Real Estate Stakeholders Discuss Sector Challenges at the 2022 Egyptian Economic Conference
The Egyptian Economic Conference kicked off on Sunday to discuss the conditions and future of the Egyptian economy with wide participation from high-level economists, thinkers and specialist experts.
During the conference, a session was dedicated to real estate export to address the state’s efforts to maximize ways to leverage real estate wealth and establish an integrated roadmap to develop the efficiency of the real estate sector. and improve its competitiveness.
In addition, the session will discuss the export of real estate and encourage relevant parties in an integrated system to develop the export of Egyptian property, and achieve an integrated and specific roadmap to develop and improve efficiency. of this sector.
Abeer Essam, a member of the Real Estate Development Chamber of the Federation of Egyptian Industries, said the Chamber had presented several ideas to the Cabinet to help deal with economic challenges and overcome some current crises, in addition to expanding the mortgage financing for property clients and developers, and encourage the export of Egyptian property.
In addition, the Chamber argued a proposal to grant residency to foreign property buyers in Egypt to encourage them to buy and support the export of goods. The Chamber’s suggestions also included periods of time necessary for real estate developers to complete the development of their failing projects due to the COVID-19 crisis and the consequences of the Russian-Ukrainian war, high prices for construction materials, in addition to traders’ greed and its negative consequences. impact on real estate development, according to Essam.
She revealed that the Chamber will organize a real estate exhibition on the sidelines of the Egyptian Economic Conference on October 29, explaining that this exhibition serves as a message to the world that Egypt is stable and secure, calling on the world to invest in it, and the opportunities investment will be presented in this exhibition. In addition to inviting Egyptian and Arab investors and real estate investors to invest in African countries, as promising countries full of investment opportunities.
Daker Abdellah, a member of the Real Estate Investment Division of the Federation of Egyptian Chambers of Commerce and a member of the Construction Committee of the Egyptian Businessmen’s Association, said that Egypt pays great attention and great support for the real estate sector.
Abdellah stressed the need to focus on developing a vision on how to export Egyptian property through the expansion of real estate exposures in target markets in coordination between the private sector and the government. In addition, define a unified contract for the sale of real estate units to foreigners and establish a platform gathering all real estate projects in Egypt, their specifications, prices and payment methods. This electronic platform is under the aegis of the Ministry of Housing, Public Services and Urban Communities, and it is marketed separately externally.
He suggested the need to expand mortgage financing initiatives by increasing the credit limit to EGP 5 million to extend the benefits of these initiatives, especially among middle income people, to create greater popularity in the sale of real estate.
Abdellah stressed the importance of establishing a real estate market regulatory body so that the general policies and frameworks of the real estate market are set, provided that it follows the Prime Minister.
Likewise, Mahmoud El-Adl, President of MBG Developments, stressed the need to establish an international system for the export of Egyptian real estate, in which the State participates with the private sector and is represented by the Ministries of Housing, Trade and Industry, Migration and Tourism, in order to have a strong and effective role.
El-Adl added that the private sector is not the only one to manage this system and that the government must play an effective role in the export of real estate, because it will be the only mechanism capable of attracting important Foreign investments.
He explained that the export of real estate is one of the most important global exchanges and that the volume of real estate exceeds 2 billion dollars per year, while the percentage of Egypt in this trade does not exceed 2.5%, added that Egypt has a variety of real estate products between administrative, commercial, medical, residential and serviced apartments, which meet the needs of Arab and foreign citizens and investors.
He noted that the real estate market is constantly growing and there is an increasing demand for real estate due to population growth rates that reach 2.5% per year, in addition to almost one million marriages each year. . New administrative capital projects are considered the best-selling in the real estate sector. There is a demand and a desire to buy and obtain housing, and it is expected that these desires will continue to grow, especially with the government moving to the New Capital in 2022.
In early October, Prime Minister Mostafa Madbouly met with property developers to discuss ways to advance and develop the property sector, during which developers stressed the importance of working to change the philosophy of mortgage financing for Egyptians, and to provide more facilities for obtaining housing through mortgage financing. They demanded that unity be a guarantor, and they offered a number of ideas in this regard and mechanisms for their implementation.
They further offered a number of ideas and visions regarding mortgage financing and mechanisms to activate it, so as to help provide and make as many housing units available for sale as possible. They also presented a number of ideas that would help revitalize and increase the sale of housing to expatriate or foreign Egyptians, demanding that a body affiliated with the cabinet be tasked with dealing with property export and means of market it. They also demanded that real estate developers be allowed to sell to foreigners in US dollars.