December 24, 2024

NUCA Issues New Regulations on Land Ownership and Development in the Western North Coast

The Real Estate and Commercial Affairs Sector of the New Urban Communities Authority (NUCA) has issued official guidance to the Western North Coast Development Authority, outlining regulations on land ownership and development in Egypt’s Western North Coast region. This guidance follows Presidential Decree No. 361 of 2020 and establishes detailed requirements and procedures to govern acts of disposal, ownership transfers, and project inspections.

Key Provisions

1. Acts of Disposal and Ownership Transfers

Any agreement involving the development of land with a party other than the originally contracted developer, the public announcement of such a change, or any modification to the shareholder structure of the original developer is classified as an act of disposal or a transfer of ownership. These actions are subject to specific transfer fees as stipulated by NUCA.

2. Transfer Fees

Transfer fees are determined as follows:

  • 10% of the adjusted land value at the time of transfer.
  • A minimum fee of EGP 1,000 per square meter applies.
    These fees cover all forms of ownership transfers, including changes in shareholder structures or other acts of disposal.

3. Collection and Coordination of Fees

NUCA’s Real Estate and Commercial Affairs Sector, in coordination with the Western North Coast Development Authority and relevant bodies such as the Notary Public, will oversee the collection of transfer fees.

4. Compliance Requirements and Consequences

  • A 30-day notice period will be granted for payment of transfer fees or submission of a notarized declaration canceling the development agreement or related acts of disposal.
  • During this period, all dealings by the original owner, including licenses, coastal infrastructure approvals, agreements with authorities, ministerial decisions, and utility connections, will be suspended.
  • Non-compliance within the prescribed timeframe may result in the cancellation of the owner’s concession.

5. Inspection and Review of Incomplete Projects

NUCA’s technical inspection teams will inventory projects with completion rates below 15%. These projects will be subject to review, and further action will be determined by relevant NUCA committees based on the findings.

Implications

This guidance reinforces NUCA’s regulatory oversight of land ownership and development in the Western North Coast region. Developers and landowners must carefully adhere to the outlined procedures to avoid significant penalties, including the suspension of licenses and potential revocation of concessions.

For assistance in understanding and complying with these requirements, fee free to contact us.

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