Egypt’s Real Estate Assets Valued at USD200b; Eyeing Int’l Investors

Egypt’s Real Estate Assets Valued at USD200b; Eyeing Int’l Investors

– Egypt’s real estate assets, valued at $200 billion, are set for international export, including the Ras El-Hikma project, as part of a government initiative to boost the local market and foreign currency reserves.

– The government’s urban development strategy, aligned with President Abdel Fattah Al-Sisi’s directives, has led to the completion of over two million housing units in the last decade, strengthening the economic base of cities and transforming slums.

– Tarek Shoukry, Undersecretary of the Housing Committee, has proposed key measures for the future, including tax breaks for developers, fixed land price interest rates, and enhanced real estate financing methods to attract investment and stimulate the market.

Egypt’s real estate assets, encompassing both state and private sector projects, are valued at $200 billion and are poised for international export, including the ongoing Ras El-Hikma project, according to a senior official.

Since 2022, the Egyptian government has initiated a program to export real estate, aiming to invigorate the local market and bolster foreign currency reserves through property sales, Assistant Minister of Housing for Technical Affairs Abdelkhalek Ibrahim announced at a press conference.

He stated, “This initiative is a comprehensive strategy to improve the economic environment by attracting more investors. By directing investments into the real estate sector from international markets, we’re enhancing stock market performance and capitalizing on major projects like the Administrative Capital and other new cities.

“This approach is designed to boost demand in the Egyptian real estate market, promoting continuous growth and economic vitality.” Ibrahim also noted the increasing contribution of real estate activities to the national economy, accounting for about 20% of Egypt’s GDP in 2023.

Real estate in Egypt serves as a valuable asset for individuals and businesses, making sector stability a key objective for the nation’s economic equilibrium. In line with President Abdel Fattah Al-Sisi’s directives, the government has prioritized urban development, addressing critical issues and acting as a vital catalyst for economic expansion and investment, both locally and internationally.

Over the last decade, Egypt has completed over two million housing units, complementing private sector efforts. These units meet various needs, from social support to investment attraction, strengthening the economic base of cities, especially in new urban areas.

The creation of new cities has been instrumental in transforming slums and advancing social housing projects, earning praise from global entities. For instance, projects like New Alamein have paved the way for initiatives such as Ras El-Hikma, highlighting the importance of strategic urban planning and investment in Egypt’s growth path.

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, presented three key demands for the future.

These include advocating for tax breaks for real estate developers for a specific period.

Shoukry suggested a one-year trial of tax exemptions for real estate firms, expecting a favorable impact on their project execution.

He also emphasized the need for a definitive strategy regarding land price interest rates amid various factors. The chamber recommends a two-year extension with fixed land price interest rates at 10%, in line with existing practices.

Additionally, Shoukry highlighted the significance of the real estate financing sector in connecting sellers and buyers. He proposed a shift towards unified collateral in real estate financing and the introduction of initiatives with lower interest rates. He also called for a change in banks’ mortgage financing methods.

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