For months, Egypt’s rapidly growing fractional real estate startups have operated in a lucrative but hazy regulatory space, selling “slices” of seaside chalets and luxury apartments to thousands of retail investors. Now, the government is stepping in to draw some lines in the sand.

Egypt’s Financial Regulatory Authority (FRA) has issued a sweeping new set of regulations (Decision №125 of 2025) aimed squarely at platforms like Nawy, SAFE, and others that have turned high-end real estate into a micro-investment game.

The move brings an end to the sector’s “ask for forgiveness, not permission” phase. The new framework effectively forces these platforms to stop being freewheeling tech marketplaces and start acting like what they are: real estate investment funds.

For the startups, it’s the long-anticipated price of legitimacy. For the regulator, it’s a tardy but necessary attempt to get a handle on a market that has exploded in popularity as Egyptians scramble to shield their savings from inflation.

From Grey Zone to Regulated Playground

Fractional ownership allows multiple investors to co-own a property, receiving a share of rental income or capital gains. In a country where soaring property prices and currency devaluation have put traditional real estate out of reach for many, the model has been a runaway success.

One of the earliest movers, SAFE, a platform launched by developer Madinet Masr, has sold over EGP 300m ($6m) in property shares to more than 3,500 investors since early 2023. With returns averaging 10% annually — often pegged to the US dollar — it’s an attractive hedge for savers.

“This is a cornerstone of our vision to drive financial inclusion,” says Abdallah Sallam, CEO of Madinet Masr Innovation Labs, noting that SAFE is one of the first to apply for a license under the new FRA rules.

The investor appetite has not gone unnoticed. Cairo-based proptech Nawy, which operates Nawy Shares, recently closed a $75m funding round — a massive haul in the Egyptian tech scene — led by Partech Africa.

Nawy’s CEO, Mostafa El Beltagy, sees a future with millions of micro-investors but has been vocal about the need for oversight. “We need legal clarity before this becomes the next fintech grey zone,” he previously told reporters, highlighting the risk of the model being used for money laundering without proper checks. It seems the FRA was listening.

The New Rulebook

After what it diplomatically calls “a series of meetings with real estate development sector leaders,” the FRA has laid down the law. The new regulations are less a gentle nudge and more a complete overhaul of how these platforms must operate.

Key requirements include:

• Get Licensed: All platforms must be approved by the FRA to operate.
• Becoming a Fund: Platforms must now be structured as licensed real estate investment funds, with all the trimmings like licensed custodians and third-party auditors.
• Test and Educate Investors : To protect investors from themselves, platforms must make them pass a “knowledge test” after reviewing educational materials about the risks involved.
• Radical Transparency: Forget glossy marketing. Platforms must now provide a firehose of disclosures, including feasibility studies, independent property valuations, dividend distribution dates, and any court rulings or disputes affecting a property. They must also disclose when a property’s purchase price suspiciously exceeds its fair value appraisal.
• Handling the Cash: Subscriptions must be held in a dedicated bank account for each offering. The rules for refunding investors — if they withdraw or an offering fails to meet its minimum target — are now explicitly defined.
• An Exit Route: The regulations formalise rules for redemption, allowing investors to sell their shares back to the fund before its term ends, subject to certain limits (up to 20% of total shares). This is a crucial step toward addressing liquidity, a major concern for investors in the space.

The FRA stated its goal is to create a “safe, transparent, and effective investment environment.” For the platforms, it means a lot more paperwork. The regulator says three entities — likely including Nawy and SAFE — have already submitted requests to “regularize their status.”

A Market Forced to Mature

While the regulations add a layer of bureaucracy, they also provide a clear legal framework that could unlock further growth and institutional investment. The move formalises a market that has been thriving on digital savvy and economic necessity.

Partnerships are already deepening the ecosystem’s foundations. Emtelak, another platform, recently teamed up with payments giant Fawry to digitise its entire transaction flow, from down payments to rental payouts.

The government, for its part, seems keen to support the now-regulated sector. Officials have hinted at new incentives for real estate investors and are speeding up the issuance of “property national ID numbers” to streamline legal documentation.

The era of selling property shares with little more than a slick app and a promise of high returns is over. Egypt’s proptech scene has been told to put on a suit and tie. While this might temper the sector’s explosive, wild-west growth, it provides the stability needed for the model to become a mainstream pillar of the country’s investment landscape. The question now is how quickly these platforms can adapt to playing by the new, and much stricter, rules.