Court ruling to have little impact on Egypt property purchasing

Property sales will only be affected in the short term in Egypt following a recent court ruling that revoked a land purchase.

Talaat Moustafa Group (TMGH), Egypt's largest listed property developer, had been granted permission to build on land on Cairo's outskirts.

However, an administrative court suggested that the law had been broken by the New Urban Communities Authority, which had sold the land without opening up bidding to anyone else.

Chief financial officer Jihad Sawaftah noted in a statement that he did not expect the ruling to have a major impact on the mixed residential contracts already signed.

According to Reuters, the statement added: "As far as cancellations are concerned, we have not received any new cancellation requests as a result of the court decision and in general cancellations are within the normal range of operations."

Credit Suisse recently suggested that those looking to invest in property may wish to consider Egypt as the possible returns are likely to be greater than in neighbouring countries.

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