How off-plan works in Egypt

In Egypt, most new homes in compounds are sold before they are built. Buyers pay the developer in installments over many years, and those payments help fund construction. It works like an interest-free loan from the developer, which is why it is so popular, and also why delays and weak developers are the main risk. Here is how it works and what to check.

The short version

1. You pay a down payment, then installments over 7 to 10 years, sometimes 12 or more.
2. A maintenance deposit is usually charged on top of the price. Check the amount and due date in the contract.
3. Delivery dates often slip. The rules give developers a grace period before buyers can claim.
4. Check the developer, the land (often allocated by NUCA), the approved plan and the contract.
5. Reselling before handover usually means a premium on top of what was paid, plus a developer transfer fee.
6. A new developers law with escrow accounts is in draft, not yet in force.

Payments and plans

Enterprise reported in July 2025 that primary sales typically stretch payments over 7 to 10 years, with some plans reaching 15 years and using bullet payments. Palm Hills launched 12-year plans in early 2025, and developers now often offer two prices: a discount for paying faster, or the list price on a long plan.

Down payments vary widely by developer and launch. Always read the payment schedule line by line: some plans are back-loaded, with larger installments near or after delivery.

The maintenance deposit

On top of the price, compound buyers usually pay a maintenance deposit (wadee’at siyana). The amount and due date are set in each contract. It funds the upkeep of common areas. Egyptian lawyers describe it as a deposit the developer holds for that purpose, ideally in a separate bank account, and misusing it can be a criminal offence. Under the Unified Building Law, owners later form an owners’ union to take over management. Check the percentage in the contract, when it is due, and whether it earns a return.

Delivery and delays

Delays are common. Under Ministerial Resolution 2184 of 2022, as summarised by Andersen, developers had a 12-month grace period after the contract date. If the delay passed 24 months, the buyer could choose to keep paying until delivery or ask for a refund. Enterprise reported in 2026 that a presidential directive set up a committee to inspect delayed projects, and that NUCA gave delayed projects extra time in July and cut some fees. Remedies range from warnings to fines and, in severe cases, taking back the land.

Checking the developer and the land

Many compounds sit on land allocated by the New Urban Communities Authority (NUCA), which runs Egypt’s new cities such as New Cairo, Sheikh Zayed and 6th of October. Before you sell a project, check:

• The developer’s track record of delivered projects, not just launches.
• That the land allocation and the general plan are approved, and the phase you are selling has its permits.
• Whether the developer has delays or disputes with NUCA in the press.
• The contract: delivery date, delay compensation, finishing level, maintenance deposit, transfer fees and cancellation terms.

Resale before handover

An off-plan buyer can usually sell their contract before delivery. The new buyer pays the seller what they have paid so far plus a premium (often called “over” or overpayment), then takes over the remaining installments. The assignment goes through the developer, and many contracts charge a transfer fee, so read that clause first. Resale prices can also fall below launch prices: Enterprise noted in 2025 that resale units could trade up to 30% below primary prices in a slow, cash-only market.

Buyer protections

• Resolution 2184 of 2022 requires developers to put a deposit in a bank account, sized to the project, and to sell only after the plan is approved.
• A draft Real Estate Developers Law, reported in October 2026, would add a separate bank account per project or phase, withdrawals tied to construction progress, buyer protection funds and approval before any marketing. Earlier drafts discussed 30% construction before sales. It is not law yet.

Red flags

• A developer with no delivered projects, or land not yet allocated.
• Payments requested in cash or to a personal account.
• A “reservation” that is not refundable and has no unit number.
• A promised price that is far below the developer’s official price list.
• A contract that does not state the delivery date or delay compensation.

Off-plan rules in Egypt are changing. This guide was checked on the date shown above. CloserPass is not affiliated with any developer or authority.

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