The passing of a real estate development bill within 6 months, MHUC
The passing of a code regulating the real estate development and the set-up of a federation for developers are two measures badly needed in the real estate market, as the market craves forsome applicable measures, according to Deputy Minister of Housing for National Projects Eng. Khalid Abbas.
Development works continue despite the pandemic-induced headwinds
In his speech delivered at Round Table Symposium under the title “Factors conducive to revival of Egypt’s real estate market,” Abbas said that the Egyptian State has managed to eradicate shantytowns in the face of coronavirus-headwinds, as development and renovation works continued unabated in the cities while strictly adhering to precautionary measures so as development goals set by the state can be fully met.
Several draftsfor regulating the real estate market
Return on real estate investment is higher than any other sector, he noted, adding that individuals are thus encouraged to invest in properties.
“The goal behind President Abd El Fattah El Sisi’s directive prohibiting the sale of units at any project before the completion of up to 30 percent of constructions is to ensure seriousness of developers and protect rights and interests of clients.”
The issuance of escrow account is one proposal received by Ministry of Housing and Urban Communities forregulatingthe market, but all proposals must be looked into from multiple, not single, angels, he explained.
A proposal for launching a federation for real estate developers
Abbas expects a law regulating the real estate development to come to light within 6 months. “The parliament will discuss in its upcoming assembly session setting up a federation for real estate developers, while awaiting the issuance of its executive statute.”
The decision could lead to the emergence of new mergers between real estate developers to bolster their respective financial position, and thus revamping the market and the incorporation of more integrated entities.
That said, he highlighted the efforts exerted by the Egyptian State and MHUC to keep up and boost the industry which brings in substantial and essential national income.
Enormous uptick in construction and building
Abbas spoke about the need to streamlinerelations between the three active players in the real estate market: the government, the developer and the client.
“Regulating this multi-party relationship will be beneficial for the market as a whole and will increase and improve significantly volume and quality of projects, besides its role in protecting the rights of clients.
“ The construction and building sector has witnessed also a huge boost, as Ministry of Housing is cooperating with the Egyptian Federation for Construction and Building in exploring opportunities that could be given to contractors in the reconstruction drive currently taking place in the Arab states.
