Several projects and parcels of land will be offered before the month’s end to individuals and developers in new cities, Minister of Housing Mostafa Madbouly announced during the Cityscape Egypt Business Breakfast on Wednesday.
On the rising costs of land and the real estate regulations, the minister stated that “bids were made by people who are inexperienced, and this led to soaring land prices”.
“We have tried to regulate the relationship between the real estate investor and the government,” the minister said. “These are two faces of the same coin so we should not be competing. In the past some regulations have been found to be oriented in the interest of the state.”
Madbouly noted that the government is seeking to draft regulations in a manner that “reflects the partnership between the state and the investor and that works in both their interests”.
Discussing the budget for new housing, the ministry said it has more than doubled during this fiscal year (FY), adding that an allocation of EGP 28bn is expected for FY 2015/2016.
The assistant to the Minister of Investment, Yasser El-Naggar, said the ministry is preparing for the issuance of some investment laws prior to the summit.
“We are determined to hold this Summit in a way that reflects the seriousness of the requirement to attract more investors and that reflects Egypt’s policy concerning economic and social reform,” El-Naggar said.
Conference attendees from the construction sector showed their optimism regarding the sector’s future.
“We are in a much better position than last year,” Managing Director of SODIC Ahmed Badrawi said. “The private sector should work hard and not aim to be demanding. But the market looks very optimistic.”
Earlier this week, SODIC announced that it is expecting the value of signed contracts in 2015 to record EGP 4.1bn, compared to EGP 3bn the previous year.
The company added that the exact value of investment during the year will be EGP 2.3bn. Chairman of Al-Ahly Real Estate Development Hussein Sabbour highlighted that obstacles still exist. He further explain saying that bureaucracy “is the main enemy”.
Sabbour mentioned that the having regulations will improve the situation but it won’t be the magical solution.
“Until now it is not clear which new cities are aligned with which governorate or sector,” Sabbour said.
An official body is required to coordinate and handle the licensing and implementation process, Sabbour noted.