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New Policies and Technologies Will Drive Growth in Egyptian Real Estate

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Dr. Ehsan Bayat
Dr. Ehsan Bayat

Egypt’s real estate market recorded impressive growth in 2021 and will likely expand even more in 2022 due to new initiatives.

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New Policies and Technologies Will Drive Growth in Egyptian Real Estate
New Policies and Technologies Will Drive Growth in Egyptian Real Estate Importantly, the Egyptian government continues to make moves to encourage the growth of the market, especially moving into 2022. Therefore, it would not be surprising to see the market grow even more than it did in 2021.
New Policies and Technologies Will Drive Growth in Egyptian Real Estate • Importantly, the Egyptian government continues to make moves to encourage the growth of the market, especially moving into 2022. Therefore, it would not be surprising to see the market grow even more than it did in 2021.
Restrictions on the Sale of Real Estate Projects One of the most significant announcements moving into 2022 came from President Abdel Fattah Al-Sisi, who said that no real estate projects would be marketed until they reached 30 percent completion. This serves as a guarantee for the developer’s commitment and reduces the chances of investing in a project that never comes to fruition. Historically, developers have sold units on developments even before construction commences. The newer policy creates a safer investment climate that helps preserve and protect the rights of citizens. The Administrative Capital for Urban Development, which oversees the development of the New Administrative Capital project, passed along this obligation to all developers, which are now banned from offering units on any project that has not achieved 30 percent completion.
Restrictions on the Sale of Real Estate Projects The new announcement applies to both existing and new projects. Accordingly, potential real estate purchasers and investors are encouraged to do their research on projects before signing a contract. Customers should confirm that the project has ministerial approval and necessary licenses, and check in on the development process and schedule compliance. Doing this puts pressure on developers to be more transparent with the development process or risk losing out on contracts. Real estate companies in the North Coast and New Alamein have adopted similar restrictions for their projects to encourage completion.
New Changes from the Central Bank of Egypt Another major initiative comes from the Central Bank of Egypt, which aims to make housing more affordable to people of all income levels. The bank has offered mortgages with interest rates of 3 percent for up to 30 years. Currently, this initiative is backed by 100 billion Egyptian pounds, with the chance to increase financing if there is a major turnout from Egyptian citizens. The president implemented this policy as a means of helping low- and middle-income families attain suitable housing. Furthermore, the bank changed some of its other mortgage programs to facilitate longer repayment periods and raise the maximum unit price that would qualify.
New Changes from the Central Bank of Egypt The Central Bank of Egypt additionally amended the rules for granting funds to real estate developers. For the first time, banks can provide financing for land installments owed by clients to real estate development companies. The new rules also allow for financing partnership projects between government agencies and real estate developers. In these partnerships, the company must submit a detailed timetable of construction phases that undergo periodic review. These changes will help real estate developers amass more financing for accelerating construction plans on existing projects without sacrificing income from them.
Better Marketing through Real Estate Tech While initiatives from Egypt’s president and national bank will accomplish a lot in terms of increasing growth in the real estate market through 2022, it is also important to recognize the role that tech will play in achieving this goal. The real estate search engine Aqarmap recently launched the Aqarmap Matcher service, which helps facilitate faster connections between buyers and sellers in Egypt. Within a market that has high supply and high demand, marketing opportunities can be lost. Aqarmap addresses this issue by making it easier to search for nearby offerings and make sure that nothing is overlooked. Improving the connection between buyer and seller will ultimately help drive transaction volume. This system will be supported by a new policy that requires the registration of each piece of real estate, which results in a unique identification number for that property.
Better Marketing through Real Estate Tech American company Platform Leaders is set to launch a new piece of tech aimed at real estate investors. The platform provides accurate and documented information on various pieces of real estate and offers specialized analyses by a professional research team. This information is meant to facilitate better investment decisions so that stakeholders can invest with more confidence. Another startup, Lizas, recently launched a platform that identifies real estate investment opportunities and helps people find the ideal properties for their particular needs. The platform, Liza, links buyers and sellers through a chat system to facilitate information exchange.

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New Policies and Technologies Will Drive Growth in Egyptian Real Estate

  • 1. New Policies and Technologies Will Drive Growth in Egyptian Real Estate
  • 2. New Policies and Technologies Will Drive Growth in Egyptian Real Estate Importantly, the Egyptian government continues to make moves to encourage the growth of the market, especially moving into 2022. Therefore, it would not be surprising to see the market grow even more than it did in 2021.
  • 3. New Policies and Technologies Will Drive Growth in Egyptian Real Estate • Importantly, the Egyptian government continues to make moves to encourage the growth of the market, especially moving into 2022. Therefore, it would not be surprising to see the market grow even more than it did in 2021.
  • 4. Restrictions on the Sale of Real Estate Projects One of the most significant announcements moving into 2022 came from President Abdel Fattah Al-Sisi, who said that no real estate projects would be marketed until they reached 30 percent completion. This serves as a guarantee for the developer’s commitment and reduces the chances of investing in a project that never comes to fruition. Historically, developers have sold units on developments even before construction commences. The newer policy creates a safer investment climate that helps preserve and protect the rights of citizens. The Administrative Capital for Urban Development, which oversees the development of the New Administrative Capital project, passed along this obligation to all developers, which are now banned from offering units on any project that has not achieved 30 percent completion.
  • 5. Restrictions on the Sale of Real Estate Projects The new announcement applies to both existing and new projects. Accordingly, potential real estate purchasers and investors are encouraged to do their research on projects before signing a contract. Customers should confirm that the project has ministerial approval and necessary licenses, and check in on the development process and schedule compliance. Doing this puts pressure on developers to be more transparent with the development process or risk losing out on contracts. Real estate companies in the North Coast and New Alamein have adopted similar restrictions for their projects to encourage completion.
  • 6. New Changes from the Central Bank of Egypt Another major initiative comes from the Central Bank of Egypt, which aims to make housing more affordable to people of all income levels. The bank has offered mortgages with interest rates of 3 percent for up to 30 years. Currently, this initiative is backed by 100 billion Egyptian pounds, with the chance to increase financing if there is a major turnout from Egyptian citizens. The president implemented this policy as a means of helping low- and middle-income families attain suitable housing. Furthermore, the bank changed some of its other mortgage programs to facilitate longer repayment periods and raise the maximum unit price that would qualify.
  • 7. New Changes from the Central Bank of Egypt The Central Bank of Egypt additionally amended the rules for granting funds to real estate developers. For the first time, banks can provide financing for land installments owed by clients to real estate development companies. The new rules also allow for financing partnership projects between government agencies and real estate developers. In these partnerships, the company must submit a detailed timetable of construction phases that undergo periodic review. These changes will help real estate developers amass more financing for accelerating construction plans on existing projects without sacrificing income from them.
  • 8. Better Marketing through Real Estate Tech While initiatives from Egypt’s president and national bank will accomplish a lot in terms of increasing growth in the real estate market through 2022, it is also important to recognize the role that tech will play in achieving this goal. The real estate search engine Aqarmap recently launched the Aqarmap Matcher service, which helps facilitate faster connections between buyers and sellers in Egypt. Within a market that has high supply and high demand, marketing opportunities can be lost. Aqarmap addresses this issue by making it easier to search for nearby offerings and make sure that nothing is overlooked. Improving the connection between buyer and seller will ultimately help drive transaction volume. This system will be supported by a new policy that requires the registration of each piece of real estate, which results in a unique identification number for that property.
  • 9. Better Marketing through Real Estate Tech American company Platform Leaders is set to launch a new piece of tech aimed at real estate investors. The platform provides accurate and documented information on various pieces of real estate and offers specialized analyses by a professional research team. This information is meant to facilitate better investment decisions so that stakeholders can invest with more confidence. Another startup, Lizas, recently launched a platform that identifies real estate investment opportunities and helps people find the ideal properties for their particular needs. The platform, Liza, links buyers and sellers through a chat system to facilitate information exchange.