Egypt's real estate market is in need of clear criteria to assess developers' financial and technical capacity, according to Ahmed Shalaby, Chairperson of the housing committee at the House of Representatives. This call comes as the government moves forward with legislation aimed at regulating the sector and protecting the rights of buyers and other market participants. Shalaby emphasized the importance of transparency in discussions and proposed measures related to market regulation.
The government's proposed law regulating the real estate market aims to strike a balance between encouraging investment and protecting the rights of the state, developers, buyers, and other stakeholders. On September 15, Prime Minister Mostafa Madbouly met with developers to discuss the draft law. Consultations on the draft are expected to continue before it is submitted to the Cabinet and subsequently to Parliament. The proposed legislation includes the establishment of an Egyptian federation of real estate developers.
The Egyptian federation of real estate developers is expected to provide a professional framework for the sector, classify developers based on their financial and operational capacity, help resolve disputes, and strengthen safeguards for customers dealing with developers. The government has been consulting developers as it prepares the legislation, with Madbouly directing developers to study the draft and submit their consolidated comments.
Shalaby stressed that any new legislative framework should balance the protection of customers with maintaining market stability. He called for a clear system to classify developers based on factors including financial solvency, technical capabilities, track record, and their ability to meet contractual and execution obligations. The law should distinguish between companies that continue to execute their projects and meet their commitments and those facing difficulties.
The government is compiling data on stalled projects and examining the reasons behind delays as part of efforts to protect buyers' contractual rights and ensure that developers meet their obligations. Shalaby said cases involving projects facing execution or delivery challenges should be addressed according to the circumstances of each case, the reasons behind the difficulties, the nature of the project, and the developer's ability to complete it.
The proposed law would establish clear requirements for joining the federation, with the stated aim of ensuring that its members are companies capable of implementing their projects and meeting their obligations to customers. Real estate development is a major component of Egypt's economy, given its links with construction, manufacturing, services, and other economic activities.
Continued coordination between the government and developers will be important in developing a regulatory framework that reflects the market's operating conditions while allowing the sector to continue investing and developing projects. The government's move follows a series of measures in recent months to address delayed real estate projects and strengthen market oversight.
Key points
- Egypt's housing committee is pushing for clear financial and technical criteria for real estate developers.
- The proposed law aims to balance investment encouragement with protection of stakeholders' rights.
- An Egyptian federation of real estate developers is expected to be established as part of the new legislation.
