The Real Estate Investment Division of Federation of Egyptian Chambers of Commerce (FEDCOC) is preparing for a meeting with Minister of Housing and Utilities Mostafa Madboly in the upcoming days to discuss the initial draft of real estate developers’ union law, according to head of the division Mamdouh Badr El-Din.
Badr said the minister initially agreed on the draft law and the upcoming meeting will address all its items. International legal expert Hany Sarie El-Din, who drafted the law, will participate in the meeting in addition to a number of real estate developers.
The Real Estate Investment Division held a meeting with the Madbouly on Monday, where they agreed to adopt the new real estate regulation by the cabinet soon. They also discussed the high prices of lands recently allocated by Urban Communities Authority via the single window system.
Badr said there are some concerns from the continuing increase of land prices, which is expected to negatively affect customers and those who want to acquire housing units. The land price level does not suit the largest segment of real estate companies, which build housing units for the mid-range category.
According to division deputy Hesham Shoukry, the division, the Construction Committee of Businessmen Association, and the Egyptian Real Estate Council have agreed on the draft law during a meeting held last Thursday.
Shoukry said the registration in real estate developers’ union has become mandatory for every developer who works on an area of two acres or 10,000m of buildings at minimum. The registration will be optional in the case of smaller areas.
The division membership is open to all real estate sector developers who are interested in joining the division whatever their volume of business.
He said the new law’s executive regulations will provide clear definitions for agricultural, real estate, and industrial developers. The law focuses on the comprehensive concept of real estate development which includes all residential, administrative, commercial, industrial, tourism, and agricultural sectors.
A real estate developer constructs the infrastructure on the lands whether residential, agricultural, industrial, business, health, and education facilities in new cities. An industrial real estate developer builds the plant and supplies utilities, while an agricultural developer processes the land and establishes services, health units and buildings, such as the 1.5m acre project.
According to Fathallah Fawzy member of the Real Estate Investment Division of the Federation of Chambers of Commerce and head of the construction committee of the Egyptian Businessmen’s Association (EBA), after the approval by the Ministry of Housing on the draft law regarding the real estate developers’ union, there will be meetings between the division, the construction committee of the EBA, and the Egyptian Real Estate Council. The purpose of these meetings is to establish the final articles of the law by meeting needs of the sector and all its employees.
All parties in the real estate sector are eager for a law that contributes to servicing the market and stimulating investment, member of the board of directors of Real Estate Investment Division and chairman of the Egyptian Real Estate Council Adel Lotfy said.
Secretary General of the Egyptian Real Estate Council and member of the Real Estate Investment Division Tarek Shoukry emphasised that all articles of the draft law complied with demands from real estate workers, especially after the debate and review of all comments that guaranteed that this law will appease sector workers.