Posted: Wed 28 March, 2007

Egypt Property Buyers Guide

As a foreign investor you have the right to own real estate and land in Egypt, but unfortunately the property registry in Egypt is out of date, incomplete and many believe only 10% of properties in Egypt are actually registered- naturally this creates a problem for the property investor.However, the majority of real estate investment interest is focused on the main cities and resort areas in Egypt and these are far more geared up to the international property market. Furthermore the Egyptian government is committed to attracting foreign investment into many sectors including the real estate sector therefore the path is being eased for investors all the time. Most current foreign investors look to buy off -plan properties as they offer excellent payment plans and a higher quality of standard & build.

An investor who buys into this emerging property market now may well be buying 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.

As a foreigner it is not possible to own more than 2 properties in Egypt without setting up a limited company.

Steps to Purchasing:

• The buyer reserves their property, off - plan or under construction and pays the
  reservation fee – usually £2000. This secures the property and fixes the sale price.
• The seller (developer) releases the purchase contract (in English & Arabic) and
  supplies documents relating to the title, boundaries & planning permission.
• When the full amount has been received by the seller the property can then be
  registered in the land registry in the name of the new owner.

The registration fees depend on the property size:

Property size up to:
• 100sqm: £500
• 200sqm: £1000
• 300sqm: £1500
• 1000sqm: £2000

You should budget for 5-6% purchase costs.

Mortgages:
If you require finance to fund your purchase then the best way currently is to release the equity from existing properties that you own. Some properties are cheap enough to fund through a personal loan.

Rentals & Property Management
Once you take ownership of your property you need to think about who is going to maintain it for you. Property management services can be provided by most services can be provided by most developers in-house. They can provide you with cleaning, laundry, key holding services and much more. There are also local companies who can assist with renting your property and more specialised property management .
Useful Websites:

• www.hurghada.com
• http://egypt.travel

Please note, that whilst we aim to ensure to the best of our ability that the information provided is correct, and up to date, no guarantees can be made to the correctness of the contents of this page. You should conduct your own independent research and consult qualified solicitors and accountants on specific matters.