Gate Leads an EInvestxpanded Dialogue on Establishing the Egyptian Real Estate Developers Association

Invest-Gate held its 29th roundtable entitled “Towards an Egyptian Real Estate Developers Association” on Wednesday, September 23, 2026, at the Nile Ritz-Carlton Hotel, ‘Alf Leila We Leila’ Ballroom.
Amid the growing role of the real estate sector as one of the key drivers of the Egyptian economy, and its significant contribution to investment, employment, and economic growth, the market’s increasing scale and diversification created a growing need for greater organization and institutionalization. As the sector continued to expand and business models and projects became increasingly diversified, developers faced growing challenges related to evolving legislation, rising development costs, financing challenges, and changing customer expectations. This made enhanced coordination and dialogue among industry stakeholders essential to supporting the sector’s sustainable growth.
Against this backdrop, discussions around establishing the Egyptian Real Estate Developers Association gained increasing importance, particularly amid the expanding market base and the growing diversity of developers and projects. A unified professional entity could provide a more organized framework for representing the sector, enhancing dialogue with government and regulatory authorities, and contributing to the development of policies and regulatory frameworks governing the market. It could also support governance, transparency, and professional standards, ultimately strengthening investor and consumer confidence.
The roundtable brought together senior government officials and executives, real estate developers, alongside experts and specialists to discuss the role and potential value for developers and customers. Discussions covered the provision of services, resources, and initiatives that address common challenges, support knowledge and market data sharing, enhance collaboration among various industry stakeholders, and explore the best approaches to ensuring balanced representation of developers across different sizes and business models.
The roundtable shed light on the role the Association could play in establishing clearer standards for conducting real estate development activities, enhancing governance and transparency, supporting self-regulation and the exchange of knowledge, market data, and best practices, as well as providing more effective mechanisms for addressing challenges and disputes. This could contribute to strengthening trust and credibility across the market, while also exploring the practical value that membership could provide to developers through services, resources, and initiatives that support their businesses and enhance their ability to address common challenges.
Within this framework and building on the growing role of the real estate sector in the Egyptian economy, the roundtable also discussed the potential contribution of the Association to enhancing the market’s competitiveness and investment attractiveness, supporting real estate exports and attracting international investments, while encouraging innovation, sustainability, and digital transformation. It also explored opportunities to facilitate partnerships and the exchange of expertise at regional and international levels, strengthening the sector’s ability to keep pace with market developments and achieve sustainable long-term growth.
The discussions also addressed the most appropriate framework for the Association considering ongoing government efforts to prepare a draft law regulating the real estate market and establishing the proposed developers’ professional body. The proposed legislation includes provisions related to developer registration, classification, professional standards, governance, representation, customer protection, and the regulation of real estate development activities. With the draft currently under discussion, the roundtable provided an opportunity to explore the perspectives of industry stakeholders on the proposed framework and the role that an effective professional body could play in supporting a more organized, transparent, and sustainable market.
The roundtable discussed the role that the Egyptian Real Estate Developers Association could play in supporting the state’s efforts to regulate and develop the real estate market and strengthen cooperation between developers and government entities. It also addressed governance, membership, and representation mechanisms, as well as the priorities that could contribute to building an effective entity that serves the sector and supports its growth and competitiveness.
The roundtable was held through a series of dialogue sessions, chaired and moderated by Mr. Amr ElKady, Founder and Managing Director of AKD Advisory, to discuss the importance of establishing the Egyptian Real Estate Developers Association and its role in unifying and representing the sector and strengthening cooperation with relevant authorities.
Participants included: Eng. Khaled Sedeik, Chairman of the Board of Urban Development Fund; Dr. May Abdel Hamid, CEO of Social Housing and Mortgage Finance Fund; Eng. Mostafa Abdel Wahab, CEO of Tourism Development Authority (TDA); Eng. Tarek Shoukry, Chairperson of the Real Estate Development Industry Chamber and Chairman of the Economic Affairs Committee at the House of Representatives; Eng. Tarek ElGamal, Chairman of Redcon Properties,
The roundtable sessions were further enriched by the participation of: Prof. Tarek Azmy Elsheikh, Director of Urban Training and Studies Institute, National Housing and Building Research Center; Dr. Bahaa Salem, Group President of Al Salem Holding; Dr. Raymond Ahdy, CEO of Wadi Degla; Eng. Ahmed Ehab, CEO of Madaar Developments; and Mr. Mostafa Salah, CEO & Board Member of One of One.

Ms. Safaa Abdel Bary, General Manager and Business Development Director at Invest-Gate, opened the roundtable by expressing her thanks and welcoming the attendees, conveying her pleasure at having a distinguished group of decision-makers and experts present at the meeting.
She affirmed that the meeting comes in response to the need to present a clearer vision for regulating the sector and developing its working mechanisms. It also represents an important platform for exchanging views and discussing a number of key issues, foremost among them dispute resolution mechanisms and the role of the professional registry, in addition to exploring ways to enhance market efficiency and formulate practical visions and recommendations that enrich the dialogue around establishing the Egyptian Association of Real Estate Developers, and defining its anticipated role in representing the sector and supporting the development and regulation of the real estate market.
In closing, she expressed her thanks and appreciation to the attendees and participants, expressing her hope that the discussions would contribute to reaching practical visions and recommendations that support efforts to develop and regulate the real estate sector and enhance cooperation among its various stakeholders, thereby enriching the dialogue around establishing the Egyptian Real Estate Developers Association of and its anticipated role in representing the sector and developing the market.
For his part, Mr. Amr ElKady, Founder and Managing Director of AKD Advisory, opened his remarks by extending his thanks to Invest-Gate for organizing this distinguished event, praising the topic of the roundtable and its ongoing role in raising key issues that impact the development of the real estate market. He emphasized that Invest-Gate is the first platform to bring the issue of establishing a Real Estate Developers Association up for discussion following a series of meetings and discussions that have taken place on this issue over the past period, allowing attendees to be among the first participants to discuss this proposal and exchange views on it.
He explained that the establishment of a Real Estate Developers Association is an issue that has attracted broad attention in the public debate, particularly considering the significant momentum it has gained over the past period, followed by numerous meetings between the government and representatives of the sector.
He emphasized that the discussions are based on three main pillars: the first is the draft law on the Real Estate Developers Association, the second is the drafts and discussions that the issue has witnessed over the past period, and the third is Prime Ministerial Decree No. 2184 of 2022.
In the same context, Eng. Khaled Sedeik, Chairman of the Board of Urban Development Fund, noted that four years have passed since the issuance of Decision No. 2184 of 2022 , raising questions about the vision required to transform it into a law regulating the work of the real estate developers’ association, particularly in light of the changes witnessed by the market during this period and the notable recovery experienced by the sector.
He added that establishing the association represents an important step given the sector’s pivotal role in the national economy, as it contributes around 20% of national output, which calls for efforts by both the government and the private sector to maximize this contribution and enhance the sector’s efficiency.
He stressed the need for the anticipated association to regulate the relationship between the government, developers, and consumers, preserve the reputation of serious developers, and protect the market from practices that could harm the sector’s image. He explained that the Chamber had previously played a role that partially compensated for the absence of the association; however, the current stage requires an integrated association capable of regulating the sector across its various aspects.
He pointed out that developers’ participation in preparing the decision represents a positive aspect, stressing the importance of establishing the association based on a participatory vision, with clear and fair criteria for classifying developers according to project size, capabilities, and experience, while ensuring accurate classification and preventing developers from being included randomly.
He explained that diversifying financing mechanisms and disbursing financing in tranches linked to project implementation rates would ensure that it is directed toward serious projects and their completion. He also stressed the importance of providing real estate financing from the early stages of a project, which requires discussions with the Central Bank to develop its mechanisms in line with the needs of developers and the market.
He emphasized the need for the relationship between the developer and the client to continue after the units are handed over and occupied, with attention to project management after operations begin, ensuring the project’s quality and sustainability over the long term. He also called for launching a real estate financing initiative with an interest rate ranging between 10% and 12%, which would support activity in the real estate market and enhance citizens’ ability to purchase units.
He concluded his remarks by affirming that the law will define the main features governing the association’s work, while the executive regulations will include greater detail necessary for implementing its provisions. He noted that the association may undergo certain amendments and developments during the implementation and application stages, in accordance with practical requirements.
Dr. May Abdel Hamid, CEO of Social Housing and Mortgage Finance Fund, emphasized the need to publish clear and accurate data about the real estate market and issue a House Price Index, noting that the lack of data poses a challenge to marketing Egyptian real estate abroad. She expressed hope that the Association would contribute to addressing these challenges and provide a database and clear indicators to support the market.
She explained that establishing a fund to guarantee default risks represent a good mechanism that is applied in many countries. However, its success requires setting clear obligations and regulations governing its operations, ensuring its sustainability, and preventing it from facing future problems. She added that having such a mechanism could contribute to regulating the market and enhancing confidence and reassurance among those involved in the mortgage finance system.
She emphasized the importance of reaching clear recommendations that could help policymakers develop and regulate the real estate sector and enhance investor confidence, noting the importance of activating the Association’s role in supporting the mortgage finance system, alongside studying the implementation of escrow accounts as one of the mechanisms that could contribute to enhancing confidence and market stability.
She stressed the importance of establishing a clear system for classifying real estate developers that serve various sector stakeholders and regulatory authorities, explaining that the volume of business alone is not a sufficient criterion for evaluating a developer. She noted that having a clear classification system would help banks and financing entities assess developers and make clearer decisions regarding financing.
She added that the Social Housing Fund is working to further engage the mortgage finance sector, particularly as demand from low-income groups currently represents the largest segment of demand. She pointed to the increase in the number of financing entities participating from three or four banks at the beginning of the initiative to more than 31 financing entities currently, reflecting the evolving role of mortgage finance and the expanding scope of participation in supporting this sector.
She concluded her remarks by emphasizing the possibility of establishing an interest rate support fund under the Social Housing Fund but questioned the sources of its financing and the sustainability of its financial resources. She explained that the Ministry of Finance could contribute to supporting low-income groups, while the question of financing remains for middle- and high-income segments. She also stressed the need to prepare a unified model contract for real estate transactions, without requiring it to be binding, which would help standardize the basic provisions of contracts and protect the rights of all contracting parties
Eng. Mostafa Abdel Wahab, CEO of Tourism Development Authority (TDA), opened his remarks by thanking Invest-Gate for the invitation, explaining that, according to the Prime Minister’s decision, the Tourism Development Authority treats the tourism investor as a tourism developer rather than a real estate developer. The Authority oversees contracts in its capacity as the administrative authority and entity with jurisdiction, which defines the nature of the relationship between the Authority and the investor and the related areas of responsibility. He noted that this framework clarifies the role of the administrative authority in dealing with the investor and overseeing contracts, without extending to aspects related to the developer’s commercial activities.
He affirmed that the purpose of establishing the Egyptian Real Estate Developers Association is to regulate the relationship between the developer and the buyer, establish a professional framework governing developers’ work, and support the development of practices within the sector. He pointed out that there is one aspect related to the administrative authority with jurisdiction and another concerning the role of the association in regulating the profession and representing developers.
He added that the Authority does not intervene in sales or the commercial relationship between the developer and the buyer. Therefore, there is no overlap in responsibilities between the authorities with jurisdiction and the Egyptian Real Estate Developers Association; rather, their roles complement each other according to the nature of each entity’s mandate, ensuring clarity of responsibilities and regulating the relationship among the various market stakeholders.
For his Part, Eng. Tarek Shoukry, Chairperson of the Real Estate Development Industry Chamber and Chairman of the Economic Affairs Committee at the House of Representatives, pointed out that he has been calling for the establishment of a Real Estate Developers Association for more than 10 years, stressing that the start of discussions on the law establishing the Association represents an important step that keeps pace with the developments taking place in the sector.
He stressed the importance of the real estate sector to the Egyptian economy, as it represents around 20% and includes approximately 6 million workers, with around 30 million citizens connected to it, in addition to its transformation into a field attracting Arab and foreign investors, which calls for regulatory steps that keep pace with its growth.
He explained that the importance of the Association lies in regulating the relationship between the government (authority in charge), developer, customer, contractor, and facility management (FM) companies, thereby enhancing clarity and stability for all parties, while ensuring balance in regulatory decisions and adopting them in a well-considered and prudent manner. He noted that Prime Minister’s Decree No. 2184 of 2022 requires a clear legislative framework through a law issued by the House of Representatives.
He stressed the need for the government to issue a clear official letter confirming the developer’s right to extend the contractual deadline with the unit buyer by the same period granted to the contractor and legally recognized by the state, to ensure equal legal treatment for all parties involved. He also called for supporting the financing of middle-income housing units by offering land at cost, without profit or loss, and providing mortgage finance with support from the Ministry of Finance equivalent to around 10% of the interest rate. He stressed that increasing the supply of these units would contribute to expanding the scope of mortgage finance, creating jobs, increasing tax and insurance revenues, and supporting the middle class.
He explained that the success of the Association could contribute to regulating the market through three main pillars. The first pillar relates to the classification of real estate developers, explaining that the classification currently proposed includes five categories, while he believes it is important to expand it to include seven categories, allowing developers to be classified more accurately according to their capabilities, the size of their projects, and their experience, and helping the relevant authorities better assess their capabilities.
He pointed out that the second pillar relates to protecting buyers and providing clear information to help them assess the developer and the risks associated with the purchase, while the third pillar involves establishing a dispute resolution committee with a clear legal and technical mechanism, alongside calling for specialized real estate courts similar to the Economic Courts.
He stressed that establishing the Association should be part of a broader system for regulating the market, noting that around nine meetings have been held to regulate the relationship between the government and the Real Estate Developers Association, and expecting the procedures to be completed within a month and issued as soon as possible.
He called for the law to comprise two main chapters: the first titled “Real Estate Developers Association,” and the second titled “Real Estate Sector Regulation.” He called for the state to take clear measures to preserve real estate wealth, ensuring balance, neutrality, and fairness among all parties in the real estate market.
He concluded his remarks by stressing that a significant part of the market’s problems is related to the post-handover stage, emphasizing the need to define the developer’s role so that it ends upon the handover of the unit, while establishing specialized maintenance and security companies under the developer’s supervision and oversight, with a facility management (FM) company and an independent auditor to ensure neutrality and quality, preserve the property’s value and the developer’s reputation, and maintain customer satisfaction.
He pointed to the importance of establishing a reference guide for per-square-meter prices and conducting a financial analysis under the supervision of a financial controller, alongside benefiting from international experience in dealing with cases of default. He proposed applying I-Score, whereby the end user’s failure to pay dues on time would affect their credit rating, encouraging regular payments. He stressed the need to establish clear and direct mechanisms for implementing the law in a manner that preserves the rights of both parties and protects real estate wealth.
For his part, Prof. Tarek Azmy Elsheikh, Director of Urban Training and Studies Institute, National Housing and Building Research Center, spoke about the importance of the real estate sector and its role in supporting the economy and attracting investment. He noted the sector’s considerable resilience, as well as Egypt’s promising investment opportunities, particularly in real estate exports, which strengthen the country’s ability to attract further investment.
Elsheikh explained that maximizing these opportunities requires meeting several key investor requirements, foremost among them ensuring legal security and the validity of title deeds, as well as the serious and swift implementation of the National Real Estate Identification Number and electronic real estate registry. He also called for the governance of funds and the establishment of a culture of financial oversight over project accounts through specialized state entities, alongside regular monitoring of completion rates. This would protect investors’ rights, strengthen confidence in the real estate market and create opportunities for foreign investment funds to enter the market.
He added that ease of exit is an important factor in enhancing the market’s attractiveness, alongside simplifying and revitalizing legislation governing the establishment of real estate investment funds. He also called for developing the homeowners’ association system, subjecting maintenance accounts to oversight, and establishing mechanisms for arbitration and amicable dispute resolution. He stressed the importance of establishing specialized real estate courts alongside a pre-litigation dispute resolution system, through an ombudsman providing binding arbitration, while drawing on the experiences of other countries to ensure the availability of an independent body for handling real estate disputes.
He stressed the importance of escrow accounts as a key mechanism for regulating the market and protecting the rights of market participants. He explained that monitoring escrow accounts and regulating the market could be carried out through a specialized authority or relevant state entities within their respective areas of responsibility, supported by a coordination mechanism and electronic governance to ensure real-time market monitoring.
He also highlighted the need to expand disclosure policies and digital access to information through a national real estate observatory supervised by the state, with the Developers’ Union required to periodically disclose information on vacancies, units, and actual sale and rental prices, alongside mandatory official property valuations based on the International Valuation Standards (IVS).
Elsheikh noted that Egypt ranked 61st globally in the Global Real Estate Transparency Index in 2026, compared with Saudi Arabia in 28th place and Dubai in 17th place.
He explained that the index is based on several key areas, including investment performance, regulatory frameworks, market fundamentals and data, transaction processes and facilitation, corporate and fund governance, sustainability and green building. He stressed that improving Egypt’s ranking requires action across three areas. The first is institutional regulation, including transforming existing real estate investment entities into a Developers’ Union or Council to regulate their roles, rankings, code of conduct, and amicable dispute-resolution mechanisms, alongside a mandatory real estate information observatory and a central real estate regulatory authority, following the example of successful markets that have improved their rankings, including India, Saudi Arabia, the UAE and Singapore. The second is the legal framework, through legislation for digitising property ownership and electronic registration, mandatory escrow accounts, and alternative judicial and non-judicial dispute-resolution mechanisms. The third is financial safeguards, through real estate investment funds and a real estate risk fund, banking oversight of purchasers’ funds, the development of pricing and sales indicators, and linking the release of funds from accounts to project completion, thereby supporting market stability and strengthening its ability to attract investment.

He reiterated the need to enhance transparency regarding data on the size of the real estate market to provide a more accurate picture of market activity and indicators. He also highlighted the importance of introducing a standard, mandatory contract for developers, or at least establishing a set of core and standard provisions that must be included across different contracts, thereby enhancing clarity in the relationships between market participants.
He further emphasized the digital transformation of all aspects of the real estate sector and the transition to electronic transactions, which requires expanding the use of the National Real Estate Identification Number at the current stage through a comprehensive real estate platform covering all transactions involving properties, whether sales or rentals. He stressed the need to accelerate efforts to implement and activate the system, given its importance as a tool for regulating the market and improving data accuracy.
Continuing the discussions, Eng. Tarek ElGamal, Chairman of Redcon Properties, thanked Invest-Gate for the invitation. He noted that in 2018, the President called for establishing an association for real estate developers, modelled on the Egyptian Federation for Construction and Building Contractors, which was established in 1992 to regulate the profession and comprises seven categories based on technical and financial criteria, including utilities, buildings, railways and infrastructure.
ElGamal noted that he joined the Real Estate Development Chamber at the Federation of Egyptian Industries in 2016, which was established in 2014. He expressed his aspiration for greater independence in the management of associations, particularly regarding government employees, whom he described as one of the factors affecting the success or challenges of associations’ performance. He also called for associations to operate as Self-Regulatory Organizations (SROs), giving them greater flexibility in regulatory matters.
He stressed the importance of the association having independent funding that would enable it to establish a strong and regularly updated database reflecting market requirements and developments in real time. He cited the Turkish market, where sales are worth approximately USD 150 billion despite Turkey having a population of around 80 million, noting that the size of the Egyptian market should not be an obstacle to establishing an association for real estate developers.
In the same context, ElGamal proposed establishing the association as an Egyptian joint-stock company, enabling it to generate revenues that could be invested in developing its information infrastructure and deploying artificial intelligence technologies, thereby supporting its ability to provide more efficient services to the sector.
He noted that developers already receive certain facilities, including considering 80% completion of a project as project completion, as well as some facilities related to interest rates. However, extending the project implementation period also increases costs for developers. He stressed the importance of issuing a clear letter allowing developers to extend their contracts with clients for the permitted period.
ElGamal concluded by stressing that what Egypt has witnessed recently represents the world’s largest cooperative project, highlighting the importance of raising public awareness of the project’s true value, particularly through social media platforms, given the need for further efforts to communicate this value to the public. Regarding real estate finance, he stressed the need to develop its mechanisms and reduce reliance on the banking sector by establishing real estate finance funds, introducing new financing mechanisms and revitalizing the capital market.
On the other hand, Dr. Bahaa Salem, Group President of Al Salem Holding, affirmed that the development activity witnessed by the real estate sector in recent years, along with the challenges and issues the sector has faced, is a natural outcome of the economic developments experienced by markets. He noted that focusing solely on the negative aspects overlooks the scale of the positive outcomes and the economic and social impacts generated by the real estate sector, as well as its role in supporting growth rates and driving numerous related economic activities.
He explained that the impact of the real estate sector is not limited to developers and buyers but extends to dozens of families that benefit directly and indirectly from real estate activity through the employment opportunities provided by the sector, as well as the related activities, services, and industries, reflecting the broad scope of its impact on the economy and society.
He added that the global economy has faced difficult economic conditions in recent years, affecting various sectors, which requires an active role from the government in supporting the real estate sector, maintaining continuous coordination with developers, and working to find solutions to existing challenges, thereby contributing to market stability and the continuation of development activity.
He concluded his remarks by stressing the importance of granting real estate developers an appropriate timeframe to implement projects, like the approach followed by the Contractors Federation.
Dr. Raymond Ahdy, CEO of Wadi Degla, affirmed that establishing the Egyptian Real Estate Developers Association represents a positive step from the developers’ perspective; however, some aspects of the Prime Minister’s decision need to be translated into clear provisions in the law.
He raised a number of questions regarding the nature of the association and whether it would operate as a Regulator or a Self-Regulatory Organization (SRO), as well as the extent of its independence and the scope of its membership, including whether it would be limited to residential developers or also include industrial and tourism developers.
He praised the government’s efforts to hold multiple meetings with developers, expressing his hope that the scope of these consultations would be expanded and that further details would be presented regarding the mechanisms for classifying developers within the association.
He affirmed that everyone seeks to regulate the market but noted that several variables need to be taken into consideration. He also made reservations about the fifth provision of the 2022 decision, which stipulates that the client’s money should be refunded if the developer is delayed for more than 24 months, due to concerns about its potential impact on property values and real estate investments.
He also stressed the importance of having representatives from banks within the association’s framework, which would contribute to coordinating aspects related to mortgage finance. He explained that the most prominent obstacles facing the real estate market are two main factors: high interest rates and exchange rate instability, both of which directly affect market activity and investment costs.
He highlighted the importance of transitioning to digital contracts and making them available through an independent platform, which would enhance transparency in real estate transactions and provide a clear reference that can be consulted when needed. He also stressed the need to address maintenance fees and establish clear mechanisms for managing them, affirming that the efficiency and quality of maintenance work are directly linked to preserving property value, while neglecting maintenance may negatively affect the value of units and real estate assets over the long term.
He concluded his remarks by expressing his support for the idea of implementing an escrow account, noting that many countries apply this system and that comprehensive models are available for reference. He explained that an escrow account ensures that project funds are directed toward their designated purposes, while stressing the need to establish mechanisms for dealing with potential changes, such as fluctuations in currency values or increases in the costs and factors of production, in a way that maintains a balance between the interests of clients and developers.
In the same context, Eng. Ahmed Ehab, CEO of Madaar Developments, affirmed that the Egyptian real estate market is currently undergoing an important stage of development that requires stronger cooperation among various sector stakeholders and a greater shift towards structured institutional work. He explained that establishing the “Egyptian Real Estate Developers Association” represents a supportive and complementary step to government efforts to regulate the sector and promote sustainable growth.
Ehab explained that the market’s development in the coming period could create greater opportunities for partnerships and acquisitions between large and small companies, supporting the integration of expertise and capabilities and creating new growth opportunities. He stressed the importance of having clear registration and regulatory frameworks that keep pace with these developments.
He highlighted the importance of having comprehensive and reliable data on the market, the scale of activity, and investment opportunities, considering these essential elements for understanding sector developments, identifying future trends, and supporting decision-making. He noted government efforts to develop the data ecosystem and build a comprehensive and organized database of companies, stressing that improving data availability and continuously updating it would provide a clearer picture of the market’s current state, developments, and future growth opportunities.
Ehab reviewed a number of international experiences, referring to the US real estate market, which is valued at approximately USD 80 trillion, and discussing the model of the National Association of Home Builders, which undertakes seven key roles to support and develop the industry. These include officially representing the sector before the government; contributing to the formulation of laws and regulations; standardizing ethical codes of conduct and developing standard templates for contracts, handover records and documents; education, training and professional development; dispute resolution and settlement; conducting research and providing market information and intelligence; and approving and developing a unified building code.
Ehab praised the government’s ongoing efforts to regulate the real estate sector and develop its operating framework, stressing that establishing the association represents an institutional framework that supports and complements these efforts by strengthening self-regulation and governance and providing an institutional platform for dialogue and coordination among different sector stakeholders. This would complement government directions and support the continued development of the business environment and market growth.

Ehab affirmed that discussions around establishing the association reflect the sector’s evolving vision of building a more organized, flexible, and sustainable operating model that promotes the more effective application of governance principles and supports the integration of roles between the public and private sectors. This would contribute to the continued development of the business environment, strengthen real estate activity and further develop the property management system.
In the same context, Mr. Mostafa Salah, CEO & Board Member of One of One, affirmed that the idea of establishing the Egyptian Real Estate Developers Association gains importance in light of the cases of developer defaults witnessed in the market and the need to establish a more organized framework for the real estate development profession.
He stressed the need for developers to move beyond their role as project financiers, given the numerous external factors that may affect project performance regardless of the accuracy of feasibility studies, particularly with extended implementation periods and the resulting changes in costs and economic conditions.
He stressed the importance of establishing clear standards for practicing the real estate development profession, which would contribute to raising professional standards and strengthening compliance with market regulations. He noted that disparities in unit prices require greater regulation and clarity. He also affirmed that the performance of non-serious developers negatively affects all developers and impacts the sector’s image, pointing to the need to pay attention to the form and regulation of contracts in a way that prevents the duplicate sale of units and helps identify the number of units offered and the size of the market more accurately.
He concluded his remarks by stressing the need for a mechanism that enables developers to access the credit assessment of consumers or buyers (I-Score), helping them assess the buyer’s ability to pay for the unit before completing the sale.
The sessions featured a valuable contribution from Dr. Mohamed Fathy, Partner and Head of the Real Estate Practice at ADSERO Law Firm, who noted that settlement committees could be a useful mechanism, but their effectiveness would ultimately depend on the scope and nature of their mandate. He explained that if their role is limited to serving as a preliminary step for resolving disputes, they would not have final authority to adjudicate cases, leaving both buyers and developers free to pursue litigation. In this regard, he suggested that specialized real estate courts or quasi-judicial committees could provide a more effective mechanism for resolving disputes, while settlement committees could still help address certain issues without limiting the parties’ right to seek judicial recourse.
Regarding the circulation of data under the new draft law, he stressed the importance of ensuring compliance with the Personal Data Protection Law when regulating the sharing of real estate market information. He noted that the disclosure of contracts, handover records, and even I-Score data could raise data protection concerns, underscoring the need for clear safeguards that enable the sector to benefit from market data while protecting the privacy and rights of individuals.
The roundtable discussions concluded with the participation of Mr. Simon Walley, Lead Financial Sector Specialist at the World Bank, who enriched the discussions and explained that his years of practical experience in China allowed him to follow the country’s response to the real estate crisis, particularly during the Evergrande crisis, which resulted in billions of dollars in losses and the default and bankruptcy of several companies. He noted that the Chinese government’s response was swift and focused primarily on regulating projects rather than focusing on developers.
He explained that this system is based on allocating an independent Escrow Account for each project, containing clients’ funds, which prevents the use of clients’ payments to finance or purchase land for future projects. This allows project completion rates to be monitored and compliance with handover schedules to be ensured. In case of delays, the necessary measures can be taken, including imposing fines or excluding the developer and replacing it with another developer.
Regarding financing, he stressed that developers should not bear the full cost of financing the project, explaining that developers globally rely on recycling and rapidly reinvesting their funds. This requires an integrated financing system that helps provide the necessary financing for projects and enables customers to purchase units.
The roundtable was held in collaboration with AKD Advisory, with Al Salem Holding as the Platinum Sponsor, Wadi Degla Developments as the Gold Sponsor, IL CAZAR as the Delegates’ Bags Sponsor, One of One Developments as the Lanyard Sponsor, and Madaar Developments and Vantage Developments as Silver Sponsors.
Media Partners included: Aleqaria, Al-Borsa Newspaper, Daily News Egypt, Al-Gedaan Real Estate, Aqarmap, Osoul Misr Magazine, Bloom Gate, Property Plus, Aqargate, and Iskan Misr.