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The majority of Egyptians view real estate as the most reliable way to protect their money from loss, considering it the safest investment option. Many see it as the best method to preserve the value of their savings amidst fluctuating prices, especially for those not skilled in trading or investing.
However, with the continuous rise in land and property prices, real estate investment has become nearly impossible for a large segment of Egyptians, particularly in private sector projects. The concept of the sharing economy has emerged as a potential solution to this challenge.
Experts suggest that shared participation could be the key to resolving financial barriers. For example, if someone has only “100 pounds,” that amount alone wouldn’t typically grant access to the real estate market. This is where the sharing economy offers a golden opportunity for individuals with small to medium-sized wealth. But to open this door, there must be a mechanism that ensures transparency and equal opportunity. The solution lies in a “real estate stock exchange,” which has already proven successful in some Arab countries.
What is a Real Estate Market?
A real estate market is a platform for trading property, offering services like buying and selling, as well as mortgages, deed updates, and property mergers or subdivisions. This platform operates 24/7, streamlining real estate transactions.
In simple terms, it allows individuals with limited or moderate financial resources to purchase a portion of a residential or commercial unit. Whether they buy a square meter or more, participants can invest based on their available funds. These transactions are governed by clear conditions and guarantees, supervised by the Capital Market Authority and the Egyptian Stock Market.
Can You Participate in the Real Estate Market with Limited Funds?
Participation in the real estate market isn’t limited to those with substantial wealth. You don’t need a large sum of money to invest. Any amount can be used to purchase a specific number of meters based on the current price per square meter at the time of the share offering. This approach is especially helpful for those looking to preserve the value of their savings. For example, if the price per square meter is 5,000 or 10,000 pounds, a citizen could buy just one meter and join the real estate market.
Safeguarding the Rights of Real Estate Market Participants
Participants in the real estate market are assured strong protections for their financial interests. Regulatory bodies like the Financial Regulatory Authority and the Egyptian Stock Exchange, both government entities, oversee the transactions, ensuring security and preventing reliance on private individuals.
The Financial Regulatory Authority sets operational guidelines for management companies and trading parties, in collaboration with the Ministry of Justice. It defines insurance requirements for traded real estate assets, allows real estate shares to be used as collateral in financial transactions, and approves trading procedures, including rules for trading, settlement, membership, and disclosure.
Sectors Expected to Be Included in the real estate market
The real estate market is expected to cover all forms of property investment, including residential, commercial, and administrative sectors. Initially, the administrative and commercial sectors will be introduced as part of a pilot phase, with expansion into non-residential real estate expected later, as these are the most in-demand sectors.
Benefits of the real estate market
The real estate market provides a range of services designed to speed up transactions and deliver high-quality, efficient data. It promotes transparency in supply and demand, ensures fairness and equal opportunities, and helps break monopolies.
Additionally, the exchange offers both individuals and legal entities access to real estate services, complementing the Ministry of Justice’s role in managing and registering property. It simplifies the transfer of property ownership, manages real estate mortgages, and displays real estate transactions openly and transparently.
