Expect BusinessmenThe real estate sector sales improved in the second half of 2021, driven by several factors, most notably the increase in demand and presidential initiatives for real estate financing, in addition to the imminent opening of the first phase of the new administrative capital, stressing that the first quarter witnessed a significant improvement in sales, based on the results of the development companies ’work. Real Estate listed on the Egyptian Stock Exchange.
In this regard, Fathallah Fawzi, Vice President of the Egyptian Businessmen Association, said that the real estate sector is witnessing a remarkable recovery in the volume of sales in the first quarter of 2021, based on the results of the work of the major real estate development companies listed on the Egyptian Stock Exchange, which achieved huge sales during the last period. This is evidence of the need to revitalize investment in the real estate sector to create new projects to accommodate demand and population increase, and at the same time employ more employment and increase the sector’s contribution to the national product.
Fawzi added to “The Seventh Day” that despite the increase in sales, there is still a challenge facing real estate developers, which is the speed of issuing project licenses, which are delayed for long periods, indicating at the same time the great improvement in the speed of issuing the ministerial decision to establish projects, but the licenses are especially from the devices. Local still takes too long.
For his part, Dr. Mahmoud Al-Adl, Chairman of MBG Real Estate Development Company, expected an increase in real estate sector sales during the second half of 2021, supported by 3 main factors: Firstly, the increase in demand for real estate during the next three months, which coincides with the return of Egyptians abroad to spend the summer vacation in Egypt and the search for this segment for real estate either for the purpose of housing or investment, secondly, the economic and health situation in the country has improved as a result of increased vaccination with the Corona vaccine and the continuing launch of major national projects that contribute Effectively in achieving the target of economic growth, noting in this regard the huge efforts made by the political leadership and the government with the aim of continuing to achieve one of the highest rates of economic growth in the world.
Al-Adl added, in press statements, that the third factor behind the expectations of an increase in real estate sales in the coming period is the possibility of the Central Bank to resume reducing interest rates if Egypt is included in the JPMorgan index of bonds in emerging countries in local currencies in the second half of the year, which will pay a portion of Citizens pumping part of their savings from banks to the real estate sector, indicating that the Administrative Capital will remain at the forefront of demand for real estate, and what increases its competitiveness near the government’s transfer to work from it, and prepares a global celebration for the opening of a large number of first-phase projects.
Mahmoud Al-Adl pointed out the importance of the revival of the real estate sector in Egypt, given its significant impact on the gross domestic product, which amounted to 15.2% for real estate, construction and building activities in the last fiscal year 2019/2020, in addition to employing 3.4 million workers, representing 12.9% of the total number of workers in Egypt. According to the latest report of the Statistics Authority, in addition to activating about 100 industries and crafts related to the real estate sector, and at the same time supporting the state’s plans to increase the area of the globe from only 7% at the present time to 14% in 2052 by injecting billions in investments to establish urban projects and provide thousands of units. Residential annually.
The President of MBG Real Estate Development Company praised the state’s efforts in urban development, both through the completion of 90% of the construction of 17 new cities that have been started since 2014, and the completion of 20% of 8 new cities that were started two years ago, which contributed In offering many investment opportunities for developers, or facilitating the investment environment in the real estate sector through the multiplicity of land allocation mechanisms instead of relying solely on the bidding system, and proposing projects for partnership with the private sector that reached 17 projects with an area of 19.25 thousand feddans with a total investment of 500 billion pounds, and the speed The issuance of the ministerial decision, adding that the state is implementing the largest number of new cities in Egypt’s modern history, an achievement to be reckoned with for the political leadership.
Eng. Ahmed Amin Masoud, a member of the New Cairo and New Administrative Capital Developers Association, agreed with him about the expectations of the real estate sector sales boom in the coming period, referring to several reasons, most notably the imminent opening of the New Administrative Capital project, which is being implemented according to the latest technological systems in the world with international foreign expertise and by Egyptian hands. Which has qualified the Administrative Capital to become the digital Arab capital for the year 2021, with the efforts it embraces to achieve digital transformation and stimulate digital creativity and creative thinking in a smart environment, adding that the use of modern technology will contribute to providing the quality of life for citizens in the capital, and at the same time attracting major technology companies Al-Alamiah for investment, whether in capital projects, setting up projects there, or even using the administrative capital’s data center.
Ahmed Masoud pointed out the importance of the presidential initiative to provide real estate financing with an interest of 3% and a payment period of up to 30 years, to contribute to the revitalization of the real estate sector by attracting the largest number of the limited and middle-income segment, who are the most demanding groups to buy real estate but do not have the financial capabilities and income levels. Which qualifies it to own suitable housing, and the initiative also contributes to reviving the resale market, which will create greater demand on the residential real estate market and push developers to expand and implement more projects to implement a product that matches the terms of the initiative, and at the same time it will contribute to the introduction of new segments of customers in the banking sector. To achieve financial inclusion.