The export of real estate’s value in the world is estimated at $2tn, while the size of the real estate industry (buying and selling) is estimated at $250bn annually, according to Mohamed Montasir, CEO of Egyptian Experience.
Montasir said that the volume of real estate purchases of British people from foreign markets is about $12bn annually, due to the high real estate tax in Britain, which is close to 40% of the value of the property, which makes British citizens prefer to buy property outside their country.
Montasir added that the export of real estate in Egypt has achieved positive results due to Egyptian real estate being less expensive compared to the global market.
He noted that the most important challenges facing the export of Egyptian real estate are a shortage of legislation regulating real estate export and a property registration problem, which is a problem for Egyptian as well as foreign citizens.Montasir called for developing the legislative structure, especially in the touristic areas that developers work in, and the development of infrastructure, especially airports, which are relying on the absorption of the number of tourists in the city.
“Egypt needs $12bn annually from the tourism industry, which will be achieved by providing strong infrastructure,” Montasir said. “The unified contract is one of the necessary guarantees for the export of property and some developers have problems in understanding the law regulating property export and they are in need of identifying the legal needs of foreigners. Egypt is still a virgin market in the field of industrial development and medical tourism.”
He pointed out that Egypt needs investments of $750bn to be directed to infrastructure projects.
For his part, Mario Volpi, sales manager at Engel & Völkers, a German company, said that Dubai’s experience in exporting real estate began in 2002 when it allowed ownership by foreigners in a certain area, but there were a number of challenges that faced the initiative, including delayed implementation of various projects.
However, Dubai has developed a framework to be able to supervise investments on land owned by the state.
Volpi added that there is a regulatory body that provides licenses to real estate marketing companies to ascertain the company and the project being marketed.
He pointed out the rise in the interest rate in the Egyptian market compared to the decline in the interest rate of the market of Dubai, which makes the UAE more attractive than Egypt.
Daily News Egypt