Ahmed Ibrahim Ballal
Recently, the Central Bank of Sudan had issued regulations to organize the finance of the real estate, allowing through a bulletin the banks to fund the construction of real estates, on condition that land lots are owned by the clients.
The subject matter to fund the real estate’s has received many and various reactions, especially by the economic experts, conspicuous among them is the former minister of finance, Abdul Rahim Hamdi who said that for the central bank to open the finance of the real estate for the citizens is the correct policy, pointing out that the main problem that will face the banks is funding, explaining that although are available, but the problem is how to exploit that rationally.
The manager of the real estate bank, Osman Abdul Al-Azim, affirms the ability of his bank to fund the real estates, indicating that the decision will activate many sectors, seeing that the move will help to attract additional resources to the banks.
Haitham Fathi, economist, argues that the Sudan’s market of the real estate compared with that of the neighboring countries, is the most expensive one, seeing that and due to the hike of the exchange rates, the prices of the residential lands have reached skyrocketing levels. ‘Such a trend is not without reasons to justify; unlike the cultures of the other nations which are wholly characterized by renting, that of Sudan has mainly been dominated by ownership’.
He hopes that the bulletin of the central bank of Sudan will contribute to spread widely the idea of the finance of the real estate, hoping that the decision is to bear into consideration the following: the pricing of the residential building. Levels of families’ income, inflation and the problems facing the real estates. ‘Thorough consideration of such points, will help in the return of trust to the banking system’.
The economist went to say that the real estate will make much momentum in the market by activating the related various sectors in the field which in turn are to reflect positively in the availability of accommodations for families; therefore the insurance of their future.
Former finance state minister, Dr. Izz El-Din Ibrahim, said that the order to open the finance of the real estate is associated with both advantages and disadvantages: ‘the advantages are the increase money masses which in turn are to lead to the availability liquidity in the banks-a move that is to contribute in the development of the country.
Regarding the disadvantages, he says; ‘increase in money masses will lead to increase in inflation rates- something that is to exacerbate the misery of the poor by making them the poorest ones and the rich the richest. Increase of the prices of the building materials in the coming days. And creation of a high demand to the dollar to import materials from abroad’.
The former finance state minister concluded his remarks to say that the opening of the funding for the real estate will lead to attainment of development goals, but without economic stability due to inflation.
And the banking analyst, Dr. Taha Hussein, who praised the move of the bank of Sudan to open the finance of the real estate, indicating that its halt previously is not without adverse repercussions which he enumerates as follows: the ones who deal in the area of the real estate have transferred their money to trade in other fields such the dollar that adversely affects the market by increasing the commodity prices, assuring that the move will lead the dollar traders to return to their previous jobs in the sphere of the real estate.