Egypt drafts new real estate governance law, plans unified body for developers
The Egyptian government is moving forward with a comprehensive plan to regulate the country’s real estate market through a new legislative framework aimed at strengthening governance, preventing project delays, protecting buyers, and establishing a unified entity for real estate developers.
The initiative comes as authorities seek to safeguard one of Egypt’s most important economic sectors while improving discipline and transparency amid the rapid expansion of real estate and urban development projects nationwide.
Minister of Housing, Utilities and Urban Communities, Randa El-Menshawy, announced that the government is preparing to introduce a set of stricter controls designed to prevent financially or technically unqualified developers from entering the market and launching projects beyond their capabilities.
Speaking during a meeting with Prime Minister Mostafa Madbouly to review mechanisms for regulating the real estate market, El-Menshawy said the proposed measures would ensure developers comply with delivery schedules and contractual obligations, helping to avoid stalled or delayed projects that could undermine confidence in the sector.
She said the government’s approach seeks to strike a balance between the interests of the state, citizens, and serious investors, while preserving the sustainability of investments in the real estate industry.
During the meeting, the housing minister reviewed a draft law aimed at governing and regulating the real estate development sector, alongside plans to establish an official entity representing developers and classifying them according to specific financial and technical criteria.
The proposed legislation forms part of broader state efforts to improve the investment climate, protect buyers and investors, and establish clearer operational rules for Egypt’s rapidly expanding property market.
According to El-Menshawy, the proposed organisational model for the developers’ body is based on a governance framework similar to that used by the Egyptian Federation for Construction and Building Contractors, including mechanisms for licensing, oversight, and categorising developers according to their capabilities and track records.
She noted that the classification system would help ensure major projects are undertaken only by companies with sufficient financial strength and technical expertise, reducing risks associated with project delays or non-completion.
El-Menshawy added that the New Urban Communities Authority already applies strict contractual frameworks and internal regulations governing developers operating within its jurisdictions. These measures, she said, enable authorities to act against violations while protecting public resources and buyers’ rights.
The minister said the new framework is expected to enhance the competitiveness of Egypt’s real estate market regionally and internationally by raising governance standards and increasing investor confidence.
For his part, Madbouly reaffirmed the government’s commitment to regulating the real estate sector, describing it as a key pillar of the Egyptian economy and a major driver of investment, employment, and urban expansion.
He stressed the importance of maintaining growth momentum while addressing structural challenges and curbing unregulated practices that could negatively affect market stability.
Madbouly also underscored the need to achieve greater governance and discipline within the market while ensuring a fair balance between the interests of all stakeholders, including the state, developers, investors, and homebuyers.
The prime minister highlighted the importance of protecting the long-term sustainability of the sector and preventing irresponsible practices by some companies that may undermine market credibility.
Meanwhile, government spokesperson Mohamed El-Homsani revealed that authorities are studying the creation of a unified umbrella body bringing together all real estate developers operating in Egypt.
El-Homsani said the proposed entity would play a central role in regulating the market and protecting buyers by classifying developers according to financial strength, technical qualifications, and implementation capabilities.
The system is intended to prevent developers lacking adequate resources or expertise from undertaking projects beyond their capacities.
He added that the government is currently working on an integrated legislative and institutional framework aimed at regulating the real estate market while balancing the interests of the state, buyers, and developers.
As part of the government’s broader strategy to maximise the use of real estate assets, Madbouly also directed the Ministers of Housing and Justice to conduct a nationwide inventory of unused land plots and vacant residential units.
The directive includes studying mechanisms to accelerate development and occupancy, with the aim of increasing housing supply, improving urban utilisation, and enhancing the overall efficiency of Egypt’s property market.
The proposed reforms come amid growing efforts to strengthen governance and reinforce confidence in Egypt’s real estate sector, which has become one of the country’s largest investment destinations and a significant contributor to economic growth in recent years.
The post Egypt drafts new real estate governance law, plans unified body for developers first appeared on Dailynewsegypt.
المصدر: Daily News Egypt