Proposed legislation will assess developers’ financial strength, technical capacity and delivery records while strengthening customer protections.
Egypt is preparing new legislation to regulate the real estate development sector, with proposed rules targeting developer classification, stalled projects and buyer protection.
The initiative follows consultations between Prime Minister Mostafa Madbouly and real estate developers on September 15, 2026.
The proposed law seeks to balance investment promotion with the protection of government interests, developers, homebuyers and other market participants.
Law to Introduce Developer Classification
Ahmed Shalaby, Chairperson of the Housing Committee at Egypt’s House of Representatives, called for clear criteria to assess developers’ financial and technical capacity.
He said the classification system should consider:
- Financial solvency
- Technical capabilities
- Previous project performance
- Ability to meet contractual obligations
- Capacity to complete projects on schedule
Shalaby also urged authorities to distinguish between developers that continue to meet their obligations and those experiencing difficulties with project execution or delivery.
Proposed Developers’ Federation
The draft legislation includes plans to establish an Egyptian Federation of Real Estate Developers.
According to the Housing Ministry, the proposed federation would provide a professional framework for the industry, classify developers, support dispute resolution and strengthen safeguards for customers.
The framework would also include registration requirements, developer records, operating conditions and measures to protect buyers when projects experience delays or defaults.
Government Reviews Stalled Projects
The Egyptian government is compiling information on stalled real estate projects and examining the reasons behind delayed construction and delivery.
Officials said the process aims to protect buyers’ contractual rights while developing solutions for affected projects.
During the September 15 meeting, Madbouly directed developers to review the draft law and submit consolidated feedback before it is presented to the Cabinet and subsequently to Parliament.
Law Seeks Balance Between Buyers and Developers
Shalaby said the new legal framework should protect customers without destabilising the real estate market.
He maintained that projects facing implementation or delivery challenges should be assessed individually, considering the reasons for the difficulties, the nature of each project and the developer’s ability to complete it.
The consultations are expected to continue before the proposed legislation moves to the Cabinet and Parliament.
