Ten different ministries in the Cabinet are studying the possibility of compensating real estate developers for losses incurred due to recent economic decisions, in cooperation with the committee for compensations at the Ministry of Housing, Utilities, and Urban Communities, reported Shorouk News.
The committee has vowed to work collaboratively with the ministries and other authorities to reach a resolution, according to Mohamed Nasser, head of the committee.
The committee is forming sub-committees that will thoroughly study the in effects of the VAT, pound flotation, and subsequent increase in the US dollar’s price on the construction process for developers. This will be followed by providing the adequate compensation, following the approval of Minister of Housing Mostafa Madbouly, within 10 days.
Several suggestions were made to Madbouly for methods to compensate developers and tackle real estate challenges, including extending the deadline for projects for an additional of six months, providing the differences in prices that occurred due to economic decisions, and approving a balanced contract between state and developers, according to Hassan Abdelaziz, President of the Egyptian Federation for Construction and Building Contractors.