Government Policies & Investment
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Market Watch Report GOVERNMENT POLICIES & INVESTMENT www.invest-gate.me January 2017 /invest-gate /invest.gate_magazine Information in this report is based on official an- nouncements by both developers and the Egyp- tian government. All figures and facts obtained through news mediums have been confirmed from at least two different sources. This text is intended solely for general market evaluation purposes. Any decisions based on conclusions from this document are the sole responsibility of the reader. Reproduction of any part of this doc- ument is prohibited without written consent. 2 LATEST INDUSTRY UPDATES World Bank Delegation Follows Up on Rural Public Lottery for Dar Misr Units to Begin Sanitation Program Thursday Minister of Housing, Utilities, and Urban Communities Mosta- The public lottery for units in the Dar Misr middle-income fa Madbouly met with a World Bank delegation to discuss up- housing project is set to start on December 8 and continue to dates on the Rural Sanitation Program that was signed earlier December 18, according to Minister of Housing, Utilities, and this year. The first phase of the project is expected to serve 155 Urban Communities Mostafa Madbouly. This public lottery in- villages across three governorates including Dakahlia, Sharqi- cludes residential units located in New Damietta City, New Cai- ya, and Beheira. ro, Shorouk City, Obour City, 10th of Ramadan City, Badr City, Sheik Zayed City, and 6th of October City. Madbouly Approves New Social Housing Law The Board of Directors of the Social Housing Fund, headed by Real Estate Appraisal Association Demands Minister of Housing Mostafa Mabdouly, approved a new law Increase in Assessment Fees governing social housing and real estate funds, in preparation The Real Estate Appraisal Association has requested that for presenting it to the Cabinet. The new law ensures that pre- banks increase real estate assessment fees by 100% following vention of any violations against the social housing system, the flotation of the Egyptian pound. The board and members also ensuring that some of the allocated resources will be dedi- of the association met to reach this decision, which was wel- cated to developing informal settlements, Madbouly confirmed. comed by National Bank of Egypt, Banque Misr, and the Arab Investment Bank. 2,500 Acres to be Developed in New Assiut City Government to Raise Tariff on Water Bills The New Assiut City Authority has completed the planning for Next Month 2,500 acres of land, as part of the expansion plan, which will The Egyptian government is expected to raise water bills fee in see the development of 30,000 acres. Ahmed Omran, Head of houses and commercial areas as of January 2017 “in an effort New Assiut City Authority, said, “Designs for the project have to decrease subsidy on drinking water,” Mohy El Seir, spokes- been finalized and presented to the New Urban Communities man for the Holding Company for Water and Wastewater, said. Authority for approval. We expect to offer the designs to con- This latest tariff increase marks the second increase in the past tractors next year.” two years. Administrative Capital Units to Go on Sale in Cabinet Approves Deadline Extension for Q1 2017 Real Estate Projects Administrative Capital for Urban Development is currently pric- Following numerous requests from contractors to postpone ing the units in preparation to market them for sale in the first projects delivery dates, the Egyptian Cabinet has agreed to quarter of 2017, sources at the Ministry of Housing, Utilities, extend deadlines on real estate projects, according to Head of and Urban Communities said. The Ministry of Housing has giv- the Egyptian Federation for Construction & Building Contrac- en contractors a year to finalize the construction of the residen- tors Hassan Abdel Aziz. tial neighborhood located in the New Administrative Capital. Housing Projects for Youth to be Developed Sheikh Zayed City Demands EGP 100 mn for in New Valley Projects Development A total of 421,700 square meters of housing projects across The Sheikh Zayed City Authority has requested of Planning, three villages in New Valley governorate have been dedicat- Monitoring and Administrative Reform an additional budget ed for youth at affordable prices, announced to Governor of worth of EGP 100 mn as part of the city’s current budget that New Valley Mahmoud Ashmawy. Another 31 acres of land is allocated for Dar Misr project , an electricity station, and a have been allocated to a charitable institution for agricultural central park. Around EGP 70 mn of the requested additional purposes and will be developed in partnership with the Social budget will be allocated to implement 1,608 residential units of Development Fund. Dar Misr and finalizing an electricity station. 983 Units Allocated in Dar Misr Project, New Mortgage Companies Provide EGP 783 mn by Damietta October 2016 At a public lottery held on Thursday, 983 units part of Dar Misr Total real estate funding activity amounted to EGP 783 mn in the middle-income housing project in New Damietta were distrib- first 10 months of 2016, compared to last year’s EGP 732 mn, uted among winners. The lottery was open to applicants who marking a 7% increase, according to Sherif Samy, head of the provided a down payment. Supervisor of the Commercial and Egyptian Financial Supervisory Authority (EFSA). The total assets Real Estate Sectors at the New Urban Communities Authority of mortgage companies amounted to EGP 2.8 bn in the same peri- Tarek El Sebaey said, “non-winning applicants are to receive a od, marking a 10% increase from last year, Samy continued. full refund on their payments on January 8.” 3 LATEST INDUSTRY UPDATES ARCO Pursues Development in New Adminis- NUCA Approves Several Amendments Over trative Capital Land & Housing Fees With more lands up for grabs next year, ARCO for real estate The board of the New Urban Communities Authority (NUCA) development is pursuing investment in the new Administrative has approved the reduction of administrative fees that are ap- Capital City. “It is considered an investment haven in the up- plied on the purchase of land plots for an entire year, in efforts coming period,” ARCO CEO Ashraf Salman said, explaining to facilitate procedures for investors in new cities. NUCA has the company’s eagerness to set foot in the new capital once also approved a new offering method for land plots dedicated the Egyptian government offers land plots as promised. to industrial activities in the new cities. Development Tenders to be Offered within Commercial Units Sold for EGP 6,000 Per Several Cities Square Meter in Sadat City Tenders will be offered to the Egyptian Federation for Construc- A total of 30 commercial units were sold in a public auction tion & Building Contractors (FCBC) members, to develop dif- in Sadat City on Thursday, with prices ranging between EGP ferent infrastructure projects within the social housing project 2,600 and EGP 6,000 per square meter. The office units were at New Borg El Arab City, according to Head of the City’s Au- offered with floor plans ranging from 63 square meters to 133 thority Ahmed El Desouky. The construction works will include square meters, located near commercial and residential areas, developing inner roads in Borg El Arab City and electricity net- according to Mohamed Ashour, head of the Sadat City Author- works in Sadat City, according to Head of Sadat City’s Authority ity. Mohamed Abdelrahman. NUCA Facilitates Regulations for Investors 10 Land Plots Assigned Commercial Projects The New Urban Communities Authority (NUCA) has approved in Sadat City a number of facilitations for investors, including reducing ad- A total of 10 land plots, serving commercial projects to be allo- ministrative fees for land plots, reported Al Mal. Additionally, for cated in Sadat City next year. Starting at 200 square meters, investors paying in installments, they are exempted from pen- the plots are located in a lively public service area in Sadat alties and interests if they complete the payments within three City. “The city authority will hold an auction for all retail spaces months of accreditation. on offer within the upcoming months,” said Head of the City’s Authority Mohamed Ashour. Dar Misr Homes Allocates 6,520 Units Through Lottery Egypt’s New Capital Completes 30% of its A public lottery was held to allocate 6,520 houses in Dar Misr Infrastructure project, a social housing project for middle income citizens im- Approximately 30% of the first phase of Egypt’s Administrative plemented in several cities, on December 18. The offered units Capital infrastructure has been completed, Minister of Housing, are in six new cities with around 2174 applicants are compet- Utilities, and Urban Communities Mostafa Madbouly informed ing. President Abdel Fattah Al Sisi. In his recent meeting with Al Sisi, Madbouly also stated that governmental/office buildings’ Commercial Complex to be Developed in New master-plans have been finalized for the governmental district. Minya Land plots measuring a total of 13 acres have been prepared to develop a commercial/service project in New Minya City with Several Hypermarkets to be Implemented in the meter square priced at EGP 1,315, according to Mohamed New Cities Al Kosary head of the City’s Authority. The city has previously requested NUCA to offer 15 land plots to construct a mall, uni- New Urban Communities Authority (NUCA) is expected to versity, and schools. launch a number of hypermarkets branches across Sadat City and Borg El Arab City. Following Minister of Housing, Utilities, and New Urban Communities Mostafa Madbouly emphasizing Egypt Showcases Housing developments at the importance of launching of major commercial chains in the Arab Council, Riyadh new cities in Upper Egypt, NUCA is expected to implement a number of hypermarket branches across Sadat City and Borg Minister of Housing, Utilities, and Urban Communities Mostafa El Arab City.