PHOTO
The Egyptian real estate sector is attracting USD 3.83 billion in investments per year, the chairman of Beta Egypt told Zawya.
Egypt's real estate sector attracts investments of around EGP 30 billion (USD 3.83 billion) annually, but lack of regulation is holding back growth of the sector, said Alaa Fikry, chairman of Beta Egypt for Urban Development.
Fikry told Zawya that a shortage of land and lack of skilled professionals are among the most pressing problems facing the real estate market.
"The real estate sector in Egypt is growing and yet there is no dedicated government entity that is responsible for the sector. Is it the investment ministry or the industrial ministry or the housing ministry?" said Fikry, who is also a member of the board of directors for real estate investment at the Federation of Egyptian Chambers of Commerce.
He said the government should allow the private sector to play a role in urban planning in order to reduce bureaucracy and provide more facilities to investors, particularly local investors.
"Foreign investors get all the facilities from the government, but local investors face several obstacles and bureaucracy," Fikry said.
Established in 1993, Beta Egypt is a shareholding company with a paid-up capital of EGP 77.5 million (USD 9.9 million), according to the chairman.
The Cairo-based firm has injected around EGP 462 million (USD 59 million) of its own funds into the development of its Beta Greens project in the 6th of October City, Fikry said.
The project consists of 480 residential units and is expected to be completed in 2018. The Housing and Development Bank conducted the feasibility study for the project.
Fikry said that the firm could consider an initial public offering in the future. "Beta Egypt for Urban Development intends to offer its shares in the Egyptian stock market, but we are waiting for the right time."
© Zawya 2015
