The share of developers struggling to complete projects in Egypt’s New Administrative Capital has fallen by half over the past two years after a package of incentives offered to developers, according to a source at The Administrative Capital for Urban Development (ACUD) Company, who spoke to Al Manassa.
The proportion of stalled companies now stands at about 15%, down from 30% in 2023, said the source, who is familiar with construction files at ACUD. These companies are behind schedule in delivering their units by varying rates ranging between 30% and 60%.
The source, who requested anonymity, said the number of stalled developers has declined to around 75 companies out of roughly 500 currently operating in the capital, which together own about 600 projects. ACUD maintains continuous communication with these developers to help them reach the required construction rates, the source said.
In November 2023, the number of stalled companies in the New Administrative Capital stood at about 130 out of 400 developers operating in the city at the time. Those firms submitted requests for facilities to help them meet required construction targets for their projects.
The source said ACUD has offered incentives and facilities over the past two years based on each company’s level of delay in meeting construction schedules. These measures included extending project timelines and lengthening grace periods for paying land installment dues.
The company also waived late-payment penalties at varying rates of up to 50% for developers who settled their dues in a single cash payment. It also granted different incentives and bonuses to companies that had completed at least 85% of construction on their projects.
The source added that ACUD continued to support developers to compensate them for losses caused by rising building material prices following the flotation of the Egyptian pound in March 2024, helping companies avoid further delays.
In August 2024, ACUD allowed some developers to increase building heights in their projects—by as much as 10 additional floors in some cases—after previously permitting increases from a single extra floor. The company later confirmed it would not charge fees for the height increases, to compensate developers for price differences between the time of contracting and unit delivery.
