Dr. Ahmed Shalaby, CEO and Managing Director of Tatweer Misr and President of the Egyptian Real Estate Council, comments on the decision of the Ministry of Housing, Utilities, and Urban Communities to stop the system of allocating land for foreign currency.
“This decision is very positive and fully aligned with the current period. It will restore the Egyptian real estate market balance and strengthen the pound against foreign currencies.
The decision will undoubtedly contribute to increasing the demand for land from Egyptian real estate companies and local investors. This will lead to the launch of more real estate projects and increase the percentage of developed land from 7% to 14%, in line with Egypt’s Vision 2052.
The state’s decision to allocate land in dollars came at an exceptional time and directly contributed to increasing the flow of foreign currency into the Egyptian market during its application. However, the continued mechanism of selling land in dollars does not fully comply with the principle of equal opportunities between real estate companies.
The market has witnessed in the past period many decisions that reflect the state’s comprehensive vision regarding the promotion of the economic reform plan and support for various sectors. It deals very wisely with the requirements of each stage.”
Minister’s decision:
Housing Minister Assem El Gazzar stated last Saturday that the system of allocation in foreign currency from abroad has been stopped as of June of this year, to evaluate the situation and review the various results of these offerings and their compatibility with the policies pursued by the Central Bank regarding foreign exchange. Investors and non-Egyptian companies are exempt from this.
He added that this decision also includes suspending the giving of priority to payment in dollars when applying for land that the authority provides on its website.
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