Real Estate Investment in Egypt - Overview

The Egyptian property market is particularly attractive to overseas investors along the Red and Mediterranean Sea coasts, and also in the major cities of Luxor, Cairo and Alexandria. Investors have been benefiting from the country’s increase in tourism traffic and also as a result of the Egyptian government’s sweeping reforms designed specifically to attract further inward investment.

The ancient and fascinating country of Egypt is of immense interest to many thousands of foreign visitors each year and now it is increasing in interest for overseas property investors and also world renowned foreign property development companies such as Dubai based Emaar Properties who made a move onto the Cairo property scene in 2005. And while real estate prices currently remain low, the Egyptian property market’s star is rising fast.

Having consistently worked to promote the historic, cultural and entertainment attractions available in Egypt, the Egyptian government was rewarded in 2004 when the country received its greatest numbers of visitors on record to date. Despite some terrorism threats that persist, Egypt is now a number one, medium haul, top end destination for European travellers.

Tourists are attracted to Egypt for its history that dates back to around 3200BC, for the warm waters of the Mediterranean Sea, for the diving possibilities on the Red Sea and for the luxury hotels and resorts that make Egypt something special for the international tourist. An increasing number of visitors are buying into new build luxury apartment complexes in the major holiday hotspots and are being rewarded with low off plan prices, guaranteed rental yields, a holiday home in the sun and an investment that even begins increasing in value over the build period.

These property investors are taking a very small risk in real terms since the government of Egypt has committed itself to transforming the country’s economy through the promotion of inward foreign direct investment over the long term. To that end the government began the introduction of new reforms to customs, income and corporate taxation in 2004, they are privatizing certain sector industries, working on currency liquidity and are trying to develop an export market for their natural gas deposits. Experts agree that all these efforts should improve the economy of the country, create more opportunity for employment and domestic wealth growth and increase the attraction of the country from an overseas investor’s point of view.

In terms of the overseas interest that the real estate market place in Egypt has already attracted, a subsidiary of Dubai based Emaar Properties - namely Emaar Misr. - signed a contract worth somewhere in the region of 4 billion US dollars to develop an exclusive and iconic series of villages in Cairo in 2005. The seven villages will be known as Cairo Heights when completed and will be located in the Mukattam Suburbs and consist of luxury residential accommodation, exclusive retail facilities and breathtaking communal areas - and it is of absolute credit to Egypt and Cairo in particular that Emaar have chosen to build in the city as their first step in their bid to create an exclusive residential development in every major city of the world.

Property investors moving into the real estate market place in Egypt right now could be said to be pioneering; but with the Egyptian government’s absolute commitment to economic growth and stability and the country’s growing attraction with international visitors ever increasing, those buying now are set to profit substantially from their property investment decision over the medium term whilst benefiting immediately from some incredibly imaginative and exclusive modern developments being constructed across the country.

Real Estate Investment Potential in Egypt

Interest in the investment property market in Egypt is beginning to awaken as the wider world becomes aware of the incredible investment opportunities and incentives available for investors in Egypt.

The key factors attracting overseas investor interest include Egypt’s fast growing tourism sector, the fact that the government is continuing to commit to legislative initiatives designed to enhance the investment climate and the fact that property prices in Egypt remain low and affordable whilst demand for quality property for sale and short term let is increasing.

The majority of real estate investment interest is currently centred upon the resort areas of Egypt and the major cities like Cairo and Alexandria.

In the resort areas on the Red and Mediterranean Sea coasts property investors are tapping into the increasing tourist demand for short term rental accommodation; this market is currently returning the best rental yields countrywide.

The second home resale market in the resort areas is also beginning to present profit potential on the underlying capital investment made because more overseas buyers are seeking holiday homes or second homes in these areas. Egypt is close at hand for European holiday makers and therefore owning a holiday home in this exotic location makes perfect sense for many European travellers.

In Egypt’s main cities like Cairo and Alexandria overseas property investors are again seeking to profit from rental returns, and with the creation of brand new luxury residential property districts like Cairo Heights, international interest is increasing.

Overall the future prospects for the property market in Egypt are positive. Egypt is a politically stable country and one currently enjoying the best relationships with many of the world’s most influential economies that it has ever enjoyed. The economic climate in Egypt is open for investment and investors are being actively encouraged by taxation breaks, low labour costs and a country that has a growing middle class who are beginning to exercise their increased purchasing power.

Overseas real estate investors are aware that the growth in the purchasing power of the domestic market is fantastic for the long term profitability of all investments in Egypt’s property sector. The overseas tourism and second home markets will account for good yields and returns but a growth in domestic demand and purchasing power will allow investors to more aggressively target Egypt safe in the knowledge that they have a wider market to potentially profit from.

Property in Egypt - Purchase

As a foreign investor you have the right to own real estate and land in Egypt. An investor who buys into this emerging property market now may well be buying into a prolonged period of growth which is the exact appeal of Egypt from an investor’s perspective. A real estate investor contemplating the purchase of undeveloped land or older, well established resale properties will need to employ a lawyer specializing in real estate law in Egypt to assist with any such purchase to ensure the transaction is conducted legally and that at the end of the property buying process the investor is the legitimate owner of the real estate and can seek to have it registered in his name and acquire the deeds to the real estate.

An investor requiring a mortgage to purchase property in Egypt may like to secure this outside of the country - alternatively mortgage law in Egypt has recently improved and investors and foreign buyers do have access to mortgage products in Egypt now. However, the real estate they are seeking to purchase has to be registered at the property registry for the mortgage company to consider it. To be eligible for home finance an investor will need to fund no more than 85% of the property purchase price and be able to repay within either 20 or 30 years.

Those considering investment property in Egypt would be wise to employ an estate agent to assist them with their search, negotiations and also with the property buying process. Once an investor’s objectives have been identified a local estate agent can find the types of property or land that fulfill the objectives and can make offers to the vendor and deal with any counter offers to ensure that a property is secured for sale to the investor.

It is usual to negotiate a property’s selling price in Egypt - unless buying off plan. If buying off plan the price is fixed with some extras usually negotiable for inclusion in the asking price. Once a property has been decided upon it is usual to pay a holding deposit that takes the property off the open market while contracts are drawn up. In a country with real estate registration issues as complex as Egypt it really is critical to have a lawyer conduct searches and to advise on the legality of the purchase. Even if a property investor in Egypt is buying a brand new property from a well established developer it is wise to take advice from an independent lawyer.

Ancient Egypt is familiar to us all; from history lessons to Hollywood, we have all seen numerous depictions of this ancient civilisation. This exposure has opened the world's eyes to the appeal of visiting a nation of such enormous historic and cultural heritage. The magnets that pull in the hordes of tourists to Egypt every year are quite obvious to the eye; the hustle and bustle of Cairo and Luxor, the Pyramids, the sleepy motion of the Nile and the clear blue waters of the Red Sea coast.

Situated at the north-eastern corner of Africa, Egypt is bordered on the north by the Mediterranean Sea, in the east by Israel and the Red Sea, in the South by Sudan, and to the west by Libya. Whilst much of Egypt is attractive to the visitor, property investors tend to focus on tourist resorts such as the ancient city of Luxor and the Red Sea with some opportunities existing in the other major urban and tourist centres as well.

Considering the attractions Egypt has to offer, real estate prices are low with some good quality apartments available for less than £25,000. The tourist industry is growing and Egypt's relatively close ties with the west are having a positive impact upon the economy. Apart from the obvious appeal of owning property in this exotic country, there are many indicators that suggest that it may not be a bad financial move either.

Although Egypt is a relatively new market we have a number of investment opportunities available for the overseas investor looking for something different.

No Hidden Costs - "Keys in Hand"
All our real estate is sold "Keys in Hand" - this simply means that the properties listed price is ALL that you will have to pay inclusive of local taxes, lawyers fees etc..

Egypt allows 100% freehold of real estate property by the majority of foreign nationals:
You are able to buy and sell as you would in the U.S.A., Canada, UK and other EU member countries with no restrictions.

If you want to rent out your property it’s yours to rent ou:.
This is the Worlds fastest growing area for holidaymakers looking for the sun.

 
Egypt – Not just an extremely attractive destination - But also an extremely attractive investment!

Egypt Where the sun shines every day of every year
The realisation of a lifelong ambitions to own a real estate property overseas is often far easier to achieve than most people realise and there is no doubt the Egypt’s benevolent all year round climate, vast range of activities and exhilarating atmosphere make it an extremely attractive destination for those who seek a holiday, retirement or investment property with a twelve month season.

If you combine all the factors of stability, desirability, increasing tourism, increasing demand for property add the pending shortage of supply together with the Egyptian sun giving a twelve month holiday season, then you have the perfect combination for investment in overseas property.

Average lowest temperature each year is 23C (75f) Winter sun rating 10/10 – no clouds here!

Regular low cost flights from the UK and most EU Countries
Almost the same air travel time as the Canaries from northern Europe (4 hours) but with one exception - year round glorious weather!