According to International Christian Concern (ICC) the mob attacked Manshiet El-Naghamish in Sohag Governate last Friday, destroying a Christian guesthouse and nine believers' houses and severely damaging four Christian-owned shops.
ICC also says four Coptic Christians were injured in the attack.
The charity says the attack happened because local Muslims believed a recently built four-storey building in the village would become a church.
The building is actually a community centre, school and care home.
Christians in El-Naghamish have separately asked for permission to build a church in the village because their closest one is three miles away. They are waiting for the Egyptian government's approval.
Around 2,000 Copts live in the village.
ICC has said Egyptian police arrested 18 Muslims involved in the attack and the Governor of Sohag, along with the Chief of Security for the Governorate, visited the village and held a reconciliation session between Christians and Muslims there.
William Stark, ICC's Regional Manager, said: "ICC mourns with the families who have lost their homes and businesses due to these hate crimes.
"This is the latest in a long string of similar attacks, and we are impatient to see proper justice served.
"The Egyptian government must do more to secure the lives and properties of all citizens, including Christians."