Muhammad Ejaz

Early life and background

Ejaz says he is from Islamabad. He describes his background as being in financial markets, and says the team works from data. [1]

Education

Ejaz says he completed his graduation. He says he earned an MBA from IBA through its banking programme. [1]

Career

Ejaz says he was completing his graduation at the time of the 1992 reforms. He says he joined the banking sector and spent some time at Engro Chemical. He says he worked in capital markets. He says that after capital markets, real estate was the obvious next sector to open up and reform. [1]

Arif Habib Group and the Dolmen REITs

Ejaz says corporate houses entered real estate over the past 15 to 20 years, including the Arif Habib Group. He says that when the Dolmen REIT launched, its first-year rental yield was 10%. He says that in 2022 he felt the firm had reached a level where activities boomed, and that the firm has acquired a leading position in the sector. [1]

He says the firm has created about 18 REIT funds. Two of those funds are rental REITs: Dolmen City Karachi and Dolmen Mall Lahore. He says that as a REIT management company, the firm also rents out Dolmen. [1]

Development REITs and products

Ejaz says a developmental REIT runs a project for a set period. He says a development in Karachi covers 1,400 acres, of which 700 acres have been developed so far, and that about 80% of the construction work on those 700 acres is still to be done. He says the firm created a REIT for a riverfront development in Lahore and is building a REIT in Lahore's CBD. He says one of the firm's REITs recognises income on a percentage-of-completion basis. [1]

Ejaz says a harbour front and mall property was valued and issued as units of Rs 10 each, and that the units were listed on the stock exchange. He says turnover of REIT units is low, one reason being that holders are not selling. He describes tokenisation as the idea that someone who could not buy ten tola of gold can buy one gram. He says the Property Share product lets a buyer purchase just 100 square feet rather than a whole apartment. [1]

Views on rental yields and REITs

Ejaz says a rule of thumb in Karachi puts an office building's rental yield near 6% a year. He says good Pakistani assets appreciate 15 to 20% a year. He says the rental yield on face value is now close to 30%. He says build-to-rent is the most robust real estate model. He says Pakistan's rental market has not grown partly because individuals are involved. [1]

Ejaz says a REIT must distribute 90% of its profit. He says the informal sector has dominated real estate, partly because formal finance never arrived. He says Pakistanis have historically favoured property because its risk is lower, but that property has a liquidity problem. He says buyers have started to get better products and better risk management. [1]

Views on tax and transparency

Ejaz says trust cannot form if documents say one thing and people say another. He says growth requires openness, and hiding information cannot scale. He says documentation and transparency have played an important role in growth worldwide. He says people see the tax system as the biggest obstacle to opening up. In his view the answer to high tax is to debate and fight it, while still complying. [1]

Ejaz says regulated sectors in Pakistan usually take the hardest hits and face higher taxes. He says Pakistan's tax system is hostile to business, and that people treat paying full tax as foolish. He says that for every Rs 100 of cement sold, Rs 55 is tax. He says section 99A was inserted into the Income Tax Ordinance so that property transferred to a REIT would not attract capital gains tax, and that a property transfer would cost 24 billion because section 99A is not being renewed. [1]

Views on investing and housing

Ejaz says he has long opposed pump-and-dump property files. He says he has long supported the stock market as a long-term investment. He says he has long been a proponent of property where construction is taking place. He says he believes in building long-term systems. [1]

Ejaz says Pakistan adds the population of one Australia every five years and has an acute shortage of civil infrastructure. He cites a World Bank figure of a 12 million home shortage and says Pakistan apparently requires 5 million housing units. He says Pakistan has high demand for commercial property. He says about 70% of basic construction items are domestic. [1]

Ejaz says Pakistan needs systems and structure, and that promoting a good practice makes society converge towards it. He says 40% of the population is below the poverty line. He says 90% of financial assets are with the banks and more than 60% of that has been lent to the government. He says the number of stock market investors reached 600,000 for the first time, with 25,000 added in July alone, and that people need education on how to invest. [1]

Timeline

1992

Completing his graduation at the time of the 1992 reforms, by his account[1]

Appearances

Frequently asked questions

References

1. The rupee is being held. REITs are the exit. . Thought Behind Things , 2026-08-19.