Egypt’s real estate market requires clear criteria for assessing developers’ financial and technical capacity as the government moves forward with legislation aimed at regulating the sector and protecting the rights of buyers and other market participants, Ahmed Shalaby, Chairperson of the housing committee at the House of Representatives, said.
Shalaby stressed the importance of maintaining transparency around discussions and proposed measures related to market regulation, saying buyers and other market participants should be kept informed of developments and the regulatory steps under consideration.
The comments come as Egypt advances preparations for a new legal framework governing real estate development.
On 15 September, Prime Minister Mostafa Madbouly met with developers to continue discussions on a proposed law regulating the real estate market. The government said the draft aims to strike a balance between encouraging investment and protecting the rights of the state, developers, buyers, and other stakeholders. 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, according to the Housing Ministry. The federation 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’s move follows a series of measures in recent months to address delayed real estate projects and strengthen market oversight. In September, the government said it was 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 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 also distinguish between companies that continue to execute their projects and meet their commitments and the limited number of developers facing difficulties with implementation or delivery, he 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,” Shalaby said, according to the statement.
He added that such an approach would seek to protect customers while allowing developers with the capacity to continue their projects to address implementation challenges.
The government has been consulting developers as it prepares the legislation. During the 15 September meeting, Madbouly directed developers to study the draft and submit their consolidated comments before it is presented to the Cabinet. The discussions covered, among other issues, transitional provisions, registration requirements, customer protections in cases of default, and the proposed federation’s role in developer classification and dispute resolution.
The government first reviewed a proposal for an Egyptian federation of real estate developers in August. At the time, officials said the proposed system would introduce unified classification criteria based on project size, financial capacity, and operational capabilities.
In a 7 September update, the Housing Ministry said the draft 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.
Shalaby described real estate development as a major component of Egypt’s economy, given its links with construction, manufacturing, services, and other economic activities.
The housing committee chairperson said continued coordination between the government and developers would be important in developing a regulatory framework that reflects the market’s operating conditions while allowing the sector to continue investing and developing projects.
