Senator Hazem El Guindi submitted a proposal addressed to Prime Minister Mostafa Madbouly and Minister of Housing, Public Works and New Urban Communities Asem El Ghazal. The proposal aims to promote hard currency exports of Egyptian real estate, attract investment and increase foreign exchange reserves.
In his proposal, El Guindi highlights the significant development boom in Egypt's real estate market over the past few years. The state has actively supported urban development by launching various projects in different provinces and expanding the construction of smart cities.
He added that the role of the real estate market as an economic driver cannot be overstated. Real estate exports depend on attracting foreign capital through diversified real estate investments, which in turn brings foreign exchange into the country.
El Guindi emphasized that real estate exports include encouraging foreign investors to invest in real estate assets in Egypt and trading in foreign currencies. In return, investors can enjoy certain privileges, such as the right of residence and the possibility to acquire citizenship based on conditions that vary from country to country. Exporting real estate therefore represents an attractive investment avenue for both foreigners residing in Egypt and expatriates living abroad.
The global real estate export market is over $300 billion. Fitch expects investment in Egypt's real estate sector to continue, driven by strong commercial real estate conditions. The state's continued efforts to establish new cities make real estate investment even more attractive.
The new city offers great opportunities for potential domestic and international investors. As of 2023, the total value of Egypt's real estate market will reach EGP 3.5 trillion, and is expected to rise to EGP 5.2 trillion by 2028. Residential real estate accounts for the largest share, with a value of 2.5 trillion Egyptian pounds, followed by commercial real estate with a value of 1 trillion Egyptian pounds. Senator.
Internationally, several models have been successful in promoting real estate exports. Prominent examples include the United Arab Emirates, Spain, Portugal, Colombia, and Malta. The Egyptian government has launched an important program entitled “Exporting Real Estate in Dollars'' aimed specifically at foreign investors and Egyptian expatriates. This initiative offers a non-traditional route to purchasing housing units. The state actively promotes real estate transactions for foreigners, including streamlined procedures and incentives such as residency and citizenship.
Despite its potential, Egypt faces local challenges in expanding real estate exports. These challenges include administrative complexity, unclear regulations, poor promotional campaigns, high inflation, weak real estate financing, limited property registrations, bureaucratic hurdles, etc. Additionally, a lack of comprehensive data on Egypt's real estate market and a cumbersome registration process are hindering progress. Marketing and promotion of Egyptian real estate abroad is non-existent or weak, reducing the possibility of attracting foreign investors.
To overcome these obstacles, El Guindy calls for urgent action. Egypt needs to stimulate real estate exports to both foreign investors and Egyptians abroad and conduct transactions in hard foreign currency. Removing obstacles is essential to successful expansion. To do so, it is necessary to prepare a good promotional plan for selling Egyptian real estate products, create new demand through international real estate platforms, and launch promotional campaigns for Egyptian real estate.
The main recommendations are:
Global strategic marketing and promotion of Egyptian real estate
Mr. El Guindi appealed for the need to pay attention to the marketing and promotion of Egyptian real estate in different countries of the world and to develop an integrated strategy for marketing Egyptian real estate abroad.
Promoting real estate registration mechanisms
He also called for the facilitation and simplification of real estate registration mechanisms with incentives so that these properties are included in Egypt's real estate assets and can be used as collateral for transactions and credit facilities.
Development of mortgage financing and establishment of real estate exchange
He further discussed the introduction of legal reforms backed by administrative procedures for developing mortgage financing and the need for real estate developers to establish a real estate exchange in Egypt and trade real estate-based securities through it. asked them to consider the proposal. This will help streamline the pricing of real estate units, support the entry and exit of foreign investors through indirect real estate investment, and make many lands and properties in different regions across the Republic available for investment in hard currency. To do.
Establishing an organization specializing in the marketing of Egyptian real estate
Mr. El Guindi called for the creation of an authority and company specialized in selling Egyptian real estate abroad and providing facilities to foreign investors.
Issue new legislation providing guarantees, tax exemptions and residency options for foreign investors
The senator will regulate the export of real estate with the aim of providing guarantees to foreign investors, expediting the process of purchasing real estate, and providing incentives to foreign investors, such as tax exemptions and the provision of residency rights. supported the enactment of a new law.
Hold real estate exhibitions abroad to attract foreign investment
Furthermore, Mr. El Guindi will expand the establishment of real estate exhibitions outside Egypt at the international level in order to attract more foreigners to invest in Egypt, as well as expand the establishment of real estate exhibitions by developers to meet the demands of foreign markets. He suggested raising standards.
Promote cooperation between governments and real estate developers
He emphasized the need to enable a national ID system for all real estate, strengthen cooperation between the government and Egyptian real estate developers to make real estate exports successful, and provide necessary information about the Egyptian real estate market. emphasized. An online real estate platform or website that showcases real estate in Egypt.
In conclusion, El Guindy urges swift action to maximize economic benefits. This proposal should be promptly referred to a special cabinet committee for thorough discussion in the presence of relevant government officials.
He said: “We therefore propose to realize the idea of exporting Egyptian real estate in dollars by selling real estate to foreigners or Egyptians living abroad.Therefore, from all aspects of real estate. “We need to take swift and prudent steps.” Export to maximize economic benefits. Furthermore, we urge that this proposal be promptly referred to a special committee of the Cabinet for discussion in the presence of relevant government officials. ”
