By Wael Hossam El Din

After months of dormancy, Egypt’s House of Representatives has finally approved on April 27 the long-awaited draft law introducing a national property identification system. The legislation, first introduced in August 2023 and shelved shortly after its in-principle approval, is a key step in the government’s push to digitize the country’s vast and often chaotic real estate sector.

The newly passed Property ID Act mandates the assignment of a unique digital ID to every property in Egypt, creating a centralized database that links real estate assets to an integrated, government-run digital platform. The law is designed to modernize how properties are registered, tracked, and regulated, and to bring clarity to a market long plagued by data inconsistencies, fragmented ownership records, and unauthorized construction.

Why Did the House Approve It Now?

The law had faced delays due to funding constraints, as the rollout of such a large-scale digitization program will require significant resources. However, a government official said that the urgency of economic recovery and the desire to boost real estate performance made it imperative to push the law through.

Real estate is one of Egypt’s most valuable assets, and a comprehensive digital inventory is seen as essential for revitalizing the sector and supporting broader economic growth.

Working Methods

Once ratified, each property—whether privately owned, state-owned, or held by legal entities—will receive a digital ID that includes data on its location, use, ownership, licensing status, violations, and transaction history. The ID will be linked to Egypt’s unified digital base map and maintained within a secure spatial information system.

A Prime Ministerial decree will determine which authority will oversee the data system and coordinate the rollout. The Central Agency for Public Mobilization and Statistics (Capmas), the Ministry of Communications and Information Technology, and other relevant bodies will define the system’s structure, develop ID cards or plates, and set mechanisms for updating information as buildings are constructed, demolished, merged, or subdivided.

The ID system will be physical as well as digital. Properties will be issued physical ID cards or plates by the state’s Secure and Smart Documents Complex, which will be installed on each property and considered state-owned assets. Local authorities, including municipal administrations and new urban community authorities, will be responsible for overseeing the placement and maintenance of these ID plates.

To obtain a property ID, owners will need to pay a registration fee, which has not yet been disclosed. A government source indicated the cost would likely be kept affordable to encourage widespread registration.

Tampering with or damaging ID plates is strictly prohibited. Offenders will be required to repair or replace them at their own expense and could face fines of between EGP 5,000 and EGP 30,000 or up to six months in prison if found to have acted deliberately.

The law makes property IDs a prerequisite for registering properties with the real estate registry or notary offices and for applying for utility services like water, electricity, and gas. However, certain properties tied to national security—including those belonging to the presidency, defense and interior ministries, intelligence agencies, and other state-designated bodies—will be exempt from the system.

Systematic Benefits

The new digital ID system promises a wide array of benefits. It aims to resolve deep-rooted issues in the real estate market, such as conflicting records, inefficient coordination among authorities, rampant ownership disputes, and challenges in tracking transactions.

According to the explanatory memorandum attached to the legislation, the system will mirror successful models used in developed countries. It will enhance public service delivery, ensure more precise classification of properties, and help authorities monitor construction violations and enforce licensing regulations. More accurate data would also support fairer assessments of property and wealth taxes.

Utility billing could become more transparent and fair under the system, as charges would be based on actual usage and property types. The availability of centralized, up-to-date data will also improve infrastructure planning and facilitate the connection of properties to essential services.

The government hopes the digital platform will ease property transactions and attract more investment. By enabling citizens to carry out property-related services online, the need for physical visits and manual paperwork would be significantly reduced.

Potential Foreign Investment

The law could be a game-changer for foreign and diaspora investors. Osama Saad El Din, head of the Federation of Egyptian Industries’ (FEI) real estate division, said that the transparency offered by the digital ID system would make Egypt’s real estate market more attractive to foreign buyers. With full digital records accessible through the platform, buyers can verify ownership, usage, and licensing status before making a purchase.

Saad El Din emphasized that such transparency would reduce risks, particularly for buyers from abroad, at a time when local purchasing power is under pressure. Foreigners and Egyptians living abroad would even be able to complete transactions remotely, via their phones, once the law is enacted. Accredited digital marketers would handle requests and, upon clearing security checks, finalize the sales.

House Housing Committee Secretary Amin Massoud echoed these sentiments, stating that a more organized real estate environment could draw in more Arab and international investors. He stressed that construction remains a significant driver of Egypt’s GDP and should be supported by solid data infrastructure.

Challenges to Watch

Despite its promising potential, the implementation of the Property ID system will be a massive undertaking. Sources familiar with the matter said that the rollout could take as long as five years due to the sheer volume of properties and the voluntary nature of registration.

Inventory committees will be established to oversee the process, and dividing the target areas while investing in modern equipment could help speed things up. Still, the task remains complex.

According to Saad El Din, the FEI has been pushing for stronger oversight of the market for over two years. He underscored the need for sequential numbering of newly built units to bring more order to sales and prevent exploitative practices that currently plague the market.

The Road Ahead

The passage of the Property ID Act marks a critical step in the state’s broader strategy to modernize and regulate Egypt’s real estate landscape. With a vast inventory of undocumented and unregistered properties, the task ahead is monumental, but the framework now exists to begin addressing these issues.

The law’s success will hinge on swift and transparent implementation, public buy-in, and adequate funding to scale the project. If implemented effectively, the Property ID system could represent one of the most significant reforms to Egypt’s real estate sector in decades.

As the government moves to appoint the managing authority and finalize the digital platform’s components, all eyes will be on how quickly and efficiently the new system can be operationalized, and whether it will deliver on its ambitious promises to clean up the sector and stimulate new growth.