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Banks instead of real estate… Sisi’s advice to the Egyptians raises controversy

Cairo – Egyptian President Abdel-Fattah El-Sisi’s call for the citizens of his country to put their money in banks instead of investing in the real estate sector has sparked controversy on social media, between supporters of this call, as it is best suited to the interests of individuals and the country, and others who see it as coming within the framework of efforts to limit the real estate sector to state institutions. .

On the sidelines of a celebration he held in the new city of Aswan (south), Sisi called on Egyptians to “place their savings in banks instead of investing them in real estate,” claiming to allow the Ministry of Housing and Utilities, represented by the Urban Communities Authority, to build more housing units in the new cities.

From what Al-Sisi mentioned, “I tell people: this investment is not appropriate. Instead of putting money in real estate, put it in the banks, and if you want to build a property worth two million pounds, for example (the dollar is less than 16 pounds), I advise you to put this money in the bank, Because investing in real estate is not a big opportunity… this money will have been locked up in the real estate.”

He continued, “The state has intervened in the field of housing, not for the purpose of competition, or standing against anyone, but to stop ugliness and random construction,” noting that “stopping construction within the state will be in stages, and we will not allow anyone – except for the state – to build in housing projects for a period of 10 years from Now, until we put in place disciplined mechanisms regarding licenses and so on.”

In this context, the President announced the state’s construction of 100,000 furnished housing units for rent, with the aim of providing housing for newly married couples that “reduces them from carrying the usual burdens” in housing preparation, so that they only require their “bags of clothes” in return for paying the rent.

Al-Sisi’s statements sparked controversy, as a sector of Egyptians expressed their opposition to him, as it clashed with what their information and customs have settled on investment, and that he aims to limit investment in the real estate sector to government and army institutions.

In this context, tweeters went to the fact that advisers justified the president’s reluctance to buy apartments and shops in the administrative capital, for their tendency to build and buy real estate outside it, which prompted him to make these statements.

Another sarcastically asked whether the banks lacked financial resources, pointing out that the constant and known as a correct investment is in the real estate, land, and gold sector. And that the bank interest returns in the long run cannot be compared to investing in real estate that doubles in price.

On the other hand, tweeters celebrated what Sisi announced, as they saw that it solves problems that the real estate sector has been suffering from for a long time, and achieves the interests of individuals through a safe and guaranteed profit investment through banks.

In the context of their interaction in support of this proposition, tweeters pointed to the noticeable stagnation in the real estate sector, and the repeated talk of economists about the need to address the crisis of oversupply in the face of lack of demand, claiming that the president’s policies in the real estate sector contributed to addressing the housing crisis.

A number of tweeters celebrated what Sisi announced about the state’s endeavor to build 100,000 furnished housing units for rent, stressing that this would ease the increasing burdens on those who are about to marry, and would contribute to solving their crises.

Last August, the Minister of Housing, Assem Al-Jazzar, said that there is an annual increase estimated at about 2 to 2.5 million people annually who need from 500,000 to 600,000 housing units, stressing the continued increase in demand for housing units.

The contracting sector contributes about 17% of the gross domestic product, according to the data of the Egyptian Federation of Construction and Building Contractors, which includes under its umbrella about 30,000 companies, of which about 15% to 20% are first-class companies that implement mega projects.

Source : Egyptian media + The island + Social Media



Reference-www.aljazeera.net

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