May 31 2012 |
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Developers still fighting Mubarak-era problems
Thursday, May 31, 2012
The Egyptian property market is being crippled by legal uncertainties and ongoing land disputes with local and regional developers.
The fall of former president Hosni Mubarak last year brought about land ownership disputes between investors and former regime members. These have turned into heated legal disputes.
“The industry at large remains crippled by that have not yet been resolved. These uncertainties, to some extent, restrain developers from launching new projects on their residual land plots. They also limit the appeal of ongoing developments that are burdened with potential legal risks,” said Jan Pawell Hasman, associate vice president of equity research at EFG-Hermes.
A wave of copycat lawsuits against local and regional developers challenging the legal status of their land holdings has undermined market confidence heavily, Hasman said.
The government alone cannot provide the needed housing supply due to limited funding and the private sector must increase its involvement but this requires some reforms, he added.
“The regulatory framework governing real estate investment and land-related transactions should be re-designed in a way that would restore trust between market players and its regulators,” Hasman said.
By Deena Kamel Yousef
© Gulf News 2012. All rights reserved.
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