Egypt’s New Urban Communities Authority has suspended enforcement of land reclamation decisions in the North Coast, following lobbying from dozens of real estate developers, according to a person familiar with the matter.
The freeze affects plots deemed in violation of land allocation contracts, primarily in the high-value North West Coast area, where the state has aggressively sought to enforce development timelines and usage terms.
The government is now reviewing alternative enforcement tools after the Housing Ministry instructed the authority to avoid seizing land unless absolutely necessary, the source told Al Manassa, requesting anonymity to discuss the matter.
The pause follows complaints submitted by investors to the Cabinet challenging the land withdrawal decisions, which investors argue are damaging to market stability and confidence.
In July, 123 real estate companies entered negotiations with the authority to regularize the legal status of their land holdings in the area. Soon after, the authority rescinded five land allocations due to noncompliance with contract terms, sparking backlash from developers.
On Aug. 6, the authority reversed some withdrawal decisions temporarily after procedural flaws came to light. Several landowners had not received formal warnings before the seizures, a violation of due process, a separate source previously told Al Manassa.
The government is now considering a tiered penalty system, the source said, which could include financial fines tied to the severity of violations. Persistent noncompliance would escalate to administrative sanctions, with revocation of land ownership as a final step.
This week, the authority began collecting reconciliation fees from five landowners to resolve disputes and avoid further seizures, the source added.
