As reported by Business Today Egypt and other Egyptian publications, the Egyptian Businessmen Association (EBA) reports that 95% of real estate in Egypt is unregistered. This is restricting the country's real estate growth, according to one of the association's leaders.
Alaa Fekry, the EBA's First Vice-Chairperson of the Real Estate Development and Contracting Committee, says the absence of registration harms real estate wealth. He also expresses that it restricts the achievement of national goals such as property exports and attracting international investments. So, the Egyptian real estate market must make progress to improve the registration process.
CHALLENGES IN REGISTRATION
The poor registration rates, according to Fekry, are due to bureaucratic procedures and prolonged processes. But, the government has implemented initiatives to battle these low registration rates. They altered Law No. 114/1946, which oversees real estate registration, and passed Law Nos. 177/2022 and 9/2022. More progress could come with new technology.
THE NEED FOR AN INTEGRATED ONLINE SYSTEM
Fekry expresses how adopting a sophisticated integrated internet system and database would offer huge benefits to Egyptian real estate. He highlights how this proptech innovation could solve the present issues by streamlining real estate transactions. A system like this will allow for smooth monitoring of purchasing and selling activity and provide up-to-date information on available projects in the local market.
A database would include information about the market's size, the number of projects available, and other investment prospects. This information would help developers ensure the effective execution of projects. So, creating an extensive database like this would, according to Fekry, prove a strong way to preserve wealth in the Egyptian real estate market.
The application of integrated online systems has already proved successful in Saudi Arabia when the Saudi PIF launched its national real estate registration services company last year. Therefore this is a system that the Egyptian government could take inspiration from within its real estate sector.
PROCEDURAL CHANGES AND SUCCESSFUL EXAMPLES
Also, Fekry calls for procedural reforms and stresses the effectiveness of the New Urban Communities Authority's land sale mechanism. He emphasises the significance of streamlining procedures and altering the mentality of some workers who have hampered the use of state-granted facilities to establish an appealing business climate. Simplifying land registration procedures would also make it easier for purchasers to register units. So, Fekry has a strong argument here.
DIGITISING REAL ESTATE DOCUMENTS
Fekry ends by emphasising the significance of digitising property records and storing them in a government database. This measure would boost foreign buyer trust, streamline commerce, and speed up the transfer of ownership to overseas investors.
SOLVING THE LACK OF REGISTERED REAL ESTATE IN EGYPT
The lack of registered real estate in Egypt is a cause for concern. It makes tracking transactions, and monitoring procedures difficult. But as Alaa Fekry conveyed, there is hope going forward with a strategic approach.
Fekry hopes that by adopting an integrated internet system, adopting procedural reforms, and digitising property records, a fall in unregistered real estate in Egypt will occur.