Minister of Housing Addresses Dual Pricing Crisis for Urban Community Lands

In his first direct response to the crisis of dual pricing for Urban Community Authority lands—initial and final pricing—a situation,” Minister of Housing Sheref El Sherbini confirmed to the publication that the prices are final and that the issue has been “corrected.”

The Minister did not comment on the situation of the companies affected by this dual pricing decision, leaving the question of whether adjustments would be made for them unresolved. This practice, which is legally questionable, contradicts the law on auctions, which mandates transparency and clarity.

On Sunday, the Urban Communities Authority did indeed publish a list of the available lands on its website with final prices, amending the previous approach of using initial prices.

Despite this correction, companies that were subjected to dual pricing are still uncertain about their situation. Several real estate development companies, which had land allocated to them through the Urban Communities Authority under the dual pricing scheme, reported facing financial demands amounting to millions of Egyptian pounds. These new charges were calculated based on the dual pricing decision, and companies have been told they must pay or risk having their lands reclaimed.

The Real Estate Development Chamber, headed by Eng. Tarek Shoukry, announced in an official statement that the Ministry of Housing had resolved the dual pricing issue. Minister Sheref El Sherbini is currently reviewing the cases of the companies that were affected by this decision.

According to sources, about 12 developers have been affected by this dual pricing scheme.

Since the crisis emerged, and despite various business organizations addressing it, the Ministry of Housing has remained silent, neither commenting nor issuing any official statements about new land pricing decisions or the status of companies that acquired land under the dual pricing system. This silence persists despite the decision’s potentially severe impact on investment.

The Real Estate Development Chamber’s statement emphasized that, according to a meeting between Tarek Shoukry and Minister El Sherbini, the Minister has directed that a fixed price be set for lands at the start of the bidding process, putting an end to the controversy over dual pricing.

However, companies still face financial demands that threaten the potential withdrawal of their lands, despite their full payment according to the auction contracts.

In an unprecedented move, the Urban Communities Authority had offered lands based on initial pricing estimates, followed by final pricing, a practice that undermines investment and could negatively affect any future expansions or new investments.

Under these new rules—approved by the Board of Directors of the Urban Communities Authority, which includes the Ministers of Housing and Investment—land is auctioned based on an initial estimated price, the highest bid is selected, and the largest down payment is required. The bid is then submitted to the Board of Directors for approval. Once the investor makes the required payment, the Authority reassesses the price and notifies the investor of any additional payments. The rules and conditions state that “the remaining amount of the land’s value is to be paid in Egyptian pounds… based on the final price approved by the main real estate committee.