Sindh Real Estate News and Land Insights

Karachi | ReNews Pakistan
The Sindh High Court (SHC) has directed the Evacuee Trust Property Board (ETPB) to immediately unseal the historic Karachi Cotton Exchange building, intensifying a long-running dispute over the ownership and possession of the strategically located property.
A two-member constitutional bench headed by Justice Mohammad Saleem Jessar expressed serious displeasure with ETPB officials for allegedly disregarding an earlier court order concerning possession of the property. The court directed the concerned ETPB officials to de-seal the building and submit a compliance report at the next hearing scheduled for September 9.
The dispute centres on the legal status and ownership of the Karachi Cotton Exchange building, which was sealed in December during a joint raid by the ETPB and the Federal Investigation Agency (FIA). The authorities had claimed that the building constituted federal evacuee trust property.
The Karachi Cotton Association (KCA) and other petitioners subsequently approached the SHC, challenging the actions concerning the property and seeking enforcement of the court's directions.
In its earlier judgment issued on June 18, the SHC had referred the ownership dispute to the ETPB chairman for determination within 90 days after providing a fair opportunity of hearing to all concerned parties. At the same time, the court specifically allowed the Karachi Cotton Association to continue enjoying possession of the property until the legal status of the building was determined.
However, the ETPB later informed the court that its chairman had decided the ownership dispute on July 30 and declared the Karachi Cotton Exchange building to be federal evacuee trust property.
The development triggered further legal proceedings, with the petitioners accusing ETPB officials of failing to comply with the SHC's directions. They argued that important documents relating to the property were still inside the sealed building and that they had neither been given access to the premises nor restored possession despite the court's explicit order.
The petitioners also sought contempt proceedings against ETPB Chairman Qamar-uz-Zaman, ETPB Karachi Administrator/Zonal Head Asif Khan and Deputy Administrator Shahid Ali, alleging that the officials had wilfully disregarded the court's judgment.
During Wednesday's hearing, counsel for the ETPB officials argued that contempt proceedings were not maintainable because the ETPB chairman had already determined the ownership issue in accordance with the court's directions. The lawyer maintained that public notices had been published in newspapers and notices had also been issued to the concerned parties before the ownership proceedings.
The ETPB counsel further pointed out that the petitioners had obtained an interim restraining order from the SHC against the chairman's decision declaring the building evacuee trust property.
However, lawyers representing the applicants maintained that the ETPB's decision could not justify keeping the building sealed because the SHC had specifically permitted the petitioners to remain in possession pending determination of the property's status.
The constitutional bench observed that the respondents had passed an order declaring the property as evacuee trust property without complying with the court's earlier directions. The bench held that such conduct appeared to constitute clear defiance of the court's order and could amount to an offence under Article 204 of the Constitution of Pakistan relating to contempt of court.
The court rejected the ETPB's explanation and ordered the alleged contemnors to de-seal the Karachi Cotton Exchange building and submit a compliance report before the next hearing.
The case carries significant implications for the legal status, ownership and possession of the historic commercial property. While the ETPB maintains that the building is federal evacuee trust property, the ownership determination remains under judicial scrutiny following the SHC's interim proceedings.
The SHC has adjourned further proceedings until September 9, when the ETPB's compliance with the order to unseal the property is expected to be reviewed.

Karachi | ReNews Pakistan
Pakistan’s emerging Shariah-compliant real estate investment market has received a strong boost after the Naya Nazimabad Apartment REIT (NNAR) was oversubscribed eight times during its book-building process, attracting total bids worth approximately Rs4.5 billion ($16.2 million).
The offering, managed by Arif Habib Dolmen REIT Management Limited with Arif Habib Limited serving as lead manager, successfully raised Rs1 billion ($3.6 million) in equity after investors responded strongly to the issue.
The demand pushed the REIT’s price to the upper ceiling of Rs23 per unit, representing a 28% increase over the floor price. The strong response highlights growing investor interest in professionally managed real estate investment products that provide exposure to the property sector without requiring investors to purchase an apartment, plot or commercial building directly.
Following completion of the book-building phase, the general public subscription for NNAR is scheduled to take place on September 7 and 8, 2026. The public portion represents 25% of the total offering, while the remaining 75% has been allocated through the book-building process.
The Naya Nazimabad Apartment REIT is structured as a developmental real estate investment trust rather than a conventional rental-property fund. Its underlying projects involve the development of residential properties for sale, with proceeds and gains generated from those developments accruing to the REIT and its unitholders.
The structure allows investors to participate in large-scale residential developments through REIT units rather than having to commit the substantial capital normally required to purchase property outright. Because REIT units are listed on the stock market, investors can also potentially buy and sell their holdings more easily than they could sell a physical apartment or plot.
Shahid Ali Habib, CEO of Arif Habib Limited, said the overwhelming response to the Naya Nazimabad Apartments REIT reflected investor confidence in the offering. He said the eight-times oversubscription and demand at the upper price ceiling reinforced the potential of well-structured real estate investment products in Pakistan.
The REIT’s structure is designed to comply with Islamic financial principles, requiring its investments and financing arrangements to avoid interest and other activities prohibited under Shariah law. This provides an alternative investment avenue for investors seeking exposure to real estate through Shariah-compliant financial products.
The development comes as Pakistan seeks to expand its Islamic capital markets and increase the availability of Shariah-compliant investment instruments. According to official data cited in the report, Islamic banking assets reached Rs14.47 trillion ($51.9 billion) by the end of 2025, representing 22.9% of the country’s total banking assets.
The push toward Islamic finance has gained further importance because of Pakistan’s constitutional requirement to eliminate interest, or riba, from the economy by the end of 2027. The development of Shariah-compliant banking, investment and capital-market products is therefore becoming increasingly significant.
For Pakistan’s property market, the strong response to NNAR could also signal a broader shift in how real estate is accessed as an investment asset. Property has traditionally been a major destination for household savings, but direct ownership often requires substantial capital and can involve limited liquidity.
REITs can potentially address some of these barriers by allowing investors to obtain exposure to professionally managed property portfolios through smaller investments and listed units.
NNAR currently holds three real estate portfolios spread across Karachi and Lahore, with a combined assessed value of approximately Rs20.46 billion ($73.4 million) as of April 2026.
The successful book-building process is being viewed by the REIT manager as a significant development for Pakistan’s capital markets, as professionally structured REITs can broaden access to real estate investment while providing developers with an alternative mechanism for raising capital.
With public subscription set for September 7–8, the response from individual investors will provide another indication of the appetite for Shariah-compliant property investment products and the evolving role of REITs in Pakistan’s real estate sector.

Larkana | ReNews Pakistan
The rapidly shifting course of the Indus River near Larkana has raised serious concerns over the safety of residential areas, agricultural land, property investments and future housing developments, as a SUPARCO satellite analysis shows that the river’s active channel has shifted by approximately 4.5 kilometres over the past 35 years.
According to the SUPARCO satellite analysis, a significant change has been recorded in the flow of the Indus near the Moria Loop Bund, east of Larkana city. The changing river course has brought the active channel closer to a critical section of the flood protection bund, increasing the risk of breaches during severe flooding or exceptionally high river flows.
The situation also presents a major challenge for Pakistan’s property and urban planning sectors, particularly at a time when the country is facing a severe housing shortage. According to figures cited from the State Bank of Pakistan, the country faces a housing deficit of around 10 million units, with the shortfall increasing by approximately 350,000 units every year.
Experts warn that housing expansion without considering floodplains, river corridors and natural drainage routes could expose thousands of families, as well as billions of rupees invested in property and infrastructure, to significant future risks.
The devastating floods of 2010 provide a historical example of such vulnerabilities. Proceedings of the Flood Commission constituted by the Supreme Court of Pakistan highlighted how the expansion of settlements and construction along river corridors had significantly obstructed the natural flow of floodwaters, contributing to widespread destruction across several districts.
At the Tori Bund site, several new settlements and fish ponds had been established within the loop area. These developments were among the factors associated with the subsequent catastrophic breach of the bund. The resulting floods affected large parts of Sindh, forcing residents to evacuate and causing extensive damage to homes, agricultural land and livelihoods.
Water resources expert Zulfiqar Ali Halepoto has pointed to the continued expansion of development activities in riverine areas, saying that lessons learned from past floods have not been adequately incorporated into land-use policies and urban planning.
Recent satellite observations around the Moria and Aqeel Loop Bund areas indicate that approximately 2,000 hectares of land along the left bank of the Indus have been eroded and lost to the river. This erosion has reduced the area of agricultural and floodplain land while bringing the active river channel closer to the existing protective bund.
Meanwhile, sediment and sand deposition along the opposite bank has created approximately 1,600 hectares of new potentially cultivable land. However, experts caution that this newly formed land remains vulnerable and temporary in nature because the river could change course again in the future. It therefore cannot be considered safe for permanent agricultural use or property development without a proper risk assessment.
The threat is not limited to Larkana. A comparative review of 2025 satellite imagery from the Latifabad area of Hyderabad further indicates that urban expansion has encroached upon parts of the natural riverine protection belt.
Areas that once consisted of agricultural and open land, providing natural space for absorbing rainwater and allowing excess floodwater to spread, have increasingly been replaced by permanent residential structures, roads and other infrastructure.
Construction across natural floodplains can restrict the pathways available for excess water generated by intense monsoon rainfall or by increased flows resulting from snow and glacier melt in upstream areas. This can raise water levels and flow velocities while increasing pressure on protective bunds and nearby settlements.
A further comparison of satellite images of Larkana from 1990 and 2025 highlights the growing interaction between the changing course of the Indus and urban expansion. In 1990, the river’s main channel passed several kilometres away from the flood protection bund, following a broad curve. Over time, erosion and sediment deposition have caused the main channel to shift eastward.
The danger is no longer limited to floodwaters overtopping the bund. Continued erosion and the washing away of soil beneath the structure could also weaken its foundation. In the event of a sudden breach, floodwaters could rapidly enter nearby residential and agricultural areas, leaving limited time for evacuation and potentially causing severe damage to homes, land and critical infrastructure.
The situation underscores the need to make formal flood risk assessments a mandatory component of approvals for new housing schemes and urban expansion. Experts say that instead of approving housing projects solely on the basis of land availability and rising residential demand, urban planning must also incorporate the natural flow of rivers, floodplains, drainage systems and environmental risks.
A risk sensitive approach to land-use planning, experts stress, is essential to protect communities, agricultural assets and property investments from the growing threat posed by changing river courses and extreme flood events.