The Real Estate Development Chamber at the Federation of Egyptian Industries has proposed some ways to implement the government’s initiative that allows property companies to sell their projects abroad in dollars. The chamber’s board members and other real estate developers met with officials from the Ministry of Housing, Utilities, and Urban Communities to discuss the initiative.
The meeting also included Walid Abbas, the Vice President of the New Urban Communities Authority for the Planning and Projects Sector and the Supervisor of the Office of the Minister of Housing, Abdelkhalek Ibrahim, the Assistant Minister of Housing for Technical Affairs, and Tarek Shoukry, the Undersecretary of the Housing Committee at the House of Representatives and the Chairperson of the Real Estate Development Chamber.
Shoukry said that this initiative shows the government’s strong interest in real estate export and that it benefits all parties involved in the real estate system, whether they are the government, the client, or the real estate developer. He added that ideas must be developed to create attractive and successful mechanisms that benefit all parties.
He explained that this initiative helps the government by providing urgently needed hard currency, and the real estate developer by receiving the value of the unit, which can be used to develop existing projects or expand new investment opportunities. The client can also benefit by buying a unit with investment incentives of up to 80% of its value.
Shoukry noted that the chamber suggested some proposals that would help achieve the initiative’s goals and bring the best results for the Egyptian economy and the real estate companies.
He said that the proper application and provision of incentives are factors that ensure a high dollar return that supports the Egyptian economy. He also said that the meeting discussed the initial proposed incentives from real estate developers to encourage foreign clients to buy property in Egypt and to promote their projects abroad.
Shoukry revealed that the chamber is continuing its discussions with the officials of the Ministry of Housing and the relevant authorities to reach an effective mechanism for implementing this important initiative, especially in light of the Ministry of Housing’s openness and willingness to listen to any applicable proposals that would benefit the local economy and the real estate market.
Prime Minister Mostafa Madbouly announced a government initiative to allow real estate companies to sell units abroad in dollars, which would support exports and provide hard currency for the Egyptian economy. Alaa Fekry, the First Vice Chairperson of the Real Estate Development and Contracting Committee at the Egyptian Businessmen Association, said that according to the proposed mechanisms, the state would pay the price of the units that are part of the unit value to the developer in local currency, and the payment would be made in installments.
He stressed the importance of creating incentives to motivate developers to join the initiative.
Fekry suggested signing an agreement between the state and the developers to direct the value of the units to the developer who participates in the initiative to buy plots of land from the New Urban Communities Authority for developers who want to expand. He said that this would ensure the fast flow of liquidity in buying lands, avoid the effects of inflation and the changes in costs, and ensure quick capital turnover.
He pointed out that real estate companies face challenges in obtaining suitable lands and have real aspirations for expansion.
Fekry explained that this solution guarantees the achievement of the state’s goals in accelerating growth and development as well as provides a large portion of liquidity for companies because they will be given land in exchange for units and developers will be committed to paying installments and this will also stimulate this. It is proposed that a large number of companies own a portfolio of units ready to enter the initiative.
He further called for the rapid implementation of the initiative once its mechanisms are finalized and agreed upon, to quickly introduce foreign currency into the country and limit the decline of the pound value as a result of the scarcity of hard currency and the speculation operations that have deepened the difference between the official and unofficial price.