Experts: «Freezing» real estate units disable the wheel and damage the economy

Experts: «Freezing» real estate units disable the wheel and damage the economy

Reda Mosallam, General Manager of Truth Economic & Management Consultancy said, “The continued closure of residential or commercial units for more than a year is detrimental to the national economy because it disrupts high-cost economic resources and leads to” intervention “in the market, And the establishment of an unrealistic “upset” balance between supply and demand, which is reflected in the continued increase in rents in relative terms.”

He suggested imposing a fee on closed real estate units up to 20% of the average rental value in the building or area, which would encourage the landlord to put it up for rent, because in this case he would compare between his fees due to closure and the rental yield expected to be put on the market, calling for the use of the proposed fee, if approved, in the development of the real estate sector, and the establishment of real estate projects of economic feasibility.

He stressed the importance of relying on the mechanism of supply and demand for the benefit of all parties in the medium and long term, so that the rental value reflects the real relationship between supply and demand.

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