The House gave its final approval to a draft law yesterday that would assign properties a unique digital ID on a centralized government database, nearly a year and a half after it was first introduced. The bill was approved by the government and referred to the House back in August 2023, where it received in-principle approval before being shelved.

Since real estate is one of Egypt’s most valuable assets, the government is moving to fast-track the act, according to the memorandum’s explanatory note seen by EnterpriseAM. The legislation aims to accurately document and regulate Egypt’s vast real estate holdings, much of which remains unmapped due to a lack of precise data, a government official told EnterpriseAM.

Why wait until now? Funding constraints had delayed the rollout, which will be costly, the official said, adding that a comprehensive inventory would help boost the sector’s performance and support broader economic growth.

THE MECHANICS OF THE NEW SYSTEM-

Once the act is ratified, each property will receive a unique digital ID linked to a new platform detailing its location, use, ownership, licensing status, violations, and transaction history. The database will be integrated across key authorities, including the real estate registry, utilities providers, local municipalities, the Justice Ministry, and the survey authority.

The digital ID will be matched to the coordinates and codes of Egypt’s unified base map — a standardized digital map of the country — within a secure government-run spatial information system. The Prime Minister will appoint the authority tasked with managing the system’s spatial and textual data and overseeing the ID numbers’ rollout and upkeep.

Who will set it up? State statistics agency Capmas, alongside the CIT Ministry and other authorities, will set the framework for the property ID system, including defining its components, creating digital ID cards or plates, and establishing update mechanisms to track construction, demolition, subdivisions, and mergers.

Each property will have a requisite physical ID card: The state’s Secure and Smart Documents Complex will issue physical ID cards or plates linked to each property’s unique digital ID number, which will be physically installed on the property. Local administration units, new urban communities’ authorities, or other governing bodies — depending on the case — will oversee the delivery or placement of the IDs, which will remain state-owned assets that cannot be tampered with or altered, except by authorized officials.

Property owners will need to pay a registration fee — still to be determined — to list their assets on the new digital platform and obtain the property ID, a source told EnterpriseAM, adding that the cost will likely be kept low to encourage people to register.

Those who damage or tamper with a property ID card must repair or replace it at their own expense and face fines ranging between EGP 5k and EGP 30k or prison time of up to six months if proven that the damage done was deliberate.

The law will apply to properties owned by individuals, state-owned assets, legal entities, and public service or utility providers. The ID will be mandatory for registering properties with the real estate registry or notary offices and for applying for basic utility services.

But every rule has exceptions. Properties deemed strategic or vital to national security will not be included in the system — this includes assets affiliated with the presidency, the defense and interior ministries, the General Intelligence Service, the Administrative Control Authority, and any other entities designated by a cabinet decision.

THE CONCRETE BENEFITS OF THE NEW SYSTEM-

The ID system is expected to help real estate owners overcome the decades-long real estate challenges we’re all intimately aware of, including conflicting ownership records, poor inter-authority coordination, frequent ownership disputes, and difficulties in tracking transactions and inventorying public and private properties, the memorandum read. The system would be modeled after those in developed nations, and would help the state better deliver services and infrastructure to properties, it added.

The memorandum outlines a slew of benefits the property ID system is expected to deliver, particularly in data accuracy and regulatory oversight. Authorities would be able to more accurately measure and classify different properties, set building and licensing standards, and monitor violations tied to individual properties. The system would also support fairer property and wealth tax assessments and allow utilities to be billed based on actual usage and property type.

Easier property registration could unlock further growth for the real estate market. Centralized data would help better plan infrastructure upgrades and connect properties to nearby services and facilities. Citizens would be able to handle property-related transactions through e-government platforms, limiting the need for direct dealings with service providers.

A WAY TO FURTHER ATTRACT FOREIGN BUYERS-

The system will allow foreign buyers to easily access complete property records through the new platform, making the buying and selling process more transparent and less risky, Federation of Egyptian Industries’ (FEI) real estate division head Osama Saad El Din told EnterpriseAM. Increased foreign purchasing activity would help stimulate the real estate sector, particularly as Egyptians’ purchasing power continues to decline.

A more organized, less chaotic real estate market would help draw in more Arab and foreign investors, House Housing Committee Secretary Amin Massoud told EnterpriseAM, noting that the construction sector remains a major contributor to Egypt’s GDP.

Egyptians abroad and foreigners will be able to complete real estate transactions entirely over the phone once the bill is law, Saad El Din noted. Accredited digital marketers would assist buyers on the platform, placing requests, and once security checks are cleared, the transactions would be finalized.

THE CHALLENGES-

The speed at which implementation is expected to roll out remains one of the biggest hurdles, our sources said. With voluntary registrations and inventory committees responsible for driving the process, implementation could take up to five years to complete, Saad El Din said, adding that dividing target areas and investing in advanced equipment would help accelerate the process.

The move has been long overdue, according to some, including the FEI’s real estate division, which has been pushing for tighter oversight of the market for more than two years, Saad El Din said, calling for sequential numbering of new units to streamline sales and curb harmful market practices.

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