The Egyptian real estate sector is calling for the establishment of a union to regulate the market and ensure sustainable development. According to Khaled Seddik, head of the Urban Development Fund, four years have passed since the government issued a decree to establish a union for real estate developers, but the vision for its implementation is still unclear. The sector contributes 20% to the country's GDP, highlighting the need for a well-regulated industry.
Seddik emphasized that the union's primary role would be to organize the relationship between the government, developers, and consumers. It would also protect the market from practices that could harm the sector's reputation and ensure that developers adhere to certain standards. The union would need to be comprehensive, taking into account the market's size and recent developments. Seddik noted that while a chamber previously performed some of these functions, the current stage requires a more comprehensive union.
The classification of developers is a crucial aspect of the union's role. Seddik stressed that this classification should be based on clear and fair criteria, including project size, capabilities, and experience. This would enable the differentiation of companies based on their actual capabilities and experience. He also emphasized the importance of diverse financing mechanisms and the need to discuss these with the Central Bank to support developers and ensure project completion.
Seddik highlighted the need for a continuous relationship between developers and clients even after unit handover and occupation. This includes attention to project management during the post-operation phase to ensure project quality and long-term sustainability. He also proposed launching an initiative for real estate financing with an interest rate of 10-12% to support market movement and citizens' ability to purchase units.
The union's establishment would require a law that outlines its main features, while the executive regulations would provide more details for its implementation. Seddik noted that the union might undergo some changes and developments during the implementation stages based on practical experience. His statements were made during a roundtable discussion organized by Invest-Gate on September 23, 2026.
The discussion, titled "Towards the Establishment of the Egyptian Union of Real Estate Developers," examined the proposed framework for the union's establishment and its role in regulating the market and representing developers. Seddik's participation in the discussion highlighted the importance of collaboration between the government and the private sector in shaping the future of the real estate industry.
The proposed union aims to bring stability and sustainability to Egypt's real estate market. Its establishment would mark a significant step towards organizing the sector and ensuring its continued growth and contribution to the country's economy. The union's success would depend on its ability to balance the interests of developers, consumers, and the government.
Key points
- The Egyptian real estate sector contributes 20% to the country's GDP.
- A proposed initiative for real estate financing with an interest rate of 10-12% aims to support market movement.
- The union's establishment would require a law outlining its main features and executive regulations providing more details.
