In recent times, warnings have intensified regarding the potential emergence of a real estate bubble in the Egyptian market. This situation has prompted real estate expert and founder of the Official Egyptian Real Estate Platform, Ahmed El Batrawy, to emphasize the urgent need for a fundamental reform of the real estate financing system as a key step toward addressing this looming risk.
El Batrawy highlighted the importance of transferring the responsibility of financing from developers to banks, as banks are the most capable institutions of ensuring transparency, financial discipline, and the protection of both clients’ and investors’ rights.
He explained that the continued involvement of developers in offering financing systems without financial oversight or official licenses represents a regulatory gap that threatens the stability of the market.
He further noted that in global markets, such financing practices fall strictly within the jurisdiction of banks and licensed financial institutions, and not real estate development companies.
He also added that the lack of transparency in certain financing contracts has led to significant confusion among clients, as many developers offer long-term payment plans without any official documentation.
El Batrawy clarified that this approach exposes all parties to legal and financial risks, urging the Financial Regulatory Authority (FRA) to take firm action by requiring developers to obtain prior licenses before introducing any financing products to the real estate market.
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