Dr. Abdel Hamid Al-Wazir: The Council of Ministers’ decisions are a lifeline for the real estate sector

Abdel Hamid: The most prominent facilitations are extending the time limit for projects, and reducing the additional interest for the Ministry of Finance

By Eman Hamed

The decisions announced by the Council of Ministers are considered a lifeline for the real estate sector, in light of the crises that the sector is going through from the high prices of building materials, in addition to the repercussions of the Russian-Ukrainian war, and finally the repercussions of the Corona virus, said Dr. Abdel Hamid Al-Wazir, head of Arabisk Real Estate Development Company and head of the Support and Follow-up Committee of the New Cairo Developers Association.

The Council of Ministers approved new facilitations for the real estate sector, most notably extending the time limit for real estate development projects by 20%, in addition to giving a deadline to the developer who has finished implementing 85% of his project to implement the 15%. The rest without a specific schedule according to the circumstances of the project, This enables the developer to compensate for the losses that occurred in the early stages of the project, in addition to reducing the additional interest imposed by the Ministry of Finance on developers from 2% to 1%.

He continued, “These facilitations will advance urban development during the coming period, through real estate development companies completing their current projects, in addition to pumping new investments to start new projects.”

He pointed out that there are many real estate development companies that have stopped selling the projects they have implemented due to the lack of a clear vision for the real estate sector in light of the economic crises in the global economy.

He stressed that the Council of Ministers response came as a result of the demand of many real estate development companies for the need for the government to intervene by launching a package of facilities to confront the successive crises, which affected their current and future investment plans.

He pointed out that the real estate sector is one of the sectors that contribute the most to the gross domestic product by no less than 20%, which highlights the importance of this sector on national income and its impact on the Egyptian economy.

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