(MENAFN- Daily News Egypt)
Hazem El-Gindy, a member of the Senate, has submitted a proposal addressed to Prime Minister Mostafa Madbouly and Minister of Housing, Utilities, and New Urban Communities Assem El-Gazzar. The proposal aims to promote the export of Egypt's real estate in hard currency, attracting investments and bolstering foreign exchange reserves.
In his proposal, El-Gindy highlights the significant development boom in Egypt's real estate market over the past years. The state has actively supported urban development by initiating various projects across different governorates and expanding the establishment of smart cities.
He added that the role of the real estate market as an economic driver cannot be overstated. Property exports rely on attracting foreign capital through diverse real estate investments, thereby channelling foreign currencies into the country.
El-Gindy emphasizes that real estate export involves enticing foreign investors to invest in real estate assets within Egypt, transacting in foreign currency. In return, investors may enjoy certain privileges, including residency rights or even the possibility of obtaining citizenship based on varying conditions between countries. Thus, exporting real estate becomes an attractive investment avenue for both foreigners residing in Egypt and those abroad.
Globally, the real estate export market exceeds $300bn. Fitch predicts continued investments in the Egyptian real estate sector, driven by the robust commercial real estate landscape. The state's ongoing efforts to establish new cities further enhance the attractiveness of real estate investment.
New cities offer substantial opportunities for potential investors, both local and foreign. As of 2023, the Egyptian real estate market's total value reached EGP 3.5trn, projected to rise to EGP 5.2trn by 2028. Residential properties constitute the largest share, valued at EGP 2.5trn, followed by commercial real estate at EGP 1trn, according to the Senate member.
Internationally, several models have successfully promoted real estate exports. Notable examples include the United Arab Emirates, Spain, Portugal, Colombia, and Malta. Egypt's government has initiated a crucial program titled“Exporting Real Estate in Dollars,” specifically targeting foreign investors and Egyptian expatriates. This initiative provides unconventional pathways for purchasing residential units. The state actively facilitates real estate transactions for foreigners, including streamlined procedures and incentives like residency and citizenship.
Despite its potential, Egypt faces local challenges in expanding real estate exports. These challenges include administrative complexities, unclear regulations, insufficient promotional campaigns, high inflation, weak real estate financing, limited registered properties, and bureaucratic hurdles. Additionally, the lack of comprehensive data on the Egyptian real estate market and cumbersome registration processes hinder progress. The absence or weakness of marketing and promotion of Egyptian real estate abroad reduces the chances of attracting foreign investors,
To overcome these obstacles, El-Gindy calls for urgent action. Egypt must activate real estate exports to both foreign investors and Egyptians abroad, conducting transactions in hard foreign currency. The removal of impediments is essential for successful expansion. This requires preparing a good promotional plan to market Egyptian real estate products, creating new demand through international real estate platforms, and launching promotional campaigns for Egyptian real estate.
Key recommendations include:
Strategic Marketing and Promotion of Egyptian real estate globally
El-Gindy called for paying attention to marketing and promoting Egyptian real estate in various countries of the world, and the necessity of developing an integrated strategy for marketing Egyptian real estate abroad.
Facilitate real estate registration mechanisms
He also urged the facilitation and simplification of real estate registration mechanisms using incentives, so that these properties are included within the Egyptian real estate wealth, which qualifies them for trading and use as collateral for credit facilities.
Develop mortgage financing and establish real estate exchange
He further called for the introduction of legislative amendments supported by executive procedures to develop mortgage financing and to study the proposals of real estate developers regarding the necessity of establishing a real estate exchange in Egypt and trading securities based on real estate through that exchange. This helps in the efficiency of pricing of real estate units, and helps in the entry and exit of foreign investors through Indirect real estate investments, providing many lands and properties in various regions across the Republic for investment in hard currency.
Create an entity dedicated to marketing Egyptian real estate
El-Gindy called for establishing an authority or company specialized in marketing Egyptian real estate abroad and providing facilities to foreign investors.
Issue new law to provide guarantees, tax exemptions, and residency options for foreign investors
The Senator rooted for issuing a new law to regulate the export of real estate, which aims to provide guarantees to foreign investors, facilitate the process of purchasing real estate, and provide incentives to foreign investors such as tax exemption, providing residency.
Host real estate exhibitions abroad to attract foreign investment
Moreover, El-Gindy proposed expanding the establishment of real estate exhibitions outside Egypt at the international level
to attract many foreigners to invest in Egypt, as well as raise real estate development standards by developers to meet the requirements of foreign markets.
Foster collaboration between the government and real estate developers
He highlighted the necessity of activating the national ID system for all real estate, enhancing cooperation between the government and Egyptian real estate development companies to make the real estate export experience a success, and then providing the necessary information about the Egyptian real estate market by creating an online real estate platform or website to show Egypt's property.
In conclusion, El-Gindy urges swift action to maximize economic benefits. The proposal should be promptly referred to the cabinet's specific committee for thorough discussion in the presence of relevant government officials.
He said:“Hence, we propose to implement the idea of exporting Egyptian real estate in dollars, by selling real estate to foreigners or Egyptians residing abroad, and therefore it is necessary to move with quick and deliberate steps from all aspects in the real estate export to maximize economic benefits. Moreover, we urge fast referral of the proposal to the cabinet's specific committee for discussion in the presence of relevant government officials.”
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