Egypt’s Ministry of Housing has introduced several new measures to support the real estate sector. Minister Sherif El-Shorbagy announced a key decision: the establishment of fixed land prices. This new system replaces the old method where prices were set at the start of the offering but finalised only upon contract completion. Before, developers faced uncertainty. They had to account for fluctuating land prices when planning their projects. Fixed prices will remove this risk, making it easier for developers to plan and invest with confidence.
EXTENSION OF BUILDING LICENSES IN EGYPT
The Minister approved extending operating licenses for administrative buildings. Developers no longer need to renew these licenses every year. Instead, they will renew them every five years. This change will reduce the burden on developers by cutting down on procedures and costs. The Civil Defence will still conduct annual safety reviews, but the process will now be more streamlined.
REGISTRATION OF DEVELOPED AND UNDEVELOPED LAND
Developers can also now register both developed and undeveloped land for projects that are 80% complete. This decision offers financial relief to developers. It allows them to register entire projects, which helps them finish at a quicker pace. By doing so, the government aims to support developers in completing their projects efficiently. The Chamber of Real Estate Development has already secured approval for the 80% rule. This rule treats 80% completion as full completion, benefiting the industry.
FIXED INTEREST RATE ON LAND INSTALMENTS
The Ministry had earlier fixed the interest rate on land instalments at 15% for a year, from May 2024 to May 2025. This decision was also met with approval by developers. This is because it provides more predictability and stability in financial planning.
THE POSITIVE IMPACT ON EGYPT'S REAL ESTATE MARKET
These measures mark a significant step forward for Egypt's real estate sector. By addressing developers' concerns and reducing financial uncertainties, the Ministry of Housing aims to foster growth and stability. So developers now have a clearer and more stable environment in which to operate. This will likely encourage more investment in Egypt's real estate market, benefiting both developers and the economy.
Overall, the government is showing strong support for the Egyptian real estate sector. They understand that real estate drives economic growth. So introducing fixed land prices and extending building licenses offers a major benefit. These steps will help create a stronger and more secure real estate market.
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