The dispute over land ownership on Egypt’s Northwest Coast is intensifying, as the government threatens to repossess undeveloped plots from real estate developers. This has prompted more than 120 companies to enter urgent negotiations to resolve their legal and administrative status.
Developers are under mounting pressure following the Ministry of Housing, Utilities, and Urban Communities’ decision to temporarily suspend dealings with 74 real estate entities, citing failures to meet allocation conditions and delays in payments.
The crisis deepened when authorities imposed retroactive fees for land transfer and improvement—ranging from EGP 500 to 1,000 per square metre. Developers strongly objected to what they described as an abrupt and uncoordinated move, especially given the challenging economic climate, marked by rising construction costs and significant currency fluctuations.
Meanwhile, inspection committees uncovered multiple cases of land held without proper ownership documents, alongside licensing complications arising from overlapping responsibilities among government entities. In response, the state has moved to centralise land oversight under the New Urban Communities Authority (NUCA). While 162 companies have been formally urged to rectify their legal status, many developers have called for the new fees to apply only to future projects, and for legislative dialogue to reassess the imposed amounts and introduce financial facilitations to ease market disruption.
The Association of Real Estate Developers (arD) is closely following a recent decision issued by the NUCA Board of Directors during session No. 205 of 2025, which allows for the cancellation of land allocations to developers facing outstanding or rescheduled payments, delays in obtaining licences or ministerial approvals, or failure to sign contracts within three months of their last official interaction with the authority.
The Association stressed that the decision has raised serious concerns among companies operating in the sector, particularly given current economic pressures, sharp rises in construction costs, and administrative delays often beyond developers’ control—all of which could slow project completion.
In response, the arD has submitted an official request for an urgent meeting with Sherif El-Sherbiny, Minister of Housing, Utilities, and Urban Communities, to discuss the decision and propose solutions that both protect the state’s rights and support the continuity of real estate projects—key drivers of Egypt’s economy.
The Association also called for the grace period for settling arrears to be extended from three to six months, allowing committed companies to regularise their status and meet financial obligations amid mounting economic pressures on the real estate sector.
While affirming developers’ full commitment to the state’s urban development plans and to upholding market discipline, the arD urged the adoption of more balanced policies that take into account current economic challenges, helping ensure the continuation of projects and protecting the country’s sustainable development agenda—a central pillar of Egypt’s economic vision.
The Association noted it has been the only entity actively working to engage all relevant stakeholders since the start of the crisis. It warned that enforcing the decision without adequate notice for companies to address compliance issues could harm the investment climate and undermine investor confidence—both domestic and international—in Egypt’s real estate market.
