Chairman of Egyptian Stock Exchange (EGX) Mohamed Farid said Egypt’s property sector has managed to log a market capitalization of at least EGP 80.2 bn in 2018, with 36 real estate firms listed at an 18% return on equity, emphasizing the pivotal role of listing in real estate development, Invest-Gate reports.

So far, the combined capital of six large-cap companies, including Talaat Moustafa Group (TMG) Holding and Palm Hills Developments, inched up to EGP 14.5 bn, compared to EGP 1.5 bn pre-listing, Farid confirmed on June 16, during his panel at the fifth edition of “Builders of Egypt” forum in Almasa Hotel, east Cairo.  

Currently, the government seeks to launch more Real Estate Investment Trusts (REITs), which significantly contribute to lowering investment entry cost, providing higher flexibility, diversification, value appreciation, as well as, generating short-term income, Farid unveiled.

The chairman said the country has only one REIT operating nationwide and it generates 6.5% of dividends yield in the MENA region, adding that such figure needs to grow soon.

Aiming to fulfill Egypt’s impending need for constructing a large and proper infrastructure in all different aspects, while displaying available opportunities for developers in African and Arab countries, Builders of Egypt is one of Egypt’s largest and most important events in the construction industry. The annual event is held under state support, with a view of improving the investment environment in the real estate field and comprehensive development and consolidating public-private partnerships in the MENA region.