Egypt's real estate sector is witnessing a push to establish a union for real estate developers, aiming to regulate the market and protect both buyers and developers. The proposed union is expected to set clear rules for operating in the sector, classify developers based on their financial and technical capabilities, and monitor their commitment to customers. This move is seen as a step towards enhancing transparency and trust in the market.
According to Mohamed Al-Bustani, head of the Egyptian Real Estate Developers Association, the union can play a crucial role in organizing the market and distinguishing between capable and struggling developers. The union would help filter out companies that are unable to continue operating or complete their projects, while providing a mechanism for dealing with customer complaints and stalled projects.
The proposed union's impact on sales and project implementation rates is not expected to be immediate. Instead, it will be gradual, as customer trust in companies and projects improves. Increased trust can lead to more sales and better collection rates, while higher implementation rates depend on factors such as financing, speedy procedures, and companies' ability to set realistic plans.
The Egyptian real estate market is considered strong and resilient despite recent economic challenges. The market's strength is attributed to the country's stability, with ongoing economic and real estate activities. The sector is expected to continue growing, driven by government support and decisions aimed at boosting the economy and real estate sector.
Sid Othman, a member of the Egyptian Real Estate Developers Association, emphasized that the union can positively impact the sector by helping to organize it and highlight developers capable of continuing to operate professionally. He noted that some companies face implementation and delivery challenges due to economic changes, but a genuine developer can prepare studies and plans according to a future vision.
Othman stressed that good governance is essential in regulating competition and protecting the market. He added that entering new competitors into the market is not a problem as long as there is a clear framework for governance and regulations that organize developers' work. The aim is to support the sector's sustainability and limit unstudied practices.
The success of the proposed union will depend on what it offers to the market. Its role is expected to go beyond registering companies or representing them, extending to setting clear activity rules, classifying developers, and improving mechanisms for dealing with complaints and stalled projects. The union's impact on sales and implementation rates will be tied to factors such as financing, planning capabilities, and adherence to implementation and delivery schedules.
Key points
- The proposed union aims to regulate Egypt's real estate market and protect buyers and developers.
- The union's success will depend on its ability to enhance transparency, trust, and governance in the sector.
- Egypt's real estate market is considered strong, with ongoing activities and government support.
