The Association of Real Estate Developers (arD) convened this week to address the mounting challenges facing Egypt's property market, underscoring the need for urgent regulatory reforms and greater flexibility to sustain growth. Developers stressed the importance of focusing on completing existing projects rather than launching new ones that could exceed their financial capacity. They highlighted that bottlenecks in land allocation and pricing remain among the most pressing issues for market stability. One of the key concerns raised was the complexity of Egypt's current licensing framework. Developers noted that securing approvals for administrative and commercial projects requires clearance from more than 14 different entities — a process they described as cumbersome and discouraging for investors. To address this, developers called for the unification of regulatory bodies responsible for issuing construction permits, proposing the establishment of a "one-stop shop" to streamline approvals. Such a step, they argued, would speed up construction timelines, reduce investment risks, and enhance the sector's overall competitiveness. Participants also pointed to the need for greater flexibility in granting permits, stressing that residential, touristic, and commercial projects each require tailored government facilitation. Revisiting land pricing mechanisms was another priority raised during the discussions. Developers cautioned that abrupt changes in land valuation disrupt feasibility studies and financial planning, creating instability across the sector. The recent decision to revoke licenses in certain cases was also flagged as a source of added uncertainty. The association further criticised the blanket policy of pricing land exclusively in US dollars. While acknowledging that foreign currency financing may sometimes be necessary, they warned that tying all land values to the dollar reduces competitiveness and discourages local investors. Instead, they called for more flexible mechanisms that better reflect domestic economic realities. At the same time, developers urged the government to authorise foreign currency sales of property units, allowing transactions in dollars or euros rather than restricting them to the Egyptian pound. They cited Saudi Arabia as a model, where foreign investors are permitted to purchase property without being obliged to pay in local currency. On financing, developers pushed back against the perception that high interest rates directly lead to lower property prices. Rising construction and development costs, they argued, continue to offset any potential downward pressure on prices. The association concluded that resolving these issues — from licensing and land pricing to flexible currency options — is vital to reinforcing the resilience of Egypt's real estate market and sustaining investor confidence.
