Because of the dominance of the military gang over projects, the real estate market is facing unprecedented crises that threaten to collapse

The real estate market is facing severe crises, starting with stagnation due to high prices, despite the increase in supply, the decline in demand, and the stagnation in the contracting sector, due to the construction conditions and the licensing system imposed by the coup regime, forcing companies and individuals to stop building, leaving the atmosphere clear for the military gang that It builds large projects under the name of social housing, an apartment for every citizen, and housing for Egyptians, but it imposes exaggerated prices, forcing it to introduce the real estate financing system. Despite this, this system is not popular, which threatens the collapse of the real estate market, the displacement of workers and the cutting off of their livelihood.

In addition to these challenges, the Corona virus pandemic and its negative repercussions have added more crises to the real estate market, including the rise in the prices of building materials requirements, the suspension of many projects, and the demands of some contracting companies to review the unit contracts that were previously signed under the pretext of the high prices of building materials, especially in the wake of the liberalization of the exchange rate. The value of the pound fell against the dollar in an unprecedented way.

legislative stability

For his part, Ashraf Ezz El-Din, General Manager of a real estate company, said that “the real estate market suffers from many challenges, foremost of which is the legislative instability.”

In a press statement, Ezz El-Din indicated that the market needs the stability of laws and legislation regulating the work of real estate companies in order to stabilize the market.

He added, “We are working to inject new investments in the coming period, and we do not want to be surprised by any future decisions by the coup government that affect those plans.”

With regard to the extent of the impact of consumers’ increased dependence on e-commerce on sales of commercial real estate and the movement of malls, Ezz El-Din said that “electronic shopping in Egypt, despite its recovery during the Corona period, has so far not affected the movement of building malls, explaining that the number of visitors to the centers Private commercial activities in Egypt, for example, amounted to 109 thousand visitors, in what is known as last Black Friday.

financing alternatives

“The current financing model needs to be developed, in order to revitalize the real estate market,” said Nagy Fahmy, head of the Egyptian Real Estate Finance Federation.

Fahmy added in press statements that there are a number of financing alternatives that contribute to supporting the real estate financing system, provide long-term financing opportunities, promote market revitalization and support the growth of the real estate sector, but the coup government impedes the implementation of these alternatives, whether by issuing laws and legislation, or by imposing more fees and taxes What leads to a rise in the prices of housing units and the control of a state of stagnation on the market, and he wondered, “We do not know how long these conditions will continue?” Warning that the continuation of these conditions will lead to disasters in the real estate market.

slums

The economic expert, Karim Al-Omda, said, “The (coup) government raises big issues, and claims that it is making achievements in it, even though there has been no change on the ground, referring to the file of eliminating slums, for example.”

In press statements, the mayor stressed that this file is very difficult, because it has accumulated over decades and long years, pointing out that slums appeared in the sixties of the last century, as Cairo had more than 1,000 slum areas.

He added, that the slums are divided into unsafe and dangerous random places, whose residents are exposed to danger and damage at any time, such as the Mokattam rock that fell in the past, and areas in the face of torrential rains and so on, which are areas that require rapid and urgent action to resettle their residents in other places. more humane.

The mayor pointed out that Article 78 of the Egyptian Constitution indicates that the state is obligated to provide a safe and healthy housing for citizens, and this requires comprehensive planning for villages and cities, as the problem of health and education is caused by overcrowding in some areas.

He explained that it is normal for there to be pressure on health and education facilities in unplanned places, stressing that the phenomenon of overcrowding exists in governorates with large populations, and he stressed the need to start eliminating random thought.

Services collapse

Regarding what the military state announces that it supports the private sector to carry out most projects, whether in the real estate sector or otherwise, Dr. Hossam El-Shazly, professor of management and strategic planning, said, “It is clear that the (coup) regime is preparing for the next stage, which will be the stage of the collapse of basic services for the citizen such as health and education. And transport, stressing that this collapse became evident in the deteriorating state of government hospitals and schools, the endless transport accidents, the high prices without a ceiling and the continued weakness of the currency level and the loan strategy.

Al-Shazly added, in press statements, that the issuance of an amended privatization law from the politicized Sisi Parliament aims to get rid of these combined disasters and throw them into the private sector, warning that this strategy represents a new bloody stage in the poisoned economy system, which is based on sacrificing middle-income people and the general public. People in return for achieving economic goals drawn.

He also warned that the participation of the private sector in basic services will lead to an astronomical increase in their prices, because the Egyptian economy equation does not allow the provision of any service of an acceptable level without importing a lot of equipment, raw materials and others, and in light of the dead Egyptian pound against major currencies. The prices of these services will witness huge jumps.

Al-Shazly revealed that the huge loans requested by the coup regime from abroad and from the UAE currently, will facilitate the entry of many countries as public or hidden partners in these services, which will eventually own the lives of Egyptians for non-Egyptians.


Source: بوابة الحرية والعدالة by fj-p.com.

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