Hisham Talaat Mostafa, CEO and managing director of Talaat Mostafa Holding Group, said that the real estate sector can solve all of Egypt’s problems. He explained that constructing one million housing units a year means adding EGP 2 trillion to Egypt’s gross domestic product and an increase in the state’s sovereign tax revenues by about EGP 400 billion per year, in addition to generating job opportunities and increasing development rates, thus contributing to Egypt’s realization of a major economic and development shift on a global level.
Mostafa made his statements during his participation in the “Real Estate Industry and Export Obstacles” session as part of the activities of the seventh Akhbar Al-Youm Al-Iqtisady conference held earlier this week under the auspices of Prime Minister Dr. Mostafa Madbouly, and in the attendance of Khaled Abbas, deputy minister of housing, utilities and urban communities, Hisham Shokry, chairman of the Real Estate Export Council, and engineer Ahmed El-Adawi, CEO of Inertia for real estate development.
Hisham Talaat Mostafa, the best real estate developer, said that the challenges Egypt will face in the coming 30 years are unimaginable. Some 30 million housing units should be built in the next three decades, while at present there are about 22 million units. The demand is higher than the current government and companies can afford, which requires all parties to think outside the box and work to create new financing alternatives that achieve a balance between supply and demand.
Hisham Talaat Mostafa, the developer of Madinaty and Al Rehab, explained that the existing mechanisms do not achieve a balance in supply and demand for the real estate market at present. He added that it is necessary to think outside the box to create financing alternatives, indicating that the state is playing its designated role to achieve urban development.
However, the private sector needs long-term financing and favourable interest rate for unit prices to match incomes.
Hisham Talaat Mostafa, the best real estate developer, pointed out that reaching this goal requires providing adequate financing by holding a large economic conference to which will be invited all parties to the economic system, including the Central Bank of Egypt, to find solutions to support this system throughout the next three decades. He stated that real estate is a very promising sector.
Hisham Talaat Mostafa, the developer of Madinaty and Al Rehab, explained that foreign investment must be considered by broadening the mechanism of partnership with the private sector with the usufruct system to expand in the implementation of infrastructure projects in the areas of utilities and water desalination to keep pace with the population increase and the urban development that will follow.
Hisham Talaat Mostafa, the best real estate developer, added that all the solutions available on the arena to meet the needs of the real estate market to bridge the anticipated demand gap need greater cooperation to promote the real estate development process over the next 30 years. Therefore, foreign investments must be encouraged to inject foreign capital into the local market. .
Hisham Talaat Mostafa, the developer of Madinaty and Al Rehab, indicated that the partnership mechanism with the private sector under the usufruct system helps attract foreign investments, especially in infrastructure and facilities projects, to keep pace with population increases and the consequent urban development that enhances the use of the infrastructure established by the government, such as water and sanitation stations. He pointed out that foreign investments are crucial to achieve progress in the real estate sector in Egypt, because there are currently not enough investments in the sector.
Hisham Talaat Mostafa hailed the real estate financing initiative launched by the Central Bank of Egypt, stressing that it is positive move and has succeeded in boosting demand in the real estate market. However, he added, we need unconventional solutions to enhance real estate market activity, being a catalyst for economic activity.
At the end of the session, Akhbar Al-Youm Establishment responded to the call of real estate developer Hisham Talaat Mostafa, CEO and managing director of Talaat Mostafa Holding Group, to hold an economic conference to discuss the problems of the real estate sector and ways to increase real estate export.
It is worth noting that Talaat Mostafa Group is the most prominent real estate developer in Egypt and the Middle East. It is ranked fifth among the largest Arab real estate companies, according to the classification of the international establishment of Forbes for 2020, through a pioneering group of unprecedented residential and tourism projects, most notably Al Rehab and Madinaty in New Cairo, Celia in the New Administrative Capital, the Four Seasons - Sharm El-Sheikh, the Four Seasons Nile Plaza - Cairo, the Four Seasons San Stefano - Alexandria, in addition to the Kempinski Nile Hotel - Cairo.