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In recent months, warnings have been mounting about a possible real estate bubble forming in the Egyptian market. Real estate expert and founder of Misr Real Estate Platform, Ahmed El-Batrawy, stressed that addressing this risk must begin with a complete overhaul of the real estate financing system.
He emphasized that the time has come to transfer the responsibility for financing from developers to banks, as banks are the entities capable of ensuring transparency, financial discipline, and the protection of both clients’ and investors’ rights.
ElBatrawy explained that allowing developers to continue offering financing systems without financial oversight or official licenses represents a regulatory loophole that threatens market stability. He noted that in global markets, such practices fall exclusively under the jurisdiction of licensed financial institutions, not real estate developers.
He added that the lack of transparency in certain financing contracts has created confusion among clients, as long-term payment schemes are sometimes offered without formal documentation — exposing all parties to legal and financial risks. He therefore called on the Financial Regulatory Authority to intervene urgently and require developers to obtain prior licenses for any financing product before introducing it to the market.
Comprehensive Legislative Reform Led by a National Regulatory Body
ELBatrawy noted that genuine reform of the real estate sector can only be achieved through restructuring the legislative and regulatory framework governing it — ensuring that the state, not commercial entities, takes the lead in managing the sector.
He explained that the root of the crisis does not lie only in supply, demand, or prices, but in the management system itself and the absence of a unified regulatory authority with real decision-making power.
He stated:
“As long as market regulation remains confined to developers and marketers, reform will never happen — because those who benefit from the imbalance cannot be the ones tasked with fixing it.”
ElBatrawy commended the state’s recent steps to regulate the market through new laws designed to protect consumers and prevent unfair practices. He called for accelerating these efforts by establishing the Egyptian Supreme Real Estate Authority — an independent body with full supervisory powers over the sector.
This authority, he proposed, would set unified rules for financing, delivery, and advertising, ensuring a fair balance between the interests of citizens, developers, and investors alike.
A Supreme Real Estate Authority: A National Necessity
ElBatrawy explained that such an authority should include representatives from the public and private sectors, civil society, and the Financial Regulatory Authority to create an integrated oversight system covering all stages of real estate development — from planning to final delivery.
He emphasized that the goal of this authority should not be limited to control and supervision, but to achieve true governance within the market — by standardizing contracts, setting clear advertising and financing regulations, and prohibiting any cash transactions outside the banking system through the mandatory use of escrow accounts under government supervision.
He stressed:
“Egypt’s real estate is a major national asset, and organizing it is the only guarantee to protect both citizens and investors.”
ELBatrawy affirmed that the present moment is the ideal opportunity to launch this national authority, which would restore confidence to the market and open new horizons for growth and investment.
Technology and Governance: The Tools of Transparency and Market Stability
ElBatrawy pointed out that the future of Egypt’s real estate market depends on the state’s ability to enforce digital transformation and full governance. He noted that technology has become a key tool to ensure transparency and track market movements in real time.
He explained that real estate today is no longer limited to buying and selling units — it has become an integrated industry managed through interconnected financial, marketing, and legal systems. Therefore, a unified digital system is needed to register real estate contracts and financing electronically, providing unprecedented market visibility and enabling the state to monitor real supply and demand indicators.
He added that digital transformation would allow every sale and financing operation to be instantly recorded in a national central database, protecting clients’ rights and preventing manipulation.
“Without digital transformation,” he warned, “the market will remain hostage to chaos, and questions about a real estate bubble will continue to linger unanswered.”
ElBatrawy concluded by stressing that governance of the real estate market is no longer a choice, but a national necessity:
“When the state takes the lead, banks handle financing, and the market operates under transparent digital oversight — we will finally have a real estate market that is safe, stable, and attractive to both domestic and
foreign investors.
