Egypt’s New Urban Communities Authority (NUCA), affiliated with the Ministry of Housing, Utilities and Urban Communities, has introduced new development fees on real estate and tourism projects in the North Coast that are implemented through partnership models between multiple entities. The fees will reach up to EGP 1,000 per sqm depending on the location of the project, Invest-Gate reports.
Under the new framework, NUCA will impose EGP 500 per sqm on land located south of the coastal highway, EGP 750 per sqm on land to the north of the highway, and EGP 1,000 per sqm on seafront plots. The new regulations are aimed at standardizing revenue from high-value coastal projects and ensuring fair contributions from developers operating under joint-venture arrangements.
NUCA will also amend future land contracts in the North Coast to include a clause requiring developers to pay 10% of the land’s value if the project is executed or marketed by entities other than the original contracting party. The measure aims to regulate the increasing number of partnerships and sub-developers operating in the region and to ensure clearer accountability in project implementation.
In a related step, NUCA has suspended dealings with 47 companies and entities until they regularize their legal and financial status by paying outstanding fees. Services such as electricity and water connections, as well as subdivision approvals, will be halted for these companies until all financial obligations are met.
Among the companies that received formal notifications are some of Egypt’s largest developers, including Palm Hills, SODIC, Tatweer Misr, Al Ahly Sabbour, Al Rajhi, Emaar Misr, Mountain View, AlMarasem Development, and La Vista Developments. These developers are active players in high-end residential and tourism projects along Egypt’s Mediterranean coastline.
The North Coast, stretching approximately 500 km from Alamein to Salloum, includes a desert hinterland extending over 280 km inland, with a total area of around 160,000 square kilometers. It encompasses six main development zones: Sidi Heneish, Ras El Hekma, El Dabaa, Ghazala Bay, Sidi Abdelrahman, and Alamein, all of which are undergoing large-scale urban and tourism development.