Real estate developers are pushing back on new fees on land on the Cairo-Alex Desert Road, North Coast: The Madbouly government has imposed a new levy on land owned by developers on the Cairo-Alexandria Desert Highway and North Coast, according to documents seen by EnterpriseAM. A source in government separately confirmed the levy had been imposed, adding that developers have been sent notices to pay.

The details: The fees include an “improvement fee” that requires developers who own land or projects going back up to 7km on either side of the Desert Road to pay a new levy to the state’s coffers. The area in question stretches from Remaya Square to the Alexandria gates. The levy is priced as follows:

  • EGP 500 per sqm for land between 3-7 km back from the highway;
  • EGP 750 per sqm for land between 1-3 km back from the highway;
  • EGP 1.5k per sqm for land that stretches 1 km back from the highway.

What about developers in the North Coast? The New Urban Communities Authority is also looking to impose a new, 10% transfer fee on North Coast projects in the event that the land owner is not the real estate developer, with a maximum of EGP 1k per sqm. The fees will be calculated based on current assessed land value, not the price at the time of purchase or contracting.

The authority is also taking steps to reclaim land from non-compliant developers — and has already begun with the North Coast area. A three-month grace period is granted to developers to obtain the required construction licenses; otherwise, land risks will be withdrawn.

Real estate developers are pushing back: The measures, if implemented, would add pressure on developers, especially with the new fees on Cairo-Alexandria land impacting projects which have already been fully developed and sold years ago. Charging fees based on today’s prices — without accounting for the original purchase cost — could trigger serious funding challenges, especially given the current economic difficulties facing the sector, head of the Egyptian Real Estate Council Ahmed Shalaby told EnterpriseAM.

A clear framework could ease market tensions: “We fully support the state’s right to regulate the real estate market,” Shalaby said, adding that “the new fees imposed on companies represent significant challenges.” He called for the need for a clear and practical framework “to ensure smooth implementation without negatively impacting existing investments or destabilizing the real estate sector,” and that no decision should be retroactively applied to delivered projects.

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