Ahmed Al-Batrawy: Digital Transformation and Governance Are the Solution to Avoid a Real Estate Bubble in Egypt
With growing discussions about a potential real estate bubble in the Egyptian market, Ahmed Al-Batrawy, real estate development expert and founder of Egypt Real Estate Platform, emphasized that the real solution to avoid any crisis lies in establishing a comprehensive digital system that strengthens governance and ensures transparency across all stages of development, financing, and sales.
Al-Batrawy stressed that digital transformation is no longer an option that can be postponed, but has become an essential condition for building a safe and sustainable real estate market that aligns with global standards. He pointed out that digitalization today represents the main safeguard for the stability of the real estate sector and the protection of all stakeholders’ rights.
Real Estate Is No Longer Just Buying and Selling — It’s an Integrated Economic Industry
Al-Batrawy explained that the real estate sector is no longer merely about buying and selling units, but has evolved into a comprehensive economic industry managed through interconnected financial, legislative, and marketing systems. This transformation requires the establishment of an advanced digital infrastructure that enables the state to track every sale or financing operation in real time.
He asserted that such a digital system would protect the rights of citizens and investors, and prevent any undocumented or illegal practices. He also highlighted that creating a unified electronic platform for contract and financing registration would bring an unprecedented level of transparency and discipline to the market, while helping to monitor real supply and demand indicators.
Al-Batrawy added that technology has become the most powerful tool for regulating the market and preventing future disruptions that could threaten its stability or investor confidence.
Banks Are the Natural Source of Real Estate Financing
The expert called for restructuring the real estate financing system in Egypt so that banks and licensed financial institutions — not developers — handle financing responsibilities. “It is illogical for developers to continue offering financing plans without financial supervision or official licenses,” he said, “as this role is exclusively reserved for banks in all developed markets.”
He added that some current payment systems lack transparency and proper documentation, creating ambiguity in the contractual relationship between clients and developers. Al-Batrawy urged the Financial Regulatory Authority (FRA) to require developers to obtain prior licenses for any financing product before its launch, and to document installment details, interest rates, and contracts to protect clients from unregulated or unfair practices.
“The Supreme Egyptian Real Estate Authority” — A Framework for Market Regulation
Al-Batrawy noted that the government has already begun taking significant legislative steps to regulate the real estate market and protect consumers. However, true reform, he said, requires the establishment of a “Supreme Egyptian Real Estate Authority” as an independent body that oversees the entire sector and sets balanced policies that serve citizens, developers, and investors alike.
He explained that this authority should include representatives from government institutions, the private sector, and civil society, alongside the Financial Regulatory Authority, to form an integrated supervisory system that monitors every project phase — from planning to delivery.
He also called for standardized contracts, advertising regulations, and a ban on cash transactions outside the banking system, ensuring that all payments go through government-monitored escrow accounts to strengthen market confidence and prevent violations.
Tackling the Real Estate Bubble Starts with Legislation
Responding to growing concerns about a “potential real estate bubble,” Al-Batrawy emphasized that the issue is not just about rising prices or increased supply, but about the lack of proper management and regulatory frameworks.
“As long as market regulation remains in the hands of developers alone,” he said, “reform will not happen, because those who benefit from market imbalances cannot be the ones entrusted to fix them.”
He asserted that establishing a neutral regulatory authority capable of monitoring and enforcing compliance is the only way to protect the market from potential disruptions and ensure the steady flow of local and foreign investments with confidence and stability.
Al-Batrawy concluded by reaffirming that digital transformation and governance are the two fundamental pillars for building a modern and well-regulated Egyptian real estate market.
“When the market operates through a transparent digital system,” he said, “and banks take full responsibility for financing, fairness and credibility will prevail among all parties. We will witness a safer, more sustainable, and more attractive market for both local and international investors.”
