Egypt's real estate sector is thriving with assets valued at $200 billion. This includes both public and private sector projects. Notably, the Ras El-Hikma project is part of this vast portfolio.
GOVERNMENT INITIATIVES FOR EGYPTIAN REAL ESTATE EXPORTS
Since 2022, the Egyptian government has launched an initiative to export real estate. This aims to boost the local market and increase foreign exchange reserves. Deputy Minister of Housing and Technical Affairs Abdelkhalek Ibrahim shared these details at a recent press conference.
Ibrahim highlighted how this initiative is a strategy to improve Egypt's economic environment. This, he illustrated, will focus on attracting more investors. By doing so the aim is to improve the Egyptian stock market. But it will also capitalise on major projects like the New Administrative Capital and new cities.
REAL ESTATE'S SIGNIFICANT CONTRIBUTION TO EGYPT'S GDP
Real estate activities now contribute around 20% to Egypt’s GDP. This makes the sector crucial for the country's economic growth. The stability of Egypt's real estate is a key goal for individuals and businesses alike.
URBAN DEVELOPMENT AS A PRIORITY IN EGYPT
President Abdel Fattah Al-Sisi has prioritised urban development. This initiative addresses critical issues and catalyses economic expansion. Over the past decade, Egypt has completed more than two million housing units. These units cater to social support and investment. In doing so, they strengthen the economic base of cities, especially in new urban areas.
TRANSFORMING SLUMS AND PROMOTING SOCIAL HOUSING
The creation of new cities has helped transform slums and promote social housing projects. Global entities have praised these efforts. Projects like New Alamein have paved the way for initiatives such as Ras El-Hikma. These highlight the importance of strategic urban planning and investments in Egypt’s growth.
KEY DEMANDS FOR THE FUTURE OF EGYPTIAN REAL ESTATE
Tarek Shoukry, Undersecretary of the Housing Committee and Chairman of the Real Estate Development Chamber presented three key demands for the future.
Tax breaks for property developers for a specific period:
Shoukry suggested a one-year trial of tax exemptions for real estate companies. He believes this will positively impact project execution.
A definitive strategy for land price interest rates:
He also stressed the need for a definitive strategy for land price interest rates. The chamber recommends a two-year extension with fixed interest rates on land prices at 10%.
The importance of the real estate financing industry:
Shoukry also highlighted the importance of the real estate financing industry. This industry connects sellers and buyers. He proposed transitioning to unified guarantees in real estate financing and introducing initiatives with lower interest rates. He also called for changes in banks’ mortgage financing methods.
THE IMPACT OF THE RAS EL-HIKMA DEAL
Abdul Rahman Agamy, CEO of Diamond Group and Sky AD Developments, discussed the Ras El-Hikma deal. He highlighted its positive impact on the Egyptian economy and real estate sector. Agamy stressed its role in attracting foreign investment to Egyptian real estate. He pointed out the private sector's responsibility to showcase the market's potential to international investors. He also mentioned state support for the sector. This support gained global recognition after the Ras El-Hikma deal.
EGYPT'S VISION FOR SMART AND SUSTAINABLE CITIES
The Ras El-Hikma project shows the state’s vision to create smart and sustainable cities. An international developer is partnering on this project, aiming to introduce new ideas to Egypt. The project expects to boost tourism to over 8 million visitors, and also attract foreign businesses to Egypt. This will help the country’s economic recovery.
ACCELERATING DEVELOPMENT
Agamy highlighted that the Ras El-Hikma project will speed up the development of the northwest coast. This includes the city of New Alamein. The project is a major step in Egypt's growth and development plans.
PROMISING OPPORTUNITIES FOR GLOBAL INVESTMENT IN EGYPT
Egypt's real estate market, valued at $200 billion, is ready for international investment. The government assists with its real estate export initiative and strategic planning. In doing so, the efforts will boost economic growth in Egypt. This is due to how the real estate sector is a strong contributor to GDP and focuses on sustainable development. So, the Egyptian real estate market offers promising opportunities for global investors.
