Egypt real estate contract review aims to balance stakeholder rights

Daker Abdellah, head of the Crisis Management Committee at the Egyptian Federation for Construction and Building Contractors, stated that President Abdel Fattah el-Sisi’s directives to review real estate developer contracts are a vital step toward regulating contractual relationships in the property market.

Abdellah emphasized that the review aims to balance the rights of the state, developers, and clients amidst economic fluctuations and rising construction costs. He noted that no single party should bear the sole responsibility for exceptional economic circumstances. To ensure market stability, he proposed implementing clear mechanisms for handling force majeure, cost changes, and delivery timelines.

Furthermore, Abdellah suggested establishing stable, long-term payment schedules for land dues that align with project execution cycles and developer cash flows. This approach is intended to alleviate financial pressure on companies, ensuring they can complete projects on schedule without imposing unsustainable burdens on any party.