Prime Minister Dr. Mustafa Madbouli held a meeting to discuss mechanisms to deal with the repercussions of the current global crisis on the real estate sector, in the presence of The Minister of Housing, Utilities and Urban Communities Dr. Assem Al-Jazar, Deputy Minister of Housing to follow up on national projects Engineer Khaled Abbas, officials of the concerned authorities, and a number of real estate developers.
Madboli began the meeting by referring to the government’s continued follow-up to the negative repercussions of the current Russian-Ukrainian crisis on various sectors.
Real estate developers pointed out that the real estate development sector has been significantly and directly affected by the repercussions of the Russian-Ukrainian crisis
Moreover, these repercussions have affected the real estate sector and real estate developers significantly, and this was evident in the successive rises in the prices of various building materials, as well as the rise in interest rates, in addition to the exchange rate of the dollar, and other negative effects on this sector, and therefore the cost of implementing real estate projects has increased significantly, which requires rapid intervention, in order to maintain this vital sector
During the meeting, real estate developers made several proposals to mitigate these impacts on the real estate sector, namely, to raise dumping duties on some building materials so that the required balance would occur in the local market, and they also proposed working to activate mortgage initiatives with the private sector.
Real estate developers said: There are emergency conditions to which all economic sectors are exposed, taking into account the high cost resulting from the current crisis, which calls for a comprehensive view of the negative effects, so that real estate developers are allowed a specific period of time in delaying the delivery of real estate projects.
The Minister of Housing, Utilities and Urban Communities, Dr. Assem Al-Jazar, followed up on these proposals by noting that some of these proposals can be studied and met, while other demands and proposals fall outside the scope of the Ministry’s work..
The Prime Minister concluded the meeting by noting that a working group would be formed immediately under the supervision of the Minister of Housing, whose task would be to hold meetings with real estate developers to agree on a number of mechanisms to deal with and mitigate the repercussions of the global crisis.
Dr. Mustafa Madbouli also noted that an urgent meeting will be held with major iron and cement manufacturers to discuss the price hikes in local markets, which will be attended by the head of the Consumer Protection Agency.
He noted that there are directives from President Abdel Fattah al-Sisi, president of the Republic, to work to facilitate the procedures of mortgage finance, in order to speed up the marketing of housing units implemented by the state and the private sector, and a meeting will be held with the officials concerned to discuss this matter.