Egypt Tests Developers’ Appetite for Green Projects with Six-Month Incentive Package
For the first time, the Egyptian government is testing the appetite of real estate developers for sustainable construction through a six-month package of financial incentives designed to promote green building practices, according to Abdel Khalek Ibrahim, Assistant Minister of Housing.
The new incentives, effective from today for an initial six months—with the possibility of a one-year extension depending on developer response—aim to encourage investment in environmentally friendly real estate projects and align with Egypt’s sustainable development goals.
Incentives for Green Building Projects
Under the new scheme, developers will benefit from reduced fees and administrative costs ranging between 5% and 25%, in addition to an increase in land utilization ratios by 10–15% above the original levels. The proportion of land designated for public services will also rise by 1–2%, offering more flexibility in project design.
To further support developers, the government will grant extensions of six to twelve months for project implementation and land payment schedules. Developers will also enjoy interest rate reductions of 1–3% on land installment payments.
These measures come as Egypt intensifies its efforts to optimize resource use, conserve energy and water, and reduce carbon emissions—key objectives in the country’s broader green transformation strategy.
Developers React to the Green Push
Tamer Nasser, CEO of City Edge Developments, described the government’s focus on incentivizing sustainable, integrated urban projects as a “significant step forward” in advancing Egypt’s green building agenda.
He added that the current incentive package is sufficient to motivate private developers to participate in this shift, helping to reshape Egypt’s urban landscape and translate green construction from a concept into tangible reality.
Nasser revealed that City Edge is currently studying the application of sustainable development standards in one of its upcoming projects, with plans to expand the model if it proves successful. While acknowledging that the higher costs of green construction remain a challenge, he noted that the government has eased this burden by offering lower interest rates on loans for eco-friendly projects and streamlining approval procedures.
Echoing this view, Tarek Shoukry, Chairman of the Real Estate Development Chamber at the Federation of Egyptian Industries, praised the initiative as a catalyst for the green building movement. He emphasized that increasing land utilization ratios will help developers offset part of the additional costs of sustainable construction.
Shoukry also revealed plans for an upcoming meeting between developers and the Ministry of Housing to present Egypt’s National Green Building Strategy, which seeks to encourage greater adoption of sustainable practices and maximize the benefits of the new incentive framework.
Part of Egypt’s National Green Building Strategy
The green incentive plan forms a key component of Egypt’s National Strategy for Green Cities, currently being developed in collaboration with government institutions, private sector stakeholders, civil society, and industry experts.
The strategy aims to unify national efforts toward integrating economic, social, and environmental dimensions in the country’s real estate and urban development sectors—positioning Egypt as a regional leader in sustainable construction and low-carbon urban growth.