Egypt reduces fees for real estate partnership projects on the North Coast by about 50%
Egypt has reduced fees imposed on real estate partnership projects on the North Coast, after amending the calculation method to apply them to the saleable built-up area instead of the total land area. This reduces the fees borne by developers by approximately 48% to 50%, according to government sources who spoke to Asharq.
The sources added to Asharq that the fees, after the amendment, will be calculated based on the "building footprint," meaning the area actually built within the project, in addition to the sold gardens. These areas typically represent about 48% to 50% of the total land area.
The amended calculation method applies to foreign developers who are required to pay the fees in dollars, as well as to Egyptian developers who received ministerial allocation decrees for projects before February 2024. A ministerial allocation decree is an official approval issued by the Ministry of Housing through the New Urban Communities Authority, granting the developer the right to allocate the land and establish the project according to specific requirements. It is a prerequisite for commencing construction.
The decision applies to Egyptian and foreign developers who received ministerial allocation decrees for projects before February 2024.
For new projects, fees are calculated on the entire land area at a rate of 1,000 Egyptian pounds per square meter.