|09 January, 2019

Egypt plans to issue Real Estate Development Law within five months

The draft law is expected to be submitted to the parliament in February

Image used for illustrative purpose. View Of Cityscape With River In Foreground.

Image used for illustrative purpose. View Of Cityscape With River In Foreground.

Getty Images/Saif Alsadoon

Egypt - In the current parliamentary session, it has to issue some real estate laws, namely, the Real Estate Development Law, the Real Estate Tax Law, the Unified Building Law, the Reconciliation of Building Violations and the Tenders Law, according to MP’s housing committee member Mohamed Abdel Ghany.

Abdel Ghany said that the Real Estate Development Law will be issued within five months.

Furthermore, Abdel Ghany noted that the draft law is currently being discussed by the housing committee in the ministry of housing, and is expected to be submitted to the parliament in February to be discussed and approved.

The Real Estate Development Law was submitted by the Real Estate Development Chamber at the Federation of Egyptian Industries.

The law is being discussed as there are some disputes surrounding the law, in addition to some reservations by developers on the period of completing projects, their delivery dates, and fines imposed on them.

The law aims to preserve the rights of all parties, consumers, developers, and the state, he indicated.

Additionally, he explained that the law regulates the offering of lands at affordable prices and obligates developers to fulfil their required duties in time and commit to the specifications of the contracted property.

Moreover, Abdel Ghany disclosed that the Real Estate Development Law and the Unified Building Law are supposed to be issued before the end of current legislative session.

For his part, Alaa Waly, head of the parliament’s housing committee, he said that the Real Estate Tax Law has been approved and will be issued within one month.

Waly added that the amendments of the law comprise of four articles, namely the price of the units.

He elaborated that the amendments stipulate that the tax rate shall become the sum of the area of the taxable property in the estimated amount per square meter of this area, after deducting 20% of the estimated value of each property for the premises used for housing purposes, and then deducting 15% for premises used for non-housing purposes.

The parliament has approved in its plenary session on 23 December 2018 a final draft law submitted by the government on the amendment of some provisions of the Real Estate Tax Law No 196 of 2008. 

Waly explained that the amendment states the bound tax shall be due to the first estimate as of July 1 2013, and as of January 1 of each year, in accordance with the provisions of the law. Additionally, this estimate is to be continued until the end of December 2021.

 
 

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