Egypt proposes new law to establish real estate developers union

Egypt is preparing a draft law to establish a union for real estate developers, aimed at regulating the property market and resolving issues proactively. Dr. Ahmed Amara, supervisor of the real estate and commercial affairs sector at the New Urban Communities Authority, stated that the legislation seeks to involve the private sector in market management rather than relying solely on a government regulatory body.

The proposed union would be responsible for suggesting classification rules for developers based on their technical and financial capabilities. It would also review sales contracts between developers and clients and assist in settling disputes.

To ensure compliance, the law includes a system of penalties for non-compliant developers. These measures range from formal warnings to rectify violations to final expulsion from the union. While the union will play a significant role, the state will maintain its regulatory and supervisory functions, with the relevant minister retaining authority over cases involving legal violations or harm to the real estate sector. The draft law is currently undergoing legislative review and discussions with developers before being submitted to the Cabinet and subsequently to the House of Representatives.