(MENAFN- Daily News Egypt) Participants in the Decision Makers conference put forward a set of recommendations aimed at shaping the proposed visions for advancing the Real estate industry through actionable steps. They agreed on the impossibility of a“real estate bubble” in the country. They emphasized the importance of supporting the role of real estate development companies by providing financing solutions that cater to various customer segments, with instalment plans extending up to five or ten years.
They also stressed the need to maintain stable interest rates to reduce the cost of real estate financing and offer competitive project prices, along with ensuring exchange rate stability.
Decision Makers conference concluded its fifth edition, on Wednesday, under the patronage of the Ministries of Housing and Utilities, and Investment and Foreign Trade, as well as the General Authority for Investment and Free Zones. The event featured participation from a distinguished group of investors, prominent figures, experts, and major real estate development companies in Egypt.
The conference participants highlighted the importance of partnership between the public and private sectors in enhancing service quality and managing utilities. They also noted the necessity of completing legislative environment preparations, which is crucial for supporting public-private partnerships, especially after many steps have been taken to resolve legislative issues related to dispute resolution. Additionally, they emphasized the need for suitable mechanisms to overcome obstacles related to tenant unions as a vital requirement for preserving the quality and maintenance of Egyptian real estate.
Regarding the required government policies, participants pointed out the need to continue providing financial and tax incentive packages to facilitate the work of real estate developers. They also advocated for easing construction requirements and addressing challenges related to the implementation of the national property number and property registration, by publicizing the contract at the relevant authority and allowing for the review of contractual terms within it to ensure compliance with issued ministerial decisions, which would help increase investment inflows.
On the topic of real estate export, participants noted that attracting foreign capital has become one of the most critical issues for enhancing the work of the Egyptian real estate sector, given the available capabilities and major projects in the country that encourage these objectives. They called for a specific strategy to attract foreign investments in the Egyptian real estate sector, aligning with all forms of investments, whether targeting unit purchases, external financing for existing projects, or direct investments for new projects. They emphasized the importance of having investment funds with dollar returns to support these initiatives.
Participants also proposed a set of suggestions aimed at improving the management of real estate assets to ensure increased returns from projects in the sector, alongside reviewing contractual terms to achieve fairness in the relationship between developers and clients. They highlighted the importance of the real estate tourism sector, which requires more efforts to improve its returns in conjunction with urban development efforts in Egypt. They called for the establishment of a federation for real estate developers to organize the field and support medical tourism efforts as part of initiatives to increase the number of hotel rooms nationwide.
They further stated that improving the management of real estate assets is a vital means to enhance returns from projects in the real estate sector, and emphasized the necessity of reviewing contract terms to ensure fairness in the relationship between developers and clients. The House of Representatives is actively working on establishing a new framework for relationships among all parties involved.
According to the developers,“Egypt's real estate sector faces challenges, which are less about the developers and more about the broader property industry. One of the most prominent issues is the need for a regulatory framework for real estate contracts, ensuring all companies adhere to standardized contracts under state supervision. This measure would help bolster foreign investor confidence in the sector.”
There is also an urgent need to activate mortgage financing. The concept of a“real estate bubble” is currently unlikely in Egypt, given the strong focus on real estate investment. The sector remains one of the most favourable investment avenues according to top global investors. While a potential slowdown is possible, real estate investment opportunities are still robust, especially in new projects, without any real threat of a property bubble forming.
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