The government is looking to collect nearly 500 billion Egyptian pounds (almost $10 billion) from regularizing the status of 102,000 feddans whose land use was converted from agricultural to residential within six new cities in Cairo Governorate. Roughly 60% of that target has already been collected, according to a source familiar with the land regularization file at the Ministry of Housing who spoke to Al Manassa.
The expansion of regularization fee collection comes as part of the government’s drive to increase non-tax revenues, at a time when the new fiscal year’s state budget aims to raise total revenues to around 4.1 trillion pounds (around $82 billion).
On Saturday, the Ministry of Housing and New Urban Communities announced that it had received 122,000 applications to legalize the status of 102,000 feddans (428 square kilometers) in six new cities, including New Obour and El Shorouk, without providing further details.
The source, who requested anonymity because they were not authorized to speak to the media, said the regularization process began between five and seven years ago, depending on the area. Collection of the required payments starts only after applications and supporting documents have been completed, with installment plans available for varying periods depending on each case.
The source explained that New Obour, for example, received tens of thousands of applications to legalize the status of around 11,000 feddans in the Qadisiyah and Al Amal areas starting in 2021. However, the collection of regularization fees only began about two years ago, after applicants completed the required documentation and obtained the necessary financial and administrative approvals.
As of June, the Ministry of Housing had allocated 1,187 land plots through four public lotteries to citizens who had completed the status legalization process in New Obour City.
The source added that the ministry allows applicants to pay legalization fees either in cash or in kind. Under the cash payment system, and in the Qadisiyah area for example, fees range between 500–1,000 pounds per square meter (about $10–20). Applicants can pay either in installments or in a single payment, with the latter earning a discount of up to 25% of the total amount due.
Under the in-kind payment system, landowners cede 50% of the land area to the state in exchange for the implementation of urban planning and the provision of utility networks, roads, and infrastructure. The source noted that the amount due and the payment mechanism vary according to the location of each plot and the nature of the application.
