The Ministry of Housing, Utilities, and Urban Communities has announced the sale of a land plot for the establishment of a social club in New Cairo. The plot covers an area of 15,721 square meters, priced at EGP 13,325 per square meter, with a total value of EGP 209.4 million. The development period is set at 3 years, with a construction allowance of 20% of the total area, subject to specific setback and height regulations (ground floor + two additional floors). Adherence to civil defense requirements and height restrictions is mandatory, and applicants are required to inspect the land before submitting their allocation request.
The remaining balance of the land price is to be paid in six equal semi-annual installments in Egyptian pounds. The first installment is due six months after the date of the down payment. Installments are subject to financial charges based on the interest rate announced by the Central Bank of Egypt, plus 1% as per Ministry of Finance instructions, and 0.5% for administrative fees.
In March 2019, the New Urban Communities Authority approved new regulations to organize the immediate land allocation mechanism, including the requirement to submit a certified check worth 10% of the land value when applying for reservation. Applications are accepted during the first half of each month, and appropriate financial solvency for the project must be presented. The board also decided to amend procedures for offering investment opportunities in new cities.
The text pertains to amendments in the terms of payment for reservation of offered lands. The value is calculated based on the initial announced price by the authority, not the company’s proposed offer. The amendments require that the down payment be made in Egyptian pounds via bank transfer, and companies must include an additional price per square meter in their financial offer. It also allows the possibility of organizing electronic bidding to select the winning offer. Additionally, the text emphasizes the obligation to pay the difference in reservation value if awarded the land. The new reservation percentage ranges from 5% to 10% of the total land value in new cities.