Egypt’s urban planning authority has launched an abrupt clampdown on developers in the North Coast, enforcing land allocation rules to the letter in a move that has left many investors blind sided.
The New Urban Communities Authority (NUCA), part of the Housing Ministry, has begun applying land ownership terms strictly, resulting in threats to revoke parcels from companies over missed payments or licensing delays, three landowners told Al Manassa.
The timing has surprised developers, who argue that the government had previously shown leniency in light of Egypt’s economic challenges and soaring construction costs.
“This was deliberate,” said the CEO of one real estate firm with land in the western North Coast. “They’re trying to take back land under the guise of legal enforcement, then resell it at today’s higher market prices.”
In July, 123 developers had entered talks with NUCA to formalize land ownership in the region, following a Cabinet decision to reevaluate and reorganize North Coast land use.
The Real Estate Developers Association submitted a formal request last month for an urgent meeting with Minister of Housing, Utilities, and Urban Communities Sherif El-Sherbiny. During the meeting they objected to NUCA’s decision to cancel land allocations if developers missed payments, delayed licensing, or rescheduled dues, seeking instead a compromise that would both preserve state interests and allow projects to continue.
Sources involved in the talks said NUCA officials had long acknowledged the industry’s challenges during both private and public meetings, especially liquidity shortages and rising building material costs.
The price of cement, for instance, surged earlier this year, prompting the Egyptian Competition Authority to temporarily lift a production cap for two months. When manufacturers failed to stabilize prices, the suspension was extended indefinitely.
Yet, in recent weeks, NUCA began issuing fines and withdrawal notices without warning. “We’ve been repeatedly told they understood our predicament,” said the managing director of a second firm. “Now they pretend their hands are tied.”
Tensions escalated after the authority threatened to revoke land from companies that had yet to complete development, some of which had delayed construction due to sharp inflation and the delayed approval of building permits.
“This unpredictability is dangerous,” said a third source, deputy CEO of another property firm. “Developers, especially foreign investors, need policy clarity. Sudden fees and land seizures destroy investor confidence.”
NUCA walked back some of its decisions this month after legal advisors flagged procedural errors, including failing to issue a prior warning before land was reclaimed.
But uncertainty remains. In a new twist, NUCA introduced steep fees retroactively. Foreign-backed developments must now pay $20 per square meter upfront. Egyptian developers were hit with a fixed rate of 1,000 Egyptian pounds per square meter, with 20% due immediately and the rest over five years at Egypt’s central bank interest rate, currently hovering around 24–25%.
Proceeds from the new charges will reportedly be funneled into the Tahya Misr sovereign fund.
