Egyptian authorities are tightening control over the real estate market and ensuring developers fulfill their obligations to buyers, which in the medium term could lead to further consolidation of the development market and support housing prices in projects by large companies.
Egyptian President Abdel Fattah al-Sisi has ordered the creation of a special commission to inspect projects under construction in all provinces of the country. The commission is tasked with monitoring compliance with deadlines for handing over apartments to buyers, the fulfillment of contracts, and the construction of the engineering and utility infrastructure specified in the projects.
The president also ordered that companies which have received buyers’ money but failed to fulfill their obligations be held accountable.
On September 2, Egyptian Prime Minister Mustafa Madbouli held a separate meeting dedicated to regulating the real estate market. The government has been tasked with compiling a complete list of stalled projects, identifying the reasons for missed deadlines, and determining the liability of market participants.
Tighter oversight is part of a broader reform of the Egyptian real estate market. The government is drafting a law to establish the Egyptian Federation of Developers, which is set to become the industry’s sole professional regulator.
It is also proposed to classify developers based on their financial capacity, the scale of their completed projects, and their operational capabilities. The authorities hope this will restrict market access for companies that lack sufficient financial or technical resources.
At the same time, Egypt is discussing the use of escrow accounts for projects under construction. This model provides that buyers’ funds are deposited into a separate bank account for a specific project and may be used primarily for its construction. However, at this time, the mandatory use of escrow accounts across the entire market cannot yet be considered a definitively implemented rule.
Tighter regulation could have several implications for real estate prices.
In the short term, the presidential decree itself is unlikely to lead to a noticeable change in prices. It primarily increases developers’ accountability for contracts already signed and project completion deadlines.
However, if the classification of developers, stricter financial oversight, and additional requirements for the use of buyers’ funds are enshrined in law, the cost of developing new projects may rise. Weaker companies will be forced to raise more equity or bank financing rather than funding construction almost exclusively through pre-sales.
This is particularly important for Egypt, where installment plans offered by developers have become one of the main tools for selling housing. In recent years, down payments on new projects have often been less than 10% of the apartment’s cost, while installment terms have increased to eight to ten years.
According to Knight Frank, the average down payment for residential projects analyzed by the firm was approximately 7.2%, and the average installment period reached 8.5 years. This model allows developers to maintain high sales volumes but simultaneously increases their dependence on a steady inflow of funds from new buyers.
JLL noted in the second quarter of 2026 that Egyptian developers continued to offer more flexible payment plans to maintain housing affordability and ensure cash flow for construction. At the same time, approximately 4,500 new residential units were completed in Cairo during the second quarter, which was lower than in previous quarters.
Under these conditions, stricter requirements may reduce the number of aggressive projects where sales significantly outpace construction. This could lead to a reduction in supply from small developers and a subsequent market concentration around large companies with sufficient capital.
For buyers, the outcome may be twofold. On the one hand, the risk of construction delays and loss of invested funds should decrease. Apartments in projects by large, proven developers may command a price premium precisely because of their reliability.
On the other hand, stricter requirements for capital, banking support, and infrastructure will be factored into the cost of new projects. Therefore, the new rules are more likely to support prices than to drive them down.
The Egyptian market is already experiencing significant price pressure. According to Knight Frank, the average housing price in New Zayed was approximately 102,000 Egyptian pounds per square meter, and in New Cairo—about 85,200 pounds per square meter. In El Sheikh Zayed, prices have risen by approximately 24.7% since January 2024.
Construction costs remain an additional factor. In the first half of 2026, the Egyptian construction sector faced pressure due to inflation, high interest rates, energy costs, imported materials, and the dependence of some expenses on exchange rates.
Therefore, the most likely scenario is not a decline in prices but a shift in the market structure: fewer weak developers, greater oversight of presales, and a further increase in the market share of large companies.
At the same time, price growth may become more uneven. Reliable projects in Cairo, New Cairo, New Zayed, on the North Coast, and in other sought-after locations will be able to maintain a price premium, while troubled projects with delays will find it more difficult to attract buyers solely through deep discounts and extended installment plans.
In the long term, stricter regulation could also be a positive factor for foreign buyers. Increased market transparency, the classification of developers, and oversight of contract compliance reduce one of the main risks of purchasing real estate during the construction phase—the risk of delayed project completion.
Thus, the new measures taken by the Egyptian authorities are unlikely to make housing cheaper. More likely, they will increase market reliability by imposing stricter requirements on developers, which could support the value of high-quality new construction projects and accelerate the exit of financially weak companies from the market.
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