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Egypt’s Minister of Housing, Utilities, and Urban Communities Sherif El-Shorbagy has approved several new measures aimed at supporting the real estate sector, including establishing fixed land prices and extending operating licenses for administrative buildings.
The decisions were made in response to demands from the Real Estate Development Chamber at the Federation of Egyptian Industries, following a series of correspondences and meetings with Chamber Chairperson Tarek Shoukry.
Shoukry stated that the new decisions include directives from the Minister of Housing to establish a fixed price for land at the start of the offering. Previously, a system was in place where an initial price was set at the beginning of the offering, and the final price was determined upon contract completion. This uncertainty posed investment risks as developers had to account for unknown land prices in their project feasibility studies.
“The fixed price system will end the debate over the existence of two different land prices,” Shoukry said.
Shoukry added that the Minister of Housing has approved the registration of both developed and undeveloped land for projects that have reached 80% completion. This decision provides a financial boost for developers by allowing them to register the entire project, helping to absorb some of the impacts experienced by companies in recent times and supporting developers in the swift completion of their projects.
The Chamber previously secured approval from the Ministry of Housing a year ago to consider 80% of the project completion as fully completed.
Shoukry also noted that the Minister of Housing has agreed to extend the issuance of operating licenses for administrative buildings to every 5 years instead of annually while maintaining annual reviews by the Civil Defense. This change reduces procedures and burdens on developers compared to the previous annual licensing process.
The Chamber expressed its gratitude for the Minister of Housing’s earlier approval to fix the interest rate at 15% on land instalments for one year, from May 2024 to May 2025.
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