Lease ownership and its role in ending the real estate crisis

Editor02 WasetMasr نوفمبر 4, 2019

Lease ownership and its role in ending the real estate crisis

Written by Walid Abdel Moneim

The real estate market is one of the important trains of the economy for several different factors, for example, the large direct and indirect labor volume and the field of many investments in specialties related to building materials such as cement, bricks, iron and paint, plumbing tools, tiles, ceramics, wood, Alumetal, glass and all decorative materials other than raw materials. Such as sand, tile and transportation, which shows the size of the labor used in the fields related to this market

Inflation is one of the most important enemies of this area, especially in recent years, the real estate market has witnessed a large recession in Egypt and a number of other countries until the major companies working in the field of real estate investment to provide facilities up to the sale and units without a provider and installment up to ten years

The problem and the solution from the perspective of the wasetmasr

Identifying the problems faced by real estate investment is the only way to determine the solution, Egypt represents a large market for real estate because of its large population of more than 100 million people

Although the report of the Central Agency for Public Mobilization and Statistics indicates that the number of marriages in Egypt is estimated at 950 thousand cases in 2015, which means the need for one million new housing units annually, unlike other market requirements

The demand figures for the real estate market in Egypt indicate that the average demand for apartments is more than 55% of the total types of other properties, while the supply represents less than 45% of this requirement while the supply of other properties from villas represents Duplexes, shops and administrative units are more than required by up to 3.5% of the required

While the demand for housing units, which cost up to one million pounds, represents about 35%, the actual investment of real estate in this area represents only about 20%, while the situation is reflected in the higher-priced rental units.

The solution offered by the wasetmasr
The mediator of Egypt believes that meeting the wishes of the most demanded group for real estate for the purpose of housing and investment represented by the middle class to varying degrees and that the State encourages investors to address this category through granting some facilities and support the Central Bank of Egypt to investors in this area by imposing less interest and longer periods through which The investor offering units to acquire for periods up to 20 years and more paid as monthly installments as a rental system ends up owning the housing unit and that the ownership of housing units instead of renting them will greatly increase the demand for them and increase confidence in the strength of the Egyptian economy and investment opportunities in e The field and requirements directly and indirectly