Hassan Hameed BM-1032

Institute of Business & Technology


(BIZTEK)
Introduction
First of all I like to thank the God almighty who gave me strength to
develop a Thesis on the topic “Prospects of Real Estate Investment
Trust in Pakistan”.

I highly value the help provided and the efforts made during this
research by the faculty members specially the advisors.
 
Investments works as a bridge between savings and economic
growth for which development of efficient financial markets is
essential.
 
Volatile stock market, low return on bank deposits, weakness of U.S $
against major Asian currencies and high real estate prices has
become the serious concerns for the investors.
 
Introduction (Cont.)
 Keeping in view these factors and our stock market
and money market situation it is beneficial for our
country to introduce funds schemes like REIT.
 
 Ministries of government of Pakistan are also
interested to launch a real estate fund so as to offer
another platform for investment for general public.
 
 Unlike property, they are securities and hence are
easy to buy and sell on stock exchanges.
PURPOSE OF STUDY

 This research thesis will provide information about the basic


concept behind Real Estate Investment Trust and about the
benefits.

 Other aspects that will be covered in this course of the study


will be about the launching of this fund in Pakistan its
prospects and the obstacles. 

 This research will provide benefit not only to the real


investors who want to diversify the portfolio but an effort
would be made to find out the methodologies to launch REIT
in Pakistan
RESEARCH OBJECTIVE

 This research study is conducted to create


awareness about the different horizons for
investments.

 This is a type of feasibility report made to create


awareness.
 
 One of the major problems with investors in
Pakistan is that they are not aware of such
investment horizons.
RESEARCH METHODOLOGY

 The method used for this research is dependent


on both primary and secondary data sources, but
it is mainly dependent upon the secondary data
sources.

 Primary data would be gathered through


structured and unstructured interviews.
 
 Secondary sources of data which includes
internet, business magazines, newspapers etc.
REAL ESTATE INVESMENT TRUST (REIT)
Introduction
A Real Estate Investment Trust (REIT) is a company that invests in real estate and its shares are
offered to general public. So, a REIT stock is similar to any common stick that represents
ownership.
With the creation of, it would be possible to trade properties in the stock market since then
they are in the form of corporation or trust.

Special about REITs


A. Real Estate Owners (mainly corporate) 
REITs will allow us greater flexibility and efficiency when it comes to financing.
REITs will allow us to target an unlimited number of individual investors as well.
REITs will contribute to greater liquidity and efficiency within the real estate market.
 
B. Investors
REITs offer individuals the opportunity to invest in real estate at affordable prices, and in a
form that can be readily trade on the exchange market.
Dividends are paid to investors on the basis of income arising from the properties (rents, etc).
 Investment in REITs allows investors to diversify their financial assets, with all the attendant
benefits.
REAL ESTATE INVESMENT TRUST
(REIT) CONT.
 Sectors of Investment
 REIT offers its investors a broad range of alternatives specifically in real estate sub-
sector, including:
 Apartment Communities
 Office Properties
 Shopping Centers and Malls
 Storage Centers
 Industrial Parks and Warehouses
 Lodging facilities, including hotels, motels and resorts
 Health Care facilities
 Natural Resources

 REITs can be a way to play 


 To provide a broad investment horizon in real estate
 To increase the development activities in the country through public sector investment
 To diversify the portfolio of investment
Advantages of REIT

 Expected Revenue Stream


 Earning Transparency
 Total Return
 Hedging against Inflation
 Limited Liability
Conclusion

 A new, more affordable way to acquire property has just opened up


in Asia: Real Estate Investment Trusts (REIT).

 REITs work much like mutual funds. But instead of holding shares (or
units) in a basket of company stocks, investors own a piece of trusts
that invest in a portfolio of properties, mostly commercial buildings
 
 REITs are held by thousands of individual and institutional investors
who collect dividends from rental income while enjoying the
benefits of capital appreciation
 
 In North America and Australia, REITs have long been an option for
ordinary investors seeking relatively stable returns and liquidity.
Conclusion

The Major Problem

 Land mafia
 Absence of laws and regulations for the real state sector

Creating A REIT Portfolio in Pakistan

 With the development of Gawadar port, the prices of land in Baluchistan would also increase due to
development activities
 
 Site areas of Karachi and Hyderabad can also be included in the portfolio of REIT
 
 Since State Bank of Pakistan has stopped giving loans for housing and finance this would definitely
decrease the prices of real estate in the country, thus is an ideal time for investing in real estate by
creating portfolios of property.
 
 With the inflation touching double figures and returns offered by banks below 4%, any investment
opportunity that offers more return would be welcomed by the small investors.
Recommendations

 Establish regulations for the Real Estate Funds


 Establishment of Real Estate Investment Trust in Pakistan
 Establishing a Real Estate regulatory Authority that monitors the price hikes in
real estate and check s for ant speculations
 Develop a rental infrastructure
 A tax exemption model is needed to be implemented in order to manage various
discrepancies
 Need of computerization of land records of the country so that making of
investments in real estate could be safe and sound
 Creating awareness among investors for different investment horizons
 Elimination of Land Mafia
 Creating incentives for large brokerage houses to start this program in Pakistan
like (AKD, Jhangir Siddiqui and Arif Habib Securities)
 Stable law and order situation
 Develop Investors confidence by creating administrative bodies to monitor the
performance of such funds
THANK YOU

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