Egypt’s real estate portfolio, which includes both public and private sector projects, amounts to $200 billion and is ready for international export, explained Abdelkhalek Ibrahim, assistant minister of housing for technical affairs. Egypt’s portfolio also includes the $35 billion ongoing Ras El-Hekma project.
In 2022, Egypt launched an initiative to export real estate with an aim to bolster the local property market and increase foreign currency reserves through property sales, Ibrahim explained. Notably, the real estate sector contributed close to 20 percent of Egypt’s gross domestic product (GDP) in 2023. Therefore, the sector’s stability is crucial for Egypt’s long-term economic growth and stability.
Urban development a priority
In line with President Abdel Fattah Al-Sisi’s directives, Egypt’s government has increasingly focused on urban development. Hence, it tackles issues facing Egypt and is a critical factor in supporting the country’s economic expansion and investment growth. In the last 10 years, Egypt has developed over 2 million housing units to provide social support and attract investments in the real estate sector.
Thus, developing the country’s urban landscape with new cities has significantly supported Egypt’s transformation. Projects like New Alamein have opened the door for mega investments in developments like the Ras El-Hekma project.
Read: Dubai Land Department launches REES initiative to redefine urban landscape
Taxes and interest rates
During the conference, Tarek Shoukry, undersecretary of the housing committee at the House of Representatives and chairperson of the real estate development chamber at the Federation of Egyptian Industries, highlighted three demands to support Egypt’s real estate sector growth.
First, Shoukry advocated for one-year tax exemptions for real estate firms, which will boost project execution. Moreover, he emphasized the need for a strategy regarding land price interest rates. Therefore, the chamber recommends a two-year extension of fixed interest rates at 10 percent for land prices. Furthermore, Shoukry highlighted the importance of the real estate financing sector in connecting sellers and buyers. Therefore, he suggested that Egypt shift to unified collateral in real estate financing and introduce lower interest rate initiatives. Finally, he called for a shift in mortgage financing methods by banks.
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