A maintenance deposit is a lump sum the buyer pays the developer, usually set as a percentage of the unit price, to fund the upkeep of a project's shared areas and services after delivery. It is separate from the unit price and does not reduce the down payment or the installments. Yearly service charges are a different, recurring cost; when the income from the deposit falls short of the real bills, owners may be asked to pay more.
What is a maintenance deposit?
It is money set aside for the common parts of a project: gardens, security, cleaning, lifts, lighting and similar services. Instead of billing each owner every year from day one, the developer collects a sum upfront and uses it, or the return on it, to run the project.
How large is it? The contract decides. A legal study by the law firm Saadah & Abu El-Komsan, reported by Masrawy on 19 September 2026 after it analysed more than 40 contracts, found deposits of up to 10% of the unit price in some contracts, collected in some cases before delivery. Amwal Al Ghad wrote in March 2024 that developers typically collect 8% to 10% of the unit value before handover. Take the figure from your own contract rather than assuming either number.
Who holds the money, and what does the law say?
The developer usually receives the deposit. A 2021 legal commentary by the firm Soliman Hashish & Partners, published on Mondaq, argues that under the Egyptian Civil Code the deposit clause amounts to a deposit contract between buyer and developer: the developer holds the money for its stated purpose and needs the buyer's consent to use it otherwise. That is one firm's reading, not a court ruling, so treat it as a reason to read the clause closely.
Management of a building after delivery falls under the occupants' union. The study Masrawy reported noted that the Building Law No. 119 of 2008 regulates occupants' unions and the management and maintenance of buildings, yet some contracts set no binding timetable for handing management of the deposit to the union. In the cases it reviewed, it also found no separate account for the deposit, no stated return on it and no periodic statements.
The study recommended holding the money in a separate bank account that earns a return, issuing periodic statements, and setting a binding timetable to transfer its management to the owners' union. In February 2026, Enterprise reported that a separate draft law on occupants' unions was being prepared and that the government was considering requiring residential communities to keep maintenance fees in separate, project-specific accounts. These are proposals; check whether any has become law before relying on it.
How is a deposit different from service charges?
| Maintenance deposit | Yearly service charges | Occupants' union contributions | |
|---|---|---|---|
| How it is paid | One lump sum | Recurring, as the contract sets | Recurring, as the union decides |
| When | Usually before or at delivery | After delivery | After the union is running |
| Basis | A % of the unit price, per the contract | Whatever the contract sets | Membership fees set by the union's general assembly |
| Who sets it | The sales contract | The contract or the management company | The owners through the union |
A project may use one model or combine them. Some contracts take a deposit and later ask for yearly charges or top-ups on top of it.
Why do developers ask for top-ups?
Because a fixed sum has to keep paying for costs that rise. Amwal Al Ghad reported in March 2024 that, after collecting the deposit, developers begin claiming maintenance expense differences a few years after handover, and that buyers find these hard to plan for because the increase is not clear in advance. In the same report, the developer Madinet Masr launched a product called Thiqa: a one-time payment, in place of the deposit and later differences, that the company said covers maintenance for up to 20 years from handover, to be tested first on units in several projects. That is one developer's offer, not a market rule.
Illustrative example with hypothetical numbers
A unit priced at EGP 4,000,000 with an 8% maintenance deposit. Assume the developer invests the deposit at 12% a year and this unit's share of the project's yearly running costs is EGP 45,000.
| Item | Calculation | Amount (EGP) |
|---|---|---|
| Deposit | 4,000,000 × 8% | 320,000 |
| Yearly income at 12% | 320,000 × 12% | 38,400 |
| Unit's share of costs | assumed | 45,000 |
| Yearly gap | 45,000 - 38,400 | 6,600 |
Variation: the return falls
If the return drops to 8%, the deposit earns 320,000 × 8% = EGP 25,600 a year, and the gap grows to 45,000 - 25,600 = EGP 19,400. Costs rising while returns fall is how a deposit that looked generous at signing ends up needing top-ups. If the gap is covered by spending the deposit itself, the fund shrinks every year.
The base matters too: an 8% deposit on the price before a discount is larger than 8% on the price after it. The guide to the total cost of owning a unit works through that case.
What should I ask before signing?
- What percentage is the deposit, of which price, and when is it due?
- Is it held in a separate bank account, does it earn a return, and will owners receive statements?
- When and how does management pass to the occupants' union?
- Are there yearly service charges as well, and how can they be raised?
- Can the developer ask for top-ups, and on what basis?
- On a resale, does the deposit stay with the unit, and is anything owed on it?
Frequently asked questions
Is the maintenance deposit part of the unit price?
No. It is paid on top of the price and does not reduce the down payment or installments. Add it to your total cost on the date the contract sets.
How much is the maintenance deposit in Egypt?
It varies by contract. The study Masrawy reported in September 2026 found deposits of up to 10% of the unit price in some contracts, and Amwal Al Ghad reported 8% to 10% in March 2024.
Is the deposit refundable?
Your contract decides. The deposit is collected to fund the project's upkeep, so read the clause on what happens to it, and ask what happens to your share if you sell.
Who manages the deposit after delivery?
The developer usually receives it, and the contract says who manages it. The Building Law No. 119 of 2008 regulates occupants' unions, and the study Masrawy reported recommended a binding timetable for handing the deposit's management to the union, which some contracts lack.
Can the developer charge more later?
Some do. Amwal Al Ghad reported in March 2024 that developers begin claiming maintenance differences a few years after handover. Check whether your contract allows this and how the amount is set.
Run the numbers
The payment plan calculator in CalcRealty shows the maintenance deposit alongside the down payment and installments, so you see it in the full schedule with its date and amount, and you can export the schedule as a PDF. Get CalcRealty on Google Play.
See also how the down payment and installments are calculated, how service charges affect net rental yield, and whether to buy off-plan or ready. Terms such as occupants' union are defined in the real-estate glossary.
Results are planning estimates; the developer contract sets the final amounts.
For real estate consultants: how to explain the deposit to a client without surprises, in the guide to presenting a payment plan.