Calls For Urgent Regulatory Action In Egyptian Real Estate Market

(MENAFN- Daily News Egypt) Alaa Fikry, Chairperson of Beta Developments and First Vice President of the Real Estate Development Committee at the Egyptian Businessmen's Association, stated that the size of the real estate market and the number of companies operating within it have grown significantly in recent years.

This growth is due to the development and construction initiatives undertaken by the state, as well as the rising returns on real estate investments. This increase in companies requires swift action to regulate and organize the real estate market, Fekry said.

He pointed out that before 2014, the number of companies operating in the market was lower, and there wasn't the fierce competition of today.

He noted that regulation helps filter out non-serious companies from the sector while encouraging serious ones to expand.

He continued:“Regulation also helps protect customers' rights, boost real estate exports, and attract more investments to the Egyptian market.”

He explained that, on both local and international real estate exhibitions, there has been an increase in the number of exhibitions held throughout the year, which aligns with the new market dynamics and the rise in the number of companies operating in it.

Fikry disclosed that the Egyptian market is characterized by high returns on real estate investments. Real estate companies achieved unprecedented sales last year due to the depreciation of the Egyptian pound against the dollar, which led to changes in the real estate market and increased demand for property units.

Moreover, during the first half of 2024, companies recorded sales surpassing those of 2023, despite local and global economic challenges such as high inflation rates and currency devaluation. These factors have, in turn, driven up demand for real estate as an investment to preserve value and achieve returns, rather than for actual housing needs.

He pointed out that property prices in Egypt have not seen a decrease or a complete stagnation in sales, even during the toughest economic challenges, due to growing demand and increasing motivations to purchase for investment purposes.

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