'Wait and Watch' is the buzzword for real estate these days.

Byline: Ahsan Nisar

Recent anti-encroachment drive aims to crush institutional corruption and building of cartels

Profit margins have shrunk due to increase in cost of input and taxes

Interview with Muhammad Ejaz Taj - CEO, T. I. Marketing, T. I. Properties and 9T9 Advertising (T. I. Group of Companies)

PAGE: What are your views on the housing finance sector?

Ejaz Taj: The housing finance market is among the most important in the economy. It accounts for a sizeable portion of the production activity of a country, through its backward linkages to land markets, building materials, tools, durable goods and labor markets. During the last few years, favorable developments in the economy have facilitated the offering of housing finance by financial institutions. The increasing scope of finance for housing in Pakistan has led many local and foreign banks to be engaged in house financing activities.

PAGE: Your views on the real estate market in Pakistan:

Ejaz Taj: Real estate market is crucial for promoting commerce and industry, growth and employment, and poverty reduction. The liberalization of the Pakistani economy has increased business opportunities and migration of the labor force to urban localities has led to an increase in the demand for both commercial and housing space. However, the role of formal real estate investment markets in the process of economic development remains poorly understood. The lack of understanding is, in part, a direct result of the absence of reliable information on real estate values, yields and total returns.

The real estate market is the market that encompasses all transactions which involve dealings in rights or access to land and buildings. It forms the backbone of the urban economy being a fixed factor market; hence an efficient real estate market is most important for a well-functioning urban environment. An efficient real estate market is one that encourages quick development and transaction of land, provides reasonable access to all income groups, environmentally sound and the system governing the land markets should be integrated with other laws and regulations governing land, such as planning, taxation and provision of public infrastructure and services.

PAGE: How would you comment on the affordability level of the masses in Pakistan?

Ejaz Taj: One of the main bottlenecks is the underdeveloped mortgage sector - just...