Egyptian experience in issuing lands ‘failed’ to attract investors- SODIC

The experience of Egyptian government in issuing land plots had not succeeded in attracting investors and finishing goals of urban development that the country targets.

Managing Director of SODIC-Egypt Magued Sherif stated that the government should reconsider the system of issuing lands for property developers.

He made these remarks during his speech at Cityscape Egypt conference that kicked off Tuesday April 5 at Royal Maxim Palace Kempinski under the rubric of ‘ The Future of Development: Urbanisation, Regeneration and Partnership’.

Sherif added that the government also should play supervisory and organisational role in real estate sector without controlling mechanisms of lands issuance.

The development plans that Egypt targets within the upcoming period requires determining government’s role in issuing land plots and organising sector’s activity, the official clarified.

The number of current available land issuance , i.e. 70 land plots in a massive number of cities, has witnessed a small improvement from developers. Meanwhile, investors have not applied for the issuances of lands located in large cities, Sherif clarified. Hence, the investors refuse government’s policy of issuing land plots and the unreasonable rise in prices.

Sheirf noted that activating discussions between all parties involved in real estate development system is important as well as reconsidering speacialisations of each party.

the official emphasised on the importance of agreeing upon rules and mechanisms that guarantee organising market and activating sustainable real estate development within the coming years.

He added that finding active communication channels between the government and real estate developers is important to respond their suggestions besides establishing a bunch or rules upon which two parties are agreed to improve mechanisms of investing in real estate sector and solve its problems in the future.

Cityscape Egypt is set to discuss the main feature of the Egyptian government’s future scheme and the updates of mega national projects and real estate regulations.