Egypt's government is writing a law to regulate property developers and protect people who buy before a home is built. It would put each project's money in its own bank account and release it as building progresses. As of 21 October 2026 it is a draft. The cabinet has not sent it to parliament, so none of it binds a developer yet. A 2022 decree already covers some of the same ground, and those rules are what you can check today.
The facts below were checked on 21 October 2026. Confirm your own contract with a lawyer.
What the draft proposes
The housing ministry is preparing a law to set up a General Union of Real Estate Developers, with the Real Estate Development Chamber, Ahram Weekly reported on 20 October. According to the draft as reported:
- Each project or phase gets its own escrow bank account, and money is paid out "linked to the construction schedule and completion rates".
- The union would classify developers and approve projects.
- A company would need a residential project of at least five feddans to count as a developer.
At the Osoul Masr forum on 18 October, Housing Minister Randa El-Menshawy said the government is working toward a full set of rules for the sector (Daily News Egypt). The measures she described include:
- A separate bank account for each project, and projects split into phases with set schedules.
- No advertising or selling units before the required approvals and permits.
- If delivery is more than 12 months late, installments are put off until handover.
- Developers who fail to finish projects would not count as qualified, and would get no new approvals.
Where it stands
The draft "remains at the preparation stage", Ahram Weekly reported. President Abdel Fattah El-Sisi directed the work in August. In early September the ministry said the draft was nearly done, and in mid-September Prime Minister Mostafa Madbouly said it had gone to developers for comments. Parliament's housing committee has asked for it without delay. No date has been given for sending it to parliament.
Not everyone agrees on the details. Developers warn that tying payouts to building progress could squeeze their cash. Legal expert Mohamed Saad Radwan said the draft looks at future projects and leaves out buyers already hurt in existing ones, and legal experts and consumer advocates want a standard contract for all sales (Ahram Weekly).
Some developers want more. Alaa Fekry, chair of Beta Egypt, proposed an independent regulator and escrow brought in step by step, and Tarek Eid of the Arab Kuwaiti Group called for each project to be licensed before any sales, pointing to Dubai, Saudi Arabia and the UK as models (Daily News Egypt, 11 October).
The rules that already apply
Prime Minister's Decree 2184 of 2022, issued in June 2022, set rules for selling units in development projects and requires them in the contracts state land bodies sign with developers (Masrawy, Riad & Riad). Under it:
- A developer may not advertise units before a ministerial decree approves the project's general plan, and the detailed plan of the phase being sold.
- To sell a new phase, the developer must be on schedule with the previous one.
- Each project or phase has its own bank account for all its income and spending.
- The developer deposits a guarantee in that account before selling, from 20% of the phase's building cost for the smallest projects down to 3% for the largest.
- 5% of what buyers pay is held back to cover refunds.
- The developer gets 12 months past the contract delivery date. After that, installments are put off. After 24 months late, the buyer can keep waiting or ask for a refund within three months.
- A developer who breaks the rules gets six months to fix it. If not, sales approvals for the next phase are suspended and the violation is made public.
Several of the minister's proposals, such as the separate account, no sales before approvals and putting off installments when delivery is late, are already in this decree. The draft law would put them in a law and add a regulator.
Most homes on WiserChat are off-plan
On 21 October 2026, 32,380 of the 33,265 homes for sale on WiserChat with a known delivery date, 97%, had not been delivered yet. More than half, 18,805, deliver more than three years from now. For most buyers, these rules are about the home they are buying.
What to check before you buy off-plan
- Ask for the ministerial decree approving the project's plan, and for the phase you are buying in. Advertising before it is not allowed.
- Ask which bank account your payments go into. Under the 2022 decree each project or phase has its own.
- Read the delivery date and the delay clauses in the contract. Compare them with the 12- and 24-month rules above.
- Look at the developer's record on earlier phases and projects. A developer behind on one phase is not allowed to sell the next.
- Add up the whole plan: down payment, installments, maintenance deposit and anything due at handover. How to compare payment plans in Egypt shows how.
- Have a lawyer read the contract before you sign.
If the draft becomes law, these checks may change. Until then, the 2022 decree and your contract are what protect you.
Ask Wiser about your case
Wiser, the consultant inside WiserChat, covers more than 700 projects with their prices, payment plans and delivery dates and can run the numbers for you. Tell it your budget, the area you want and when you need to move in, and it will show you the projects that fit side by side. It's free for buyers. Ask Wiser about your case.