Egyptian real estate experts are calling for the government to regulate the country's real estate sector to ensure sustainable growth and protect the rights of clients and developers. The sector has seen significant expansion in recent years, but this growth has also brought challenges. Experts believe that government intervention is necessary to restore confidence in the sector and ensure that companies adhere to their contractual obligations.
According to Medhat Sayed Abdel Hafiz, a real estate expert and CEO of QORE, the government's efforts to regulate the sector are a positive step towards promoting confidence among stakeholders and ensuring that companies meet their contractual obligations. Abdel Hafiz noted that the Egyptian real estate market has witnessed significant growth in recent years, which requires more regulation and governance to ensure sustainable growth.
Abdel Hafiz also pointed out that regulating the market does not mean limiting the activity of real estate companies, but rather establishing a more disciplined framework that enables developers to implement projects according to their announced timelines. He emphasized the need for sales and financing plans to be aligned with the actual implementation capabilities of each project.
One of the major challenges facing the sector is the delay in delivering some projects on time. Abdel Hafiz stressed that addressing this issue requires practical solutions, starting from the pre-sales stage, through conducting feasibility studies and setting realistic timelines for implementation and delivery. He also emphasized the importance of balancing sales and implementation rates to ensure sector stability.
Real estate developers should link sales volumes to implementation rates to avoid over-expansion, Abdel Hafiz said. This approach will help prevent companies from over-selling projects they cannot deliver on time. Additionally, companies should adopt policies to hedge against fluctuations in construction material prices by planning ahead and securing essential materials in advance.
Ahmed Ahhab, a member of the Real Estate Development Chamber, echoed Abdel Hafiz's sentiments, stating that the Egyptian real estate market is at a critical juncture, requiring enhanced cooperation among stakeholders and a shift towards more organized and institutionalized work. Ahhab welcomed the establishment of the "Egyptian Real Estate Developers Association" as a supportive measure that complements government efforts to regulate the sector.
The growth of the sector may also lead to more partnerships and acquisitions between large and small companies, creating new opportunities for collaboration and integrating expertise and capabilities. Ahhab emphasized the importance of having clear registration and regulation frameworks to support this growth and ensure the availability of comprehensive and reliable data on the sector.
Key points
- Experts stress the need for government regulation to ensure sustainable growth in Egypt's real estate sector.
- Regulation aims to protect the rights of clients and developers and promote confidence in the sector.
- Establishing a more disciplined framework will enable developers to implement projects according to announced timelines.
