Opinion: Real Estate Road Remains Bumpy

Opinion: Real Estate Road Remains Bumpy

By: Mohamed Fouad, Invest-Gate’s Managing Partner

There is no doubt that the real estate industry is one of the major contributors to the country’s growth domestic product (GDP). It is a long real estate development journey that we started and are moving ahead, yet the road remains challenging.

Given the size of the real estate industry and its value, regulations are required to sustain its success in the long term, especially with the government’s ambitious and sought-after strategic plan.

Regardless of the type of audience, whether local or foreign investors, we need to be very well organized. We need to understand our strengths and weaknesses to achieve proper and sustainable growth. We need to have a well-integrated development plan that includes all the needed infrastructure and other vital facilities, as well as, the developers who can contribute to the plan in a realistic timeframe. To achieve that, a regulation authority or a regulatory body is needed to achieve the government’s strategy, studying its current status, and foreseeing its future in a scientific and factual manner. We hear a lot of opinions but no one in Egypt can see where the real estate industry is going. Moreover, we see new developers and brokers entering the market every day, and this can hinder the industry’s growth in the future if this process is not organized. A regulatory body should be formed to set criteria for all market players to have a more organized framework, serving its path to prosper.

I believe this is where our role came into play. Invest-Gate throughout the past two years has been studying the market, highlighting its strengths and weaknesses, opening doors for investment opportunities, and addressing some of its challenges. I believe that our work has supported the state’s general growth plan and somewhat put it in a more organized platform. We presented what’s happening on the ground and by that, I believe we have managed to assist those working in the industry from the government officials to private entities in understanding the market.

One of the main growth drivers is the real estate exports, which Invest-Gate proudly played a major role in. Coherently, Invest-Gate, along with the leaders of this market, started to build a strategy for promoting our real estate market abroad. We don’t promote this sector solely but we promote the country as a whole with its economy, its security, and its livelihood.

We have also helped in developing a more open communication channel between the government and the private sector. There are many developments across Egypt with major expansions into new cities, which are progressing at a high pace. However, there is a lack in the availability of statistics on the value of investments pumped into these projects. This calls for a transparent follow-up on the performance and evaluation of such projects to be provided by the official bodies. Additionally, transparency is crucial and the fact that we can track the actual performance of listed developers only does not reflect the market’s standing point.

And here comes Invest-Gate to the rescue as we continue to address those challenges from an analytical perspective and supporting the real estate market players on regulating the industry to touch upon the emerging opportunities and eliminate any risks. Generally, we are moving forward, but the road remains bumpy, yet Invest- Gate promises to continue playing its role in developing the market and giving a true “Voice of Real Estate.”

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