• What: Madbouly’s government recently imposed a fee on land owned by developers ranging between Remaya Square and Egypt’s North Coast, and developers are fuming about it.
  
  

  The committee responsible for observing and facilitating these acts is the New Urban Communities Authority. The fees are as follows:

• EGP 500 per sqm for land located 3–7 km back from the highway
• EGP 750 per sqm for land located 1–3 km back from the highway
• EGP 1,500 per sqm for land located within 1 km of the highway

The government is also considering imposing a 10% transfer fee if a landowner sells the land to a developer.

The government gave developers a three-month deadline to comply, warning that if they don’t respond or follow the new rules, they could lose the right to the land.

• So what: Real estate developers listed on the EGX could face significant consequences as a result of the newly imposed land fees. Major players such as Emaar Misr, SODIC, Talaat Moustafa Group, and Palm Hills Development are among the companies likely to be affected.

These newly imposed fees could have an impact on company valuations. By increasing costs, they may cause developers to raise unit prices, potentially affecting demand, sales, and profit margins.

Around the time of the announcement a week ago, the stock prices of the 4 companies began to decline.

This drop may have triggered panic among investors, sparking concerns about rising financial pressure on real estate firms and market instability.