Translation: Wael Hossam
The real estate sector is currently facing several challenges, including high inflation rates, the increase in building materials prices, and the interest rate. This, in turn, requires the cooperation of all parties working in the real estate sector to overcome these challenges.
Here comes the role of real estate brokers, which is not less important than other industries that support the real estate sector, in light of the great importance that this vital sector occupies for the national economy. Therefore, Invest-Gate speaks to real estate experts to highlight the role of the real estate broker in overcoming all the challenges the sector is currently facing.
Brokers Being Base of Real estate Deals
Recently, the real estate market has witnessed a decline in purchases. Therefore, the presence of a real estate broker greatly contributes to facilitating buying and selling deals and making them more flexible. The presence of a real estate broker has become imperative in real estate purchase and sale transactions. The real estate broker’s knowledge of the real estate trade in the market and its special conditions is the most important thing that an individual always searches for to build a successful plan to obtain his real estate goal.
The annual report of “AqarMap”, issued in October 2022, showed that real estate marketing companies’ commissions for administrative units in the NAC has reached 9%, achieving the highest commission inside Egypt, according to the analysis of the Egyptian real estate market, monitoring its trends and customer preferences.
Regarding the problems facing real estate brokers, Mohamed Habarir, CEO of Smart Location Real Estate Company, explains that there is a pricing problem for developers, due to the high price of the dollar and an increase in the prices of building materials. Thus, the developer is unable to make decisions properly; whether the selling process continues or is there an increase in prices in the coming period.
Habarir adds that a good real estate broker cares about the customer so that he does not fall into any problems during the coming period with the developer. This could be done by purchasing ready-made units because their pricing is easy, unlike units under construction, so that the customer does not face price fluctuations and changes.
Brokerage Companies’ Plans
Real estate brokerage companies seek to develop urgent strategies and solutions commensurate with the challenges of the coming period. However, real estate brokerage companies are making more efforts to facilitate buying and selling processes, and attract investors to revitalize the real estate market.
Habarir emphasizes that real estate brokers are considered one of the most influential factors in the real estate system, stressing the need to train and qualify them to deal with the requirements of the real estate market, and to educate and educate those in charge of the activity, and that their goal is not just to profit only, but to cooperate with real estate developers, out of this crisis.
Habarir indicates that his company provides training courses for employees to spread knowledge and awareness of the challenges of the current period, and how to find innovative mechanisms to confront them.
This process should be implemented by carefully selected specialists, which qualifies employees to work properly in the real estate sector.
Furthermore, Alaa Fekry, member of the Board of Directors of the Real Estate Investment Division at the Federation of Egyptian Chambers of Commerce (FEDCOC), stresses the importance of spreading knowledge based on scientific foundations to participants in the real estate sector. This will increase the rate of transparency and confidence in the Egyptian market, to become more attractive and able to compete with the regional markets.
Fekry explains that the real estate buyers’ journey must be safe regarding quality and value; a professional real estate broker is considered one of the most important sales channels. Real estate brokerage companies must develop professional training programs that help brokers improve performance and achieve successful deals with the fastest time and least effort.
The Government Efforts
In December 2021, the Cabinet approved a draft law amending some provisions of the law regulating commercial agency business, and some commercial and real estate mediation work, promulgated by Law No. 120 of 1982; To meet the expansion in real estate brokerage activity, by introducing new rules and texts regulating the activity of real estate brokers, by international standards required by the recommendations of the Financial Action Task Force.
Habbarir points out that the real estate mediation law is a step on the right path to regulate the real estate market and eliminate randomness, stressing the need to activate it for everyone and quickly, to reduce the challenges facing the real estate sector, as this will contribute to attracting investors and improving economic conditions significantly.
Thus, we find that the real estate broker reflects the entire sector. The first thing a foreign investor looks for is the broker, being the first gateway through which one must cross to own the property.
Brokers have a vital role in creating a positive impression among investors, encouraging more investments in the real estate sector, promoting wellness, and creating added value to the Egyptian economy, contributing to the current challenges.