Vantage Developments was honored to participate in the Fifth Edition of Akhbar El Yom Real Estate Conference, which brought together a distinguished group of top real estate developers, prominent business leaders, and senior officials, including:

• Minister of Housing, Eng. Sherif El Sherbiny

• Minister of Youth and Sports, Dr. Ashraf Sobhy

The event was held under the patronage of Mr. Islam Afify, Chairman of Akhbar El Yom Foundation.

Dr. Mohamed Abdel Gawad represented Vantage Developments at the conference, which focused on discussing real estate financing mechanisms, as well as the importance of innovation and sustainability in supporting the sector, boosting exports, and attracting foreign investments.
During his remarks in the session dedicated to financing tools, Dr. Abdel Gawad emphasized:

“There can be no real estate development without sustainable, flexible, and inclusive financing that serves both developers and buyers alike.”

He called for the reactivation of the mortgage financing system for under-construction units, which had been suspended following the global financial crisis in 2008, noting that the current market conditions are more mature and ready for its implementation.

“Suspending this type of financing was a logical step at the time due to the market situation, but today, we are dealing with a more regulated market and developers who are more committed. It is now possible to reinstate this financing system with smart safeguards such as escrow accounts, phased execution plans, and technical oversight,” he explained.

He also referred to FRA Resolution No. 57/1 of 2007, which laid out the regulatory foundations for mortgage finance regarding property valuation, debt-to-income ratios, and transparency requirements. He added:

“The legal framework is already in place. What we need now is actual enforcement and the development of practical application mechanisms.”

In this context, Dr. Abdel Gawad also called for activating a developer classification system to enable banks to distinguish between companies based on financial solvency and execution track records:

“Restoring trust between the banking sector and developers starts with a clear and transparent classification system.”

Regarding financing costs, he pointed out that Egypt offers competitive interest rates through Central Bank initiatives, ranging from 3% to 8%, with repayment terms of up to 30 years. However, access to such financing remains limited, as real estate finance represents only 3-4% of total banking credit, despite the sector contributing approximately 20% to the GDP.

“There is a clear gap between the importance of the real estate sector and the level of financing it receives. We need alternative tools such as sukuk, real estate investment funds (REITs), and participatory financing, along with incentivizing banks to expand into this financing area.”

Dr. Abdel Gawad also highlighted the challenges faced by a large segment of citizens, especially those in the informal economy or self-employed individuals, who struggle to provide traditional income proof:

“Thousands of Egyptians are excluded from real estate financing due to lack of traditional income documentation. We need flexible credit evaluation mechanisms that are based on spending patterns and banking behavior.”

He considered tools like REITs and fractional ownership as potential game-changers for real estate funding—provided they are practically activated and linked to real investment projects:

“The issuance of clear regulations by the Financial Regulatory Authority for the establishment of REITs is a positive step. However, we need to expedite their implementation in the market and tie them to real, income-generating projects.”

He also pointed out that shared ownership and fractional sales are smart solutions for attracting a new segment of investors, particularly in the tourism and administrative sectors.
In closing, Dr. Abdel Gawad called for the unification of government fees related to real estate development procedures, stating that the multiplicity of authorities and the variation in fees burden developers and buyers.
He concluded his remarks by saying:

“What we are discussing today is not just policy—it is a market necessity. The demand exists, the capital is available, and what we need is to connect the dots through regulation, innovation, and transparency.”

In conclusion, Vantage Developments extends its sincere appreciation to Akhbar El Yom Foundation for the outstanding organization of the conference and the remarkable efforts that contributed to its success and professionalism.
We hope that the recommendations that emerged from the event will be implemented on the ground to help advance the market, fulfill the aspirations of industry stakeholders, and attract more investors and clients.