Akhbar Al Youm held its fifth economic conference on December 22-23, under the auspices of President Abdel-Fattah El-Sisi, Invest-Gate reports.

During the “Urban Development and Industrialization” session held on December 23, Chairman of Talaat Moustafa Group Holding (TMG Holding) Hisham Talaat Moustafa said the real estate sector contributes to 30% of the country’s gross domestic product (GDP).

He stressed that one of the crucial problems facing developers in Egypt is the lack of funding, calling on the government to develop an alternative mortgage finance mechanism with an interest rate that is proportionate with citizens’ income to revive the sector’s sales.

Moustafa asked the government to develop mechanisms to support the private sector by involving them in urban development projects carried out by the government.

The chairman denied that the market is suffering from deceleration, noting that “the market mechanism of supply and demand changes.”

In addition, Moustafa called on the government to support developers by providing land at affordable prices, as well as offering plots through the build-operate-transfer (BOT) system for the implementation of infrastructure projects.

Meanwhile, Mohamed Sultan, CEO of Palm Hills Developments, affirmed the strength of Egypt’s real estate market, highlighting that despite the rise in projects implemented recently, the number is still less than required, especially that the Egyptian market needs approximately 30 mn housing units within the upcoming 30 years.

Sultan pointed out that 2019 is the year to correct the track of real estate sector and to meet challenges experienced in the past two years, which resulted from economic reform decisions that were extremely necessary to save the course of the economy – even if it resulted in burdening the citizen.

He commended the activation of the mortgage and bank financing for companies and customers, stating, “Real estate developers currently act as a financier and a developer at the same time.”

Sherif Heliw, chairperson of Marseilia Group, said that banking finance is necessary for the forthcoming period, expecting next year to witness more cooperation between developers and the banking sector. He underlined that the latter should participate in financing units with areas of 90 square meters, in a way that suits the income of Egyptian citizens.

Heliw called on the state to sell lands with required infrastructure to lure more investors, while also demanding the unification of state authorities eligible for the sale of land and licensing procedures for projects in the North Coast as a single entity.