Exporting real estate has become one of the common goals among different stakeholders in the Egyptian real estate industry and that comes in line with the government’s efforts to open the business field for foreigners so they can own more properties.
This has been one of the main topics discussed at Invest-Gate Real Estate Tourism Development Roundtable held at the Nile Ritz Carlton Hotel on October 23, during which major real estate companies highlighted the most important obstacles and opportunities of the real estate exports in Egypt.
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The following are the key points everyone should take into consideration when addressing the Egyptian real estate exports issue:
- More Facilities Needed Outside Central Cairo
Egypt has various opportunities to promote for such as medical tourism, which is considered one of the luxurious aspects of tourism. “Healthcare is one of the factors that affect foreigners’ investment decisions,” Kelly Crosbie, COO and owner of KW Panama, said during the roundtable.
“A strategy to attract foreign investors needs to offer more choices in terms of price, qualit, and specifications, but also combine it with healthcare and wellness and more importantly emphasis must be placed on the community living by offering more retail and F&B, and family entertainment to enhance the offering. North Coast, for example, can be developed into a truly education hub by offering a number of activities offering around education sector.” according to Mansoor Ahmed, director of healthcare, education, and PPP at Colliers International MENA.
For his part, Vice President of Coldwell Banker Mohamed Banany noted that Egypt has various touristic places that must be made use of such as Hurghada, Ras Sudr, and Sharm El Sheikh.
- Units’ Quality Matters
Nowadays, foreign homebuyers look for units that are luxurious with in-house facilities that make his/her home more different and unique and also to add more value to units so that they can be resold with a higher price compared to other usual units.
Units supplied with premium services such as high security technologies, trash circulation systems, housekeeping, and maintenance make the owners’ lives easier.
Managing Director and Board Member of Tatweer Misr Ahmed Shalaby stressed during Invest-Gate’s roundtable the importance of offering high-end units that are fully finished and furnished.
- Rules & Regulations Play a Role
Till now, Egypt allows foreigners to own a property only if they have a business in the country. This is unlike the UAE which has allowed now foreigners to own properties and live there without such condition.
Among many challenges, bureaucracy is contributing to attracting a low percentage of foreign buyers; the slow processes along with hard terms and regulations make some foreigners avoid buying units in Egypt.
There are still some issues in terms of registration and insurance of units, stating that solving such obstacles means solving 70% of exporting real estate problems, Samir Bahrawi, CEO of Bahrawi Investment Company notes.
Mortgage as well is one of the factors that may lure foreigners to own properties in Egypt. Banany confirmed that facilitating the provision of mortgage through international banks may positively affect the demand on Egyptian properties by foreigners.
- Different Techniques to Promote Real Estate Abroad
Adding branded residences to the compounds can attract more foreign owners as it raises the credibility and popularity of the compound.
“Investors are mainly focused on getting a better return on their investment, the current economic climate has been a significant factor in promoting Egyptian property as a distinctly affordable and safe investment offering a myriad of high-quality solutions; especially when compared with other countries across the Mediterranean,” Mohamed Younis, CEO of ERA Commercial, states.
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“The country possesses the resources that enable it to compete with other surrounding destinations, it’s not a matter of choosing one aspect over the other but identifying our strengths, finding where our advantages lie and develop the necessary tools to create opportunities,” Younis concludes.
To learn more about this topic, read our article “Real Estate Exports: What Hinders Egypt?” at pages no. 36-38, or find our printed edition at these locations.