Engineer Hisham Shakry, the founder and managing director of Roya Holding for Real Estate Investments and the chairman of the Real Estate Export Council, said that the main problem facing real estate development companies currently is the high cost of financing. Therefore, we need to return to the pre-2008 era, where financing for under-construction real estate projects was allowed until a decision from the Central Bank of Egypt halted the application.
Moreover, he added that allowing financing for under-construction real estate projects would increase completion rates and, in order, be in favor of the client, as they would pay installments after the actual implementation of the projects.
He continued by pointing out an important note, which is that 60% of those seeking financing do not benefit from real estate financing initiatives due to the difficulty of proving their income. This results in missing out on significant opportunities in the market. It is necessary to emphasize the importance of facilitating income verification procedures and making the housing unit a guarantee for the loan. Additionally, allowing the use of checks held by real estate development companies for obtaining necessary financing from banks should also be permitted.
He then added that finding solutions to the banking financing issues for real estate development companies will alleviate the severity of the crisis they face and increase the completion rates of projects. It will also contribute to reducing construction costs due to the rapid rise in expenses.
In conclusion, Engineer Hisham Shakry underscored the urgency of addressing the high cost of financing in the real estate sector. By adopting measures to facilitate the funding, streamline income verification procedures, and encourage affordable housing initiatives, the industry can overcome its current challenges and emerge stronger. This, in turn, would have a positive impact on the overall economy, job creation, and the well-being of individuals and communities.
