Minister of Housing, Utilities, and Urban Communities Sherif El-Sherbiny stated that the ministry is continuously working to develop the real estate sector to drive economic growth and provide suitable housing opportunities for citizens. This effort includes future strategies to enhance Egypt's real estate market by removing obstacles to the establishment and operation of real estate funds, attracting foreign investments, and forming joint real estate portfolios with countries such as Saudi Arabia and the UAE. El-Sherbiny emphasized that real estate funds are vital financial instruments that offer diverse investment opportunities and generate strong returns. Additionally, these funds provide liquidity to investors, enabling them to capitalize on various investment prospects. His remarks were delivered during a speech on the ministry's vision for the future of real estate development in Egypt at a business Suhoor event hosted by the Egyptian Businessmen's Association. Real Estate as a Key Driver of Economic Growth The minister highlighted that the real estate sector is one of the main drivers of the national economy, contributing directly to job creation, economic growth, and sustainable development. He noted that the sector has witnessed an unprecedented boom, supported by Egypt's Vision 2030, which aims to achieve comprehensive and sustainable urban development. "We are working diligently to develop a legislative and regulatory framework that supports investment, encourages innovation, and ensures a balance between supply and demand, ultimately meeting the aspirations of both citizens and investors," El-Sherbiny stated. He further stressed that real estate development is not just about constructing buildings but about investing in the future of communities, improving quality of life, and creating modern cities that meet the aspirations of future generations. The Egyptian government, he noted, prioritizes supporting the sector by implementing policies and regulations that enhance the business environment, foster innovation, and encourage the adoption of the latest technologies in construction and urban planning. Strong Demand for Egyptian Real Estate El-Sherbiny pointed out that Egypt's real estate sector witnessed significant growth in 2024, with demand for real estate products steadily increasing. The sector's competitive advantage has strengthened purchasing power, particularly among those dealing in foreign currencies, including Egyptians living abroad and Gulf citizens, who have accounted for nearly one-third of real estate sales in recent periods. This growing demand reflects confidence in the Egyptian real estate market as an attractive investment destination, offering a wide range of residential and commercial units at competitive prices compared to other regional markets. Government policies supporting the real estate sector, along with major development projects such as the New Administrative Capital and social housing initiatives, have further enhanced the market's appeal. El-Sherbiny added that the real estate market in Egypt is witnessing significant diversity in demand across various property types, with housing being the primary driver. The estimated annual demand for residential units is around 2 million, highlighting the need to accommodate population growth and urban expansion. "In addition to residential demand, there is also a notable increase in demand for commercial and administrative units, driven by economic growth and rising investments in trade and services. Furthermore, the hospitality sector is experiencing growing demand, especially in key tourist areas like Alamein and the Northwest Coast," he noted. "This diversity in demand underscores the dynamism of the Egyptian real estate market and showcases the wide range of investment opportunities available across residential, commercial, and tourism-related developments." Government-Led Infrastructure Projects Boosting Investment Major infrastructure projects undertaken by the Egyptian government, such as new road networks and smart cities, are further driving demand for real estate units. As Egypt's economy continues to grow, investor confidence in the real estate market is rising, leading to increased demand for commercial and administrative units, particularly in strategically valuable areas. El-Sherbiny acknowledged both the opportunities and challenges facing the sector, stating, "The government is presented with promising opportunities and challenges that require collective cooperation and joint efforts to develop an integrated and sustainable real estate ecosystem. This must be built on strategic planning and a visionary approach. This gathering serves as an ideal platform for dialogue and exchange of ideas and expertise among key stakeholders, contributing to the advancement of the real estate sector toward new horizons." He reaffirmed that the Ministry firmly believes real estate development is not merely about constructing residential units but about a comprehensive vision to create integrated urban environments that provide a high quality of life for citizens while driving economic and social development. El-Sherbiny concluded by expressing the Housing Ministry's full commitment to collaborating with investors, real estate developers, and financial institutions to ensure a real estate boom that aligns with Egypt's national aspirations and achieves sustainable development for future generations.
