Egypt Daily News – The Egyptian government has announced sweeping changes to how it manages the legal reconciliation of land use changes, signaling a shift in national urban development strategy. In a key decision, the New Urban Communities Authority (NUCA), under the Ministry of Housing, has abolished cash penalties for converting agricultural land to urban use for plots exceeding five feddans (approximately 5.2 acres). Instead, landowners will be required to compensate the state with a portion of their land, a move aimed at securing prime land assets for public use.
According to a policy document, NUCA attributed the change to the “sharp increases in the costs of infrastructure and utility distribution networks.” The authority stressed that land use changes will now be resolved exclusively through in-kind contributions, eliminating the option for cash payments or fines.
Land-for-State Policy: Tiers of Concession
The new rules define concession rates based on land area:
- 75% of the total area for plots exactly 5 feddans
- 65% for land between 5 and 20 feddans
- 50% for land exceeding 20 feddans
In all cases, the state will claim the most valuable and strategically located portions of the land.
The policy is particularly relevant to areas west of Cairo, including New Sphinx, 6th of October, and the New Zayed expansions, where agricultural land has increasingly been earmarked for residential development.
North Coast Fees Reshape Tourism Projects
Separately, NUCA introduced new development fees targeting Egypt’s prized North Coast, where dozens of high-end tourism and residential projects are under way. The new fee structure will apply to all joint development ventures involving multiple private-sector companies.
Under the updated regulations, developers must pay:
- EGP 500 per square meter for land south of the coastal highway
- EGP 750 per square meter for land north of the highway
- EGP 1,000 per square meter for beachfront land
The North Coast extending over 500 kilometers from Alamein to Salloum along the Mediterranean — includes a vast desert hinterland spanning roughly 160,000 square kilometers. Key development zones include Sidi Heneish, Ras El Hekma, El Dabaa, Ghazala Bay, Sidi Abdel Rahman, and New Alamein.
Contract Changes and Penalties for Non-Compliance
In a further policy update, NUCA will modify future contracts to ensure tighter controls. Under the revised terms, developers will be required to pay 10% of the land’s value if the project is executed or marketed by any developer other than the one who originally signed the contract with the government.
NUCA has also suspended dealings with 47 companies and entities that have failed to regularize their status or pay outstanding fees. Until their financial obligations are resolved, these firms will be denied government services — including access to electricity, water connections, and subdivision approvals.
The list of affected developers includes several prominent names in Egypt’s real estate sector, such as Palm Hills, SODIC, Talaat Moustafa Group, Emaar Misr, Mountain View, La Vista, Al Marasem, Al Ahly Sabbour, and Al Rajhi Group.
These moves come as Egypt seeks to better regulate land use, generate revenue, and tighten oversight in both residential and tourism-led development amid growing demand and infrastructure pressure.
