A group of real estate developers have listed their demands to revitalise and develop the sector during the closing session of a summit held recently. These measures included activating mortgage finance for units under construction, as was the case before 2008.
In addition, they called for including the real estate sector in initiative to support industry, agriculture with 11% interest rate loans, and changing the work system in the real estate sector through shifting to construction and then selling to avoid price variables and continuous cost burdens. Besides, granting additional plots of land to developers at nominal prices to compensate for current losses, and considering project completion upon construction of 70%, in addition to suspending the payment of all bonuses and additional fees that increase burdens on developers and finding a mechanism for financing projects by guaranteeing units and not customers’ checks.
Similarly, support for local manufacturing of building materials, and increase the percentage of land exploitation for current projects by no less than 25% of the current percentage.
They called for deferring payment of interest in land instalments for at least two years, with fixing the interest when paying on 10%, and speeding up the issuance of the Developers Federation Law, as well as supporting property export and establishing local real estate funds to attract foreign real estate funds.
They recommended providing lands under the usufruct system and fixing price of dollar against Egyptian pound for lands valued in dollars at the price of the date of assignment, with the need to remove dumping fees for some building materials such as steel to support developers during the current period, even if for a temporary time. Moreover, provide mortgage financing or bank financing with acceptable interest, as well as making a package of tax and economic incentives for real estate developers to ensure the continuity of the sector.