You are about to buy a new property in Egypt, but someone murmurs, “Did you ask about the property maintenance fees?” Some people call them service charges for buying any property, so did you calculate your charges?
No worries, this article is all about the maintenance and service charges. We will break it down so you can grasp its full essence, make sure you made your calculations, and get prepared to pay them.
So, just focus on this 10-minute read, and grab your notes and calculator!
What are Property Maintenance Fees in Egypt?
Simply put, property maintenance fees (sometimes known as service charges) are fees paid by the property owner for the maintenance and services of the unit. Moreover, these fees cover ongoing community management, security, and all shared facilities inside a building or a compound.
What are the categories of property maintenance fees, you might ask? Here is a breakdown of what these fees are concerned with:
- Electrical systems maintenance and upgrades
- Water and sewage network maintenance
- Central satellite dish, receivers, and audio systems
- Air conditioning and ventilation system maintenance
- Elevator maintenance and shared facility upkeep
- Financial and administrative management costs
- Gates, doors, and locks maintenance
- Security monitoring, gate control, safety, and integrity checks
- Property guarding, cleaning, and pest control services
- Emergency expenses and unexpected repairs
- Cleaning and landscaping of shared areas
- Pool and shared facility upkeep
- Lifts, lighting, and common electricity and water
- Building maintenance and repairs of shared parts
Now that you understand the breakdown of the property maintenance fees, let’s tell you how it is calculated.
How Are Property Maintenance Fees Calculated in Egypt?
Property maintenance fees in Egypt are regulated by Egypt Law No. 119 of 2008 (the Unified Building Law) and its Executive Regulations (issued under Prime Minister’s Decree No. 144 of 2009). It is governed by the Egyptian Civil Code (ECC 131/1948).
Also, according to this law, the maintenance expenses are divided into 2 complementary types:
- One-time Maintenance Deposit “Wadiaa” (Sinking Fund)
- Annual Recurring Service Charge
Moreover, their details are as follows:
| Maintenance Fee Type | Description | Cost | Coverage |
| One-time Maintenance Deposit “Wadiaa” (Sinking Fund) | A single, one-time lifetime lump sum payment paid to the developer. The Egyptian Civil Code ensures its payment into a dedicated bank account whose interest is dedicated to funding the upkeep of the unit | around 8%-10% of the total property purchase price; paid in bulk or in installments till the unit’s delivery date; however, owners don’t take over the unit until these fees are fully paid
(the amount differs according to the type, location, and use of the unit) |
All the major structural repairs, replacements, and long-term facility updates. |
| Annual Recurring Service Charge | A recurring monthly, quarterly, or annual fee calculated as a percentage of the unit price that covers daily operations | around 2% to 5% of the unit’s price annually (paid monthly or quarterly); calculated based on the need for annual maintenance measures of the property
(the amount differs according to the type, location, and use of the unit) |
All the daily upkeep, such as 24/7 security, landscaping, pool care, elevator maintenance, and common utilities. |
What compounds in Egypt impose these fees? Let us tell you in the following section!
What are Compounds Imposing Property Maintenance Fees?
In fact, maintenance fees are not an optional item; they are a fee regulated by Egyptian law and should be paid in all real estate projects all over Egypt. So, these service charges should be applied in all compounds in all areas, such as:
- New Cairo City:
- Mivida Emaar Misr
- Mountain View iCity
- Hyde Park New Cairo
- 6th of October City:
- O West Orascom
- Badya Palm Hills
- Kingsway Mountain View
- New Administrative Capital:
- Il Bosco Misr Italia
- La Vista City La Vista Developments
- Al Maqsad City Edge
- North Coast-Sahel:
- Marassi Emaar Misr
- June Sodic
- Silversands Ora
By now you know all about the property maintenance fees; don’t you think it’s time you took action? Let’s tell you what you can do now.
Wrapping Up & Taking Action
In this article, we covered 3 core ideas:
- The simple definition of property maintenance fees as the lump sum and the annual fees paid for the needed maintenance services in any real estate project
- Moreover, these fees are divided into a deposit (wadeeat el siana) that is paid when the unit’s contract is signed as a percentage of the unit’s price. The recurring fees are those paid quarterly or annually for day-to-day operation. Their amounts vary according to the type, location, and use of the unit
- Finally, we tackled many areas and compounds as a sample of the compounds that impose these fees, since they apply to all properties across Egypt according to Egyptian law
What are you waiting for? Just go through Nawy’s huge property inventory, pick the unit that matches your needs, and contact our team, who will also ease the process and manage all the fees’ regulation.
Don’t forget that Nawy lists the maintenance fees for all the available units in the payment plans breakdown.
Explore top properties for sale in Egypt
FAQs
Who Pays the Maintenance and Service Fees?
The owner of the property pays the maintenance fees. Also, if he rents the unit, he still pays for the largest portion of these fees, yet the renter pays for the minor maintenance operations.
What are the Categories of Maintenance Fees?
Maintenance fees have various categories that include utilities, security, landscaping, operation and management costs, and emergency costs.
Why Do Maintenance Fees Vary Between Projects?
The main standards by which maintenance fees are calculated are the project type, location, and use. For example, a unit in rural areas tends to have lower fees than a unit in elite compounds.
