The Minister of Housing, Utilities, and Urban Communities has approved a proposal from the Real Estate Development Chamber at the Federation of Egyptian Industries to ease payment terms for North Coast land transfer fees and Desert Road improvement charges. Under the new arrangement, the 20% down payment can now be paid in installments over one year, with the remaining balance spread over five years. This was confirmed by the Chamber’s Chairperson, Tarek Shoukry.
Shoukry also noted that the Ministry has agreed to fix the interest rate on installment payments at 10% for both the North Coast and Desert Road fees, a key request from the Chamber during recent negotiations.
These decisions come after a series of discussions between the Chamber, senior government officials, and major real estate developers. A pivotal meeting was held on 2 September 2025 with Minister Sherif El-Sherbiny, during which several important agreements were reached to address industry concerns. Among the outcomes was a decision to exempt projects that have already been developed from the newly imposed fees. In addition, lands previously sold by the New Urban Communities Authority (NUCA) were also exempted, as their pricing had already factored in infrastructure and road improvement costs.
It was further clarified that agricultural lands designated for building at ratios between 2% and 7% would continue to be governed by agricultural land regulations rather than urban planning rules. To help developers recover from recent disruptions, the Ministry also agreed to grant deadline extensions equivalent to the duration of recent project stoppages.
During the September meeting, the Chamber specifically requested that the initial 20% down payment be payable over a one-year period and that the interest rate on North Coast installments be aligned with the 10% rate applied to Desert Road fees. Both requests were approved.
The Chamber also called for the expedited processing of ministerial decrees and construction licenses for projects that are either not part of joint ventures or have fulfilled their financial obligations. It further recommended that the new fees apply only to undeveloped land, with already completed portions of projects remaining exempt.
The fees in question were introduced for cases where a real estate developer replaces the original entity contracted with NUCA on North Coast lands, with a transfer fee set at EGP 1,000 per square meter. In addition, road improvement charges were introduced for projects along the Desert Road, with fees set at EGP 1,500 per square meter for land up to one kilometer deep, EGP 750 per square meter for land up to three kilometers deep, and EGP 500 per square meter for land extending up to seven kilometers.
According to Shoukry, the approved measures are intended to ease cash flow burdens on developers and support the continuation of projects that have faced delays due to regulatory or economic challenges.
