In an effort to reduce market risk in the real estate market in Egypt, Prime Minister Mostafa Madbouly announced a new set of regulations regarding all upcoming real estate projects.
The Housing Ministry will be keeping tougher supervision on all projects, assigning auditors on each developer, requiring semi-annual reports and requesting separate bank accounts for each project.
Depending on the size of the project, developers will have to deposit an amount equivalent to a portion of the funds needed for a phase, based on the liquidity requirements announced by the ministry.
Each project has to be split into several phases, where developers have to await ministerial approvals before moving forward from one phase to the next.
These regulations also extend to the marketing sector, as developers will now be forbidden from doing any marketing activities before gaining approval from the Housing Ministry.
Time constraints will also be tighter, as each project will have a pre-approved timeframe they need to commit to, otherwise the developer will face legal penalties from the ministry.
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