LIVING "By the Real Estate Leaders" Summer 2019 #Issue 18 | Seite 8

Real Estate Exporting:
A Godsend to the
Industry?
The past few years have been turbulent for
the real estate industry to say the least. The
economic scene changed drastically
throughout that time, and as a result, the
purchasing power of Egyptians was deeply
impacted due to many factors, most
prominently the floatation of the EGP. With
prices increasing beyond the reach of most
Egyptians, it was necessary for the real
estate industry to tap into the bigger
global market. Real estate exporting was
the most logical next step. This would
mean that developers and property
owners can market and sell their units to
foreign buyers, or Egyptian buyers living
abroad, who can pay for the unit with
foreign currency. This idea first manifested
as the “Beit Al Watan” housing project,
which targets Egyptian expats who would
pay with foreign currency for a property in
Egypt.
Moving swiftly on this evidently promising
direction, Minister of Housing Mr. Mostafa
Madbouly announced the adoption of a
new policy to facilitate the selling of real
estate to foreigners and Egyptians living
abroad. Following that, Mr. Amr Nassar,
Minister of Trade and Industry, activated
the Real Estate Export Council. After which
the government joined forces with the
private sector, and started participating in
a number of regional and international
exhibitions to promote the concept of
investing in Egyptian real estate.
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Faith in this new direction spread quickly, due to its many obvious
benefits. According to Mr. Khaled Nasser, Chairman and Regional
Director of RE/MAX Egypt & UAE, the overall global real estate export
market is estimated at two trillion dollars, while Egypt’s share does
not exceed 2%; making it a promising market that can have a
positive impact on Egypt’s income and the overall economy.
“Exporting real estate certainly is a marvelous idea, because it helps
all parties in the equation: the country, and the community, and it
increases the market movement,” Mr. Nasser states.
If this cooperation between the state and the private sector is an
indication of anything, it would be the fact that this could help solve
several issues the economy is facing. First of all, the decline in the
purchasing power of most Egyptians after the floatation of the EGP,
which meant that most real estate units up for sale were left
untouched. Second, the economy’s need for an influx of foreign
currency. Both of these issues would be addressed by real estate
exporting as property prices are quite affordable to foreigners and
Egyptians living abroad. This will result in reviving the real estate
market and bringing in the much needed foreign currency.