Ahmed El-Sheikh, the Chairperson of the Egyptian Exchange (EGX), revealed a plan to launch a real estate bourse in the first half of next year, pending the issuance of the necessary legislation. He made this statement during a symposium at the Egyptian Businessmen’s Association.
El-Sheikh said that EGX has already finished the basic system for the real estate bourse, as well as the settlement and linkage system with the real estate registry.
The real estate bourse is a private market for transferring and trading real estate assets. It also enables investors and real estate companies to buy and sell shares in real estate assets or invest in specific real estate projects.
The EGX chairperson said that the launch is awaiting four legislations from the Financial Regulatory Authority (FRA), the Real Estate Registry, the Ministry of Justice, and the Cabinet. He added that EGX started negotiations with the Real Estate Registry to launch a real estate registration unit within EGX’s headquarters. The unit will be dedicated to transferring and advertising real estate assets within 24 hours.
He pointed out that the real estate assets that can be traded must meet certain conditions, such as being registered at the Real Estate Registry for commercial or administrative purposes and generating returns.
He emphasized that the real estate bourse will work in integration with real estate funds, which will help stimulate growth opportunities for the sector and its integration with investment funds and real estate companies.
El-Sheikh also said that the recent amendments to the Capital Market Law and its executive regulations help stimulate real estate funds because of their effective role in increasing liquidity, transparency, and depth of the market and diversifying investment alternatives for investors. They also create unconventional sources of financing for real estate developers and property owners.
The trading process on the real estate bourse starts with the owner identifying the property to be registered and choosing a real estate appraiser to determine its value and the trading units. Then, the owner prepares all the required papers and documents to register the property for trading and makes inquiries from the registry unit.
The real estate bourse records the ownership data of the property owner, who then submits documents to EGX that include a statement from the real estate registration unit. EGX then lists the property data on its database and issues a trading code. EGX informs all parties of the code for real estate trading.