Prime Minister Mostafa Madbouly said the government is working on a new legislative and institutional framework to better regulate Egypt's real estate market, with the aim of enforcing market discipline, protecting citizens' rights and supporting serious, financially capable developers. Speaking last week, Madbouly said the government, in coordination with the Ministry of Housing and a group of leading real estate developers, is preparing what he described as a "filtering mechanism" for the sector. The proposed framework is designed to prevent major projects from being awarded to developers that lack the technical or financial capacity to deliver them. Under the new system, real estate developers would be classified according to their financial solvency and execution track record, ensuring companies do not undertake projects beyond their capabilities. Madbouly said the classification would help safeguard buyers' funds, reduce execution risks and prevent delays or project failures that could undermine market confidence. The prime minister stressed that the forthcoming legislation seeks to strike a balanced approach between the interests of developers, citizens and the state. It aims to protect customers from delayed handovers or failure to meet agreed specifications, while preserving the state's right to implement its urban development plans. At the same time, the framework is intended to support serious developers by simplifying procedures and enabling expansion under a clear and stable regulatory environment. Prime Minister Mostafa Madbouly Addressing concerns over market conditions, Madbouly dismissed claims of a slowdown in the real estate sector, noting that property sales in 2025 exceeded those recorded in previous years. He said the sector continues to function as a safe store of value, with buying and selling activity remaining resilient despite inflationary pressures and wider economic challenges. Madbouly also pointed to progress in establishing a unified real estate registration system through the national real estate identification number. He said coordination is underway with developers to list projects on the official Egypt Real Estate Platform, which aims to facilitate property sales to foreign investors and Egyptians living abroad, particularly in foreign currency, as part of efforts to boost real estate exports. His remarks coincided with the Central Bank of Egypt's recent decision to cut interest rates by 100 basis points, a move that government officials and market experts say could provide a boost to the real estate sector. Lower borrowing costs are expected to ease financing pressures on developers and stimulate mortgage lending, supporting demand in the period ahead. Madbouly concluded that the government remains committed to building a more organised, transparent and sustainable real estate market that underpins long-term urban development while protecting investors, developers and citizens alike.
