Egypt has slashed interest rates on land installment payments for real estate developers to 12–15% for one year, aiming to free up to 15 billion Egyptian pounds ($285.71 million) in liquidity to accelerate stalled construction work and meet delivery deadlines.
The Cabinet decision, approved Thursday, comes amid mounting pressure on property developers following severe currency devaluations and rising building costs that have led to widespread project delays and customer complaints.
An official at the New Urban Communities Authority (NUCA) told Al Manassa that total installments due over the next 12 months range between 400 billion and 500 billion pounds ($7.62 billion to $9.52 billion) for land purchases in new cities.
The official, speaking on condition of anonymity, said NUCA will instruct developers to reinvest the 12 to 15 billion pound ($228.57 million to $285.71 million) savings into active construction to speed up unit handovers to buyers.
The rate reduction applies to real estate, agricultural, and tourism projects across new cities and state land agencies, overriding a late-2024 decision that had locked installment interest at 15% through May 2026.
The financial relief follows presidential directives issued this month by President Abdel Fattah El-Sisi establishing an inspection committee to audit active real estate projects nationwide, enforce delivery timelines, and hold non-compliant developers accountable.
Property developers in Egypt have faced severe financial strain over recent years after the Egyptian pound lost more than 60% of its value following the March 2024 currency floatation, sharply driving up construction and material costs.
The interest rate cut aims to ease financing burdens on developers whose land purchase schedules typically span three to five years, with land installments representing a major financial obligation.
The measure also follows a recent report by Al Manassa highlighting the plight of home buyers facing uncertain fates as developers miss delivery dates despite receiving regular installment payments.
NUCA, established in 1979, has historically sold state land to developers through installment frameworks requiring an initial down payment of around 10%, according to the Built Environment Observatory research group.
