In a significant move to enhance investment and support the economy, Engineer Sherif El-Sherbini, Minister of Housing, Utilities, and Urban Communities, has responded to key demands from the Chamber of Real Estate Development at the Egyptian Federation of Industries. The demands, highlighted in a series of communications and meetings led by Engineer Tarek Shoukry, Chairman of the Chamber, were aimed at easing the challenges faced by real estate developers.
Engineer Tarek Shoukry expressed his gratitude to Minister El-Sherbini for his prompt response and the support extended to developers, which is expected to have a direct positive impact on the economy. Among the key decisions, the Minister directed the establishment of a fixed land price at the start of the offering process, eliminating the previous system where land prices could change by the time contracts were finalized. This change addresses the investment risks associated with uncertain land pricing.
Additionally, the Minister approved the registration of both developed and undeveloped land for projects that have achieved 80% completion. This measure provides financial flexibility for developers, allowing them to leverage fully registered projects to mitigate the financial shocks experienced by companies in recent times.
Furthermore, the Minister agreed to extend the issuance of administrative building operation licenses from one year to five years, with annual reviews by civil defense authorities. This extension reduces bureaucratic burdens and eases the process for developers.
The Chamber also expressed appreciation for a prior decision by the Minister to fix the interest rate on land installment payments at 15% for one year, from May 2024 to May 2025, providing further financial stability for developers.