A number of major real estate investors operating in Egypt have voiced concerns over obstacles affecting the growth of the industry, and hence their businesses. The most prominent of these obstacles include an increase in the price of land, lack of vision, and absence of trained labor, reported Daily News Egypt.
These concerns were discussed during the opening session of the CityScape conference, a major industry event. During the same session, 50 leading officials from Egypt’s real estate sector presented investment opportunities and proposals for the coming period, in accordance with Egypt’s 2030 development plan.
Hussein Sabour, Chairman of Egyptian Businessmen’s Association (EBA), said the main reason behind the increase in the price of land is the state’s continued monopoly over the sale of land, adding that the government should focus more on monitoring the operations governing land offerings, rather than maintaining its contractor-like approach. Adding to this point was Ahmed Shalaby, Managing Director and Board Member of Tatweer Misr,, who noted the need to diversify and facilitate the means of land offerings.
Maged Sherif, Managing Director and Board Member of SODIC, explained that developers have submitted proposals to purchase 70 pieces of land offered in a number of cities, while no investor has submitted a proposal to buy lands offered in large urban cities. Sherif claims that this reflects the investors’ rejection of the government’s land offering procedure and the unjustified increase in costs. A sign, he says, that proves the state is incapable of successfully attracting investors and completing urban development goals.
Addressing new regulations governing the real estate sector, Sherif stated that the government and developers must maintain effective communication channels to ensure that proposals submitted by the developers are met with a response. In addition, both sides should agree on a package of rules that ensures the improvement of investment mechanisms.
Similarly, a delegation from the Saudi Egyptian Businessmen Association (SBA) has voiced concerns to the Minister of Investment, Dalia Khorshid, regarding obstacles impeding possible Saudi investments in Egypt, one of which was land licensing, while the rest revolved around government decisions, reported Al Mal.