Gov’t raises industrial land prices again as it widens payment and tenure options

Industrial land is getting pricier again. The government is raising prices for plots allocated to investors while expanding payment and tenure options to include ownership, usufruct, and lease-to-own, according to an official decision seen by EnterpriseAM. The increases shown in the new tariff table are generally lower than the 10-250% hikes approved last September, while discounted pricing remains in place for unserviced plots and areas targeted for industrial investment.

The tariff table fills in the missing piece of the FY 2026/27 industrial-land framework we looked at earlier this month, when the government set the rules through June 2027 without publishing the governorate-specific prices. In New Cairo, land now costs EGP 6,435 per sqm, up 10% from EGP 5,850, while youth workshop plots rose by the same percentage to EGP 7,095 from EGP 6,450.

The price map:

• Cairo: Qatameya, the priciest location, is EGP 8,520 per sqm for ownership and EGP 430 under usufruct. Badr is EGP 3,695 for ownership and EGP 185 for usufruct, with other plots at EGP 2,180. In 15th of May City, industrial land is EGP 3,165-3,180, youth workshops EGP 2,180-2,545, and usufruct EGP 110-130. Shorouk is EGP 3,695 for ownership and EGP 135 under usufruct.
• Giza: 6th of October industrial land is EGP 3,220 per sqm and youth workshops cost EGP 3,355. New October is EGP 3,270, Abu Rawash EGP 4,000, and Arab Abu Saed EGP 3,450.
• Main hubs: 10th of Ramadan is EGP 3,300 for ownership and EGP 165 under usufruct, while youth workshops there cost EGP 3,695 for ownership and EGP 185 under usufruct. New Borg El Arab is EGP 2,440 for industrial land and EGP 2,550 for youth workshops. New Alamein is EGP 2,965 for industrial land and EGP 3,570 for youth workshops.

Upper Egypt and other targeted investment areas continue to carry lower price tags:

• Fayoum: New Fayoum is EGP 2,200 per sqm and EGP 2,420 for youth workshops; Kom Oshim is EGP 2,250. Unserviced North Fayoum plots cost EGP 100 for ownership and EGP 5 under usufruct.
• Beni Suef: New Beni Suef rose to EGP 2,245 from EGP 2,040; New Fashn is EGP 2,160; and Kom Abu Radi and Bayad Al Arab are EGP 1,890. Unserviced plots cost EGP 40 for ownership or EGP 2 under usufruct.
• Minya: New Minya rose 7.5% to EGP 1,720 from EGP 1,600, with youth workshops costing EGP 2,025.

Two paths to ownership

Investors buying their plots outright can choose between two payment tracks:

• Standard track: A 25% down payment, with the balance spread across three equal annual installments at 12% interest. Investors have three years from receiving the plot to complete the project and obtain an operating license and industrial registration.
• Eased track: A 10% down payment, with the balance paid in equal quarterly installments over four years at 12% interest, with a two-year grace period to complete the project and obtain an operating license and industrial registration.

Legacy investors who already paid 25% can apply to the Industrial Development Authority to shift to the eased track, with the extra 15% deducted from subsequent installments.

Usufruct gets a route to ownership

Investors can opt for usufruct at an annual rate of 5% of the ownership price, rising cumulatively by 10% annually from year two and subject to revaluation every seven years. Agreements can run for up to 50 years and be renewed while the industrial activity continues and the investor demonstrates operational commitment. Investors can apply to buy after one year once they demonstrate seriousness and obtain an operating license and industrial registration. The land is repriced when ownership is approved, with prior usufruct payments deducted. Under last September’s framework, investors had to operate for at least three years before making the switch.

Lease-to-own is also on the menu, following the system rolled out earlier this month to reduce the capital manufacturers tie up in land before production begins. Annual rent starts at 5% of the ownership price and rises cumulatively by 10% annually from year two, with terms of seven to 21 years. Investors can purchase during the lease after meeting performance criteria and demonstrating good financial and compliance standing. They must pay or top up payments to at least 25% of the land value at the approved purchase price, then pay the balance over three equal annual installments plus applicable interest.

Separate track for industrial

Industrial developers will put down 25% at signing and get a one-year grace period before paying the balance over three annual installments carrying 12% interest. When developers resell industrial plots to manufacturers in installments, they will also be barred from charging interest above 12%. The enforcement side is tougher: across the payment systems, the landholding authority can terminate a contract after an investor misses two consecutive installments, subject to the rules governing the authority.

IN CONTEXT- The new tariff table completes a broader industrial-land reset that has unfolded over the past few weeks. The government locked in the FY 2026/27 allocation framework earlier this month while leaving the prices undisclosed after rolling out lease-to-own to lower upfront capital requirements. It has simultaneously tightened the pressure on holders to actually put plots to work, giving some delayed projects up to 18 additional months to finish construction while putting repeat defaulters on one final three-month clock before their land can be reclaimed.

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