Glossary
What is down payment?
A down payment is the amount a buyer pays on contract, expressed as a percentage of the unit price. In Egypt's primary market it typically ranges from a low single-digit percentage on long plans to twenty percent or more on short ones, and it sets the rest of the schedule.
What it signals
The down payment is the developer's first cash and the buyer's commitment. A low down payment widens the buyer pool and lengthens the plan; a high one narrows it and shortens the plan. Developers move it deliberately to shape demand at launch.
Down payment versus reservation payment
A reservation payment holds the unit while the contract is prepared; the down payment is a contractual instalment and is usually the larger figure, with the reservation credited against it. Confusing the two is a common source of dispute over what is refundable.
How it interacts with price
Because the plan is part of the price, a lower down payment is rarely free. It usually appears alongside a higher total price or a shorter cash discount, which is visible only when the plans are compared on the same present-value basis.
Frequently asked questions
- Is the down payment refundable?
- Generally not, once the contract is signed, other than under the contract's own cancellation terms. The refundable stage is normally the EOI or the reservation, before contract.
- Can the down payment be paid in instalments?
- Many developers split it over the first months of the plan. It is a negotiable term and should be confirmed in the payment schedule rather than verbally.
Related
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