Mamdouh Badr El-Din, Federation of Egyptian Chambers of Commerce Real Estate Investment Chamber head, declared that the recent six-month- construction permits ban will negatively affect on the sector and customer alike; and causes a rise in the unemployment rate in the construction sector, Invest-Gate reports.

“We are totally aware of the decision’s objective to wipe out deviations, but it didn’t settle the future of current contracts with all clients concerning the ongoing licensed projects”, Badr El-Din highlights.

Badr El-Din adds that the delay for six months will disrupt contracts, not to mention the implementation rate, which companies are obliged to; this will certainly affect their reputation.

He notes that the decision should be reviewed in order not to harm the contracting parties, and has to be applied on those who violate the law or have a record of infringement.

Furthermore, the decision affects the employment rate negatively with investments being diminished, which will deepen the construction sector suffering amid COVID-19, as well as imbalance in supply and demand mechanisms; prices are projected to increase coupled with a decrease in residential units.

“Infringements are set to be reviewed in accordance with the emergency law during this critical time; and it would be sufficient,” he elucidated.