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Major Developments of 2021

Since the demand for mortgage financing is a derivative demand, due to the fact that the demand for real estate financing depends on the demand for real estate in general, it is very important to understand and regulate all aspects of this sector, whether in terms of formal market or informal one. And whereas the PCMA has a developmental role, in addition to its regulatory and supervisory roles, at the beginning of the year a meeting was held with the Land Authority – the authority responsible for the land sector (and real estate in the future) whereby several issues were discussed; the most important of which are real estate appraisal, financial leasing of real estate, and the necessity of regulating the work of real estate developers (the main supplier of real estate units that finances the sale of a considerable percentage of these units) and updating the legislation relating to mortgaging real estate for the purpose of financing. During the year, the PCMA also conducted research work and prepared a paper on the most appropriate monitory form to regulate the work of real estate developers, in a way that contributes to stabilizing this aspect of the market and introducing it within the official sector, protecting the rights of the parties. This paper was presented to the Land Authority (the body that is expected to be responsible on the regulation of this sector). Subsequently, and due to the importance of involving all relevant parties in the real estate finance sector in the process of organizing and developing the sector, the Land Authority invited the Monetary Authority and the Financial Follow-up Unit in the presence of the PCMA and informed them of the contents of the paper, and invited them to participate in the process of organizing this important sector.

And in order to complete the cooperation and unify all relevant efforts, and benefit from the experiences, the PCMA has been involved to become a member of the sectoral committee for the development of the real estate sector T the Council of Ministers, as well as a member of the Real Estate Appraisal Bidding Committee at the Monetary Authority for the purpose of completing the efforts and build on what has been done and the preparation of a memorandum of understanding between the PCMA and the Land Authority, which is expected to be signed at the beginning of 2022.

And for the purpose of controlling the practices that take place in the real estate appraisal market, and to establish future rules and regulations, the PCMA held, during the third quarter of the year, a meeting of all licensed and trained real estate appraisers, chaired by the Director General of the PCMA, discussing the reality of this sector, the challenges facing the appraisers, how to develop work in a way that serves reaching fair values of real estate, and the need to adhere to the instructions and ethics of the profession, which would raise the level of the real estate appraisal profession, due to its importance and impact on the real estate sector.

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