Mohamed Sultan, the CEO of Palm Hills Developments, said that 13% of the company’s sales was for foreigners by the end of 2018, and the company aims to increase this percentage to reach 20% in the current year.
Sultan noted that the need for housing from various residential segments is still present, but the problem is the existence of a gap between the purchasing decision and the purchasing power of customers, which represents the main challenge to the market during the coming period.
He added that the market should focus its efforts on the creation of new solutions to bridge the gap between the purchasing decision and the purchasing power of customers, which would enable developers to market their projects, and to further develop the real estate product according to recent market changes.
Additionally, he emphasised the distinction of the Egyptian real estate, its importance, and its competitive advantage as it offers lower prices, in comparison to the markets which surround Egypt.
For his part, Tatweer Misr’s Managing Director and board member, Ahmed Shalaby, said that 85% of real estate companies’ sales during the past year were for investment purposes, compared to 70% in 2017.
Shalaby called on the government to activate the mortgage finance systems and to increase the export of property. He also called on the real estate developers to expand, as well as to launch new businesses and integrated development projects in the Delta and Upper Egypt regions.
The state should be responsible for developing the infrastructure in new cities, then exit in due time in order to leave the space for the private sector, Shalaby pointed out.
Meanwhile, Amr Noureldin, the legal advisor to the CEO at the General Authority for Investments, said that granting affordable lands to investors is the main problem which could hinder the flow of foreign direct investments to the Egyptian real estate sector, noting that the ministry of investment is keen on addressing this problem through the provision of integrated investment zones.
Noureldin added that ministry launched three investment zones in Banha, Meit Ghamr, as well as El Saf cities, and developed five new zones.