Egypt sets framework for heritage building compensation

Egypt's Cabinet has issued a decision to refine the registration system and incentive mechanisms for owners of buildings with distinguished architectural styles. This move aims to better protect and manage properties listed on heritage registers, in line with the Law on the Preservation of Heritage Buildings.

The Cabinet has approved a draft resolution that establishes a committee tasked with assessing compensation for owners affected by prohibitions on demolition or additions to their heritage properties. The resolution outlines specific criteria for assessment and designates the responsible entity for disbursing these funds, adhering to Law #144 of 2006.

Owners of distinguished properties must submit a compensation application, supported by a technical report detailing the site's requirements and land use, along with an inspection report of the building. A certified copy of the decision listing the building as a distinguished architectural style is also required.

The Compensation Assessment Committee will convene monthly and can consult with non-voting experts. Applications will be referred to two registered experts who will assess the property's market value under two scenarios: one assuming the building is restricted as heritage, and another assuming it is not. The compensation will be calculated based on the difference between these values.

Disbursement of compensation will be coordinated by the relevant governorate with the Finance Ministry. Owners will be notified within two weeks. Compensation for expropriation is paid in full, while compensation for restricted ownership can be paid in a single installment within six months or scheduled over a maximum of five years with interest. Owners may also opt for compensation in kind.