The Ministry of Housing, Utilities, and Urban Communities has introduced a comprehensive package of incentives aimed at supporting real estate developers and addressing ongoing challenges in the property market. According to Tarek Shoukry, Chairperson of the Real Estate Development Chamber at the Federation of Egyptian Industries, a recent meeting between the Minister of Housing and chamber representatives led to the approval of several key policy adjustments in response to developer demands. Among the most notable measures is the Ministry's decision to permit the conversion of residential, administrative, and commercial units into serviced units without incurring additional fees—a move intended to help alleviate the shortage of hotel accommodations. The Ministry has also extended the validity period for operational licenses from one year to five years and approved the renewal of a reduced 15% interest rate on land installment payments for another year, spanning from May 2025 to May 2026. Additional incentives include a six-month extension for current project deadlines and a 10% increase in permitted built-up areas, helping developers absorb rising construction costs. The Ministry committed to holding regular coordination meetings with the Real Estate Development Chamber and announced the upcoming activation of the national real estate platform, with preliminary registration expected to launch soon. In parallel, Minister of Housing Sherif El-Sherbiny announced new financial relief measures for citizens with overdue payments on residential, administrative, commercial, and professional units, as well as villas affiliated with the Buildings Finance Fund. Under this initiative, a 70% waiver on late payment penalties will be granted to those who fully settle their outstanding dues. This offer will be available for three months—from June 1 to August 31, 2025. The minister emphasized that these efforts align with the Ministry's strategic vision to stimulate development and adhere to presidential directives to reduce financial burdens on citizens. Hesham Darwish, Supervisor of the Construction and Contracting Sector at the Housing Ministry and Chairperson of the Buildings Finance Fund, added that the initiative responds directly to citizen requests for more flexible payment options. He noted that clear implementation guidelines will be provided to ensure the initiative's success and support broader economic stability. Darwish also clarified that the relief applies to units involved in ongoing or preliminary legal cases—whether at the trial or appeals level—provided full payment is made in cash, including all related legal and administrative fees. However, the incentives do not extend to cases where the client has initiated legal action against the Fund unless all such lawsuits are fully withdrawn. Additionally, units, villas, or shops subject to cancellation decisions or final enforceable court rulings are excluded, in accordance with the Fund's real estate regulations and board decisions.
