The government has announced the establishment of a bourse to promote the sale of real estate, taking advantage of the large urban boom in Egypt, real estate development expert and member of the Egyptian Businessmen Association, Tariq Bahaa, told RT.
He explained that Egypt has made many efforts to enhance its real estate export, due to the urban development it has witnessed lately.
These include the establishment of a real estate stock exchange, serving as a platform to enables investors and real estate companies to buy and sell shares in real estate assets and invest in them, Bahaa said, which will complement the traditional real estate market.
This stock exchange provides opportunities for real-time trading and the most liquid investment in the real estate sector, he explained.
The assets associated with its securities will be real estate. The form of these real estate securities is diverse and not limited to real estate ownership, but may extend to any contract or right related to real estate.
Bahaa said that establishing a real estate stock exchange bourse in the Egyptian market will achieve many benefits, the most important of which is achieving liquidity.
The liquidity of assets in the case of traditional ownership decreases while its nominal value increases, he noted.
Is there a difference in these stock exchange types?
Bahaa explained that there is no fundamental difference in theory between the real estate stock exchange and the financial stock exchange, as both involve exchanging certain rights through papers and documents.
The real estate stock exchange can therefore be said to be a special type of financial stock exchange.
However, establishing a real estate stock exchange requires the fulfillment of several conditions, including the need to digitize real estate wealth by converting real estate ownership documents inside Egypt from paper to digital, as well as digitizing the real estate transaction process and transfer of ownership.
This allows for the transfer of real estate ownership at any time outside official working hours, he said, adding that it also allows for the transfer of funds through banks in electronic real estate transactions.
Bahaa stressed the importance in establishing a special real estate exchange in Egypt which sees real estate traded and also features real estate prices in all regions and percentage of sales reflected on a daily basis, as it will help develop the country’s real estate market.
“Certainly, the establishment of a real estate stock exchange will have positive effects on the real estate market, and will work to regulate it. Prices will be accessible to everyone,” he said.