The Ministry of Housing, Utilities, and Urban Communities and the Real Estate Development Chamber at the Federation of Egyptian Industries have reached a settlement to resolve long-standing disputes over North Coast land fees and desert road improvement levies. Tarek Shoukry, Chairperson of the Chamber, said the agreement underscores the government's commitment to supporting serious investors and expediting development while safeguarding state dues. Shoukry noted that reputable developers fully support the state's right to accelerate urban growth, prevent land hoarding, and collect fair contributions for infrastructure upgrades, particularly road improvements that have significantly boosted the appeal of real estate projects. The settlement followed a series of consultations with leading developers, most recently on 2 September 2025, during a meeting between Housing Minister Sherif El-Sherbiny and Chamber representatives. Desert Road levies Under the deal, completed projects and lands sold directly by the New Urban Communities Authority (NUCA) will be exempt from road improvement levies, as these costs were already factored into their original pricing. Agricultural lands earmarked for limited construction will continue to be governed by agricultural regulations rather than urban planning rules. To ease financial strains on developers, the Ministry is considering extending grace periods for delayed projects and studying a proposal to allow the first payment to be spread over a full year. North Coast land fees For the North Coast, developers requested that interest rates on dues be fixed at 10%, mirroring the terms applied to Desert Road settlements. It was also agreed that ministerial decrees and permits would be issued immediately for projects outside joint ventures or those already committed to payment schedules. Only undeveloped plots will remain subject to fees, while developed areas will be exempt. Shoukry stressed that the outcomes would restore stability to the sector, encourage new investments, and accelerate progress on ongoing projects. Meanwhile, NUCA confirmed the introduction of new development fees for North Coast real estate and tourism ventures undertaken through multi-party partnerships. According to Invest-Gate, fees will range up to EGP 1,000 per square metre, depending on location: EGP 500 per sqm for land south of the Coastal Highway, EGP 750 per sqm for land north of the highway, and EGP 1,000 per sqm for seafront plots. The new framework is designed to standardise revenues from high-value coastal projects and ensure equitable contributions from developers. Future contracts will also include a clause obliging developers to pay 10% of the land's value if projects are implemented or marketed by entities other than the original contracting party. This measure aims to regulate the growing number of partnerships and sub-developers on the North Coast and strengthen accountability in project delivery.
