The 9th edition of Think Commercial Conference concluded with a session titled: “Fractional Real Estate Investment: Between Regulation and Competitive Market Opportunities.” The session was attended by senior officials, developers, and industry experts, in addition to members and chairmen of Real Estate Export Council and Real Estate Development Chamber at Federation of Egyptian Industries.

Eng. Hesham Shoukry, Chairman of the Real Estate Export Council, explained that the concept of fractional real estate investment — which is based on purchasing part of a residential unit or property and offering it for sale or lease through a third party on behalf of the owner — has witnessed several unregulated practices in recent years.
This, he said, necessitated the introduction of legislation to bring order to the market. He further noted that he had participated in several sessions with Financial Regulatory Authority (FRA), which led to the development of a new law regulating fractional real estate investment and defining the roles of its various stakeholders.

For his part, Moatasem Ahmed, Director of the Investment Funds Department at the Financial Regulatory Authority outlined the details of the new amendments approved by the FRA for the establishment of real estate funds, the issuance and trading of their certificates. In addition to, the regulation of electronic platforms for fractional real estate investment.

Ahmed further affirmed that all such platforms are fully subject to the FRA’s oversight.
Meanwhile, Ayman Elsawy‏ – ‏Founder and Chief Executive Officer of Bokra Holding, stated that liquidity challenges continue to affect performance of real estate funds, particularly with high interest rates pushing many investors to lock their money into certificates of deposit.

Elsawy said that resolving these challenges would help boost trading volumes in real estate funds.
Ahmed Abou El Saad the CEO of Azimut Egypt said that the Egyptian capital market has witnessed remarkable growth in recent years thanks to the introduction of investment funds as a new mechanism for pooling investments.
This, Abou El Saad noted, has helped meet the market’s strong demand for such tools, emphasized that the FRA plays a pivotal role in paving the way through legislation and oversight that ensures proper practices and transparency.

He also pointed out that the key challenge lies in providing facilities that enable investors to easily purchase and resell real estate units at a clear value, which would boost investor confidence and ensure market sustainability.
For her part, Abeer Essam, Board Member of the Real Estate Development Chamber, said that the introduction of investment funds and real estate platforms represents an important opportunity to open new horizons for developers and increase sales.

She explained that developers welcome any mechanism that helps ease the burden of managing sales operations and asset management, allowing them to focus on development and project execution, while platforms and investment funds take on marketing and financial management with a more specialized and professional vision.
For his part, Ehab Rashad, Vice Chairman of Mubasher Capital Holding, disclosed that the issuance of a law regulating the operations of real estate funds and fractional property investment would significantly contribute to stabilizing the market.

He further explained that converting assets into tradable electronic certificates is witnessing numerous changes and experiments that need to be studied carefully to benefit the market.

Meanwhile, Ayman Abdel Hamid, Managing Director and Vice Chairperson of Al Taamir Mortgage Finance – Al Oula, proposed several steps to leverage mortgage financing in shared ownership.

He noted that cooperation between mortgage finance companies and real estate funds in studying assets before trading them would bring greater discipline to the market and ensure mutual gains for all parties involved.
Meanwhile, Hossam Gramon Partner at ADSERO – RagySoliman & Partners, highlighted the company’s successful experience with the Financial Regulatory Authority (FRA) in the field of shared ownership.

He added that new sectors such as education, healthcare, and sports need to be integrated into shared ownership to enhance market effectiveness.

Additionally, Asser Hamdy, Member of the Tourism Committee at the American Chamber of Commerce, presented several aspects through which shared ownership can be further utilized in the tourism sector, particularly given the growing demand for hotel units.

Meanwhile, Ayman Sami, Head of JLL Egypt, stated that fractional ownership is expanding rapidly worldwide, with many new experiments leveraging artificial intelligence to maximize its benefits across multiple fields.
Sami highlighted the need to study these global experiences and adapt the most suitable ones to the local market.