Just five hours away from the UK, lies a different world – Egypt. Known for its rich and history laden past, Egypt has attracted tourists for many years. In more recent years however Egypt has been known to attract a good number of property investors because of the favourable prices.
The market is buzzing with retires, investors and second home buyers. One huge advantage of living in Egypt is the cost of living. Compared to Western Europe, a decent lifestyle can be enjoyed by home owners without busting their budget.
Let’s take a closer look at what you can expect from Egypt and what it takes to make the transition.
Egypt’s climate climate is good all year round. The North Coast and delta regions are influenced by the warm and mild Mediterranean climate and the south of the country boasts a subtropical climate. Long hours of sunshine and an average daily temperature of 21.9C in Cairo provides the ideal starting point for investors on the lookout for a life in the sun.
Buying Egyptian Property
The Egyptian government has been actively promoting the buying of property in Egypt. They even changed some of the nations residential tourism laws to make it easier for foreigners to buy property there.
When buying Egyptian property as a foreign investor, you are granted rights to own real estate and land. One problem though lies with the registry in Egypt as it is out of date and incomplete. It is believed that only 10% of properties in Egypt are actually registered. This does create some problems for the property investor.
- The first stage of the buying process is like this: you, the buyer reserves a new (off plan or under construction) property with a reservation deposit. This is normally done with the help of £ 2,000, which provides the “option to purchase”.
- The seller will then release a private purchase contract, both in English & Arabic. Further to this he will and supply you with relevant paperwork related to the title, building license, planning permission and boundaries. For rentals there will also be furniture pack and rental guarantee options.
- The conditions in regards to the balance payment of the purchase price will also be contained within the contract. Property investors are advised to secure their funds from outside of Egypt if possible.
- During the construction period there will be a range of scheduled payments. If the property is built, this will differ.
- The funds will usually be transferred to a safe Escrow account to protect the buyer in case the developer goes bust.
- Once the completion payment is delivered, you, the owner will receive the property keys. Within a pre-arranged time frame owners can complain about remedial issues in the building before the very last payment is made, also known as snagging.
- Now it’s time to register the property in the land registry in your name.
Read more here on the stamp duty and taxation laws of Egypt.
Property Hot Spots
Cairo is definitely located at the upper scale market in Egypt. Since it is the main economic center and the capital it is also home to some major developments like Dreamland, a satellite city south of Cairo.
Ex-pats love the area because it provides refuges from the smog of the inner city. Infrastructure is plentiful too with schools, golf course, hospital and leisure.
Sahl Hasheesh & El Gouna Resort
The North Red Sea Coast is a haven for property developers and investors alike. Plans to build an underwater city have been mentioned before and El Gouna is also being promoted as the Venice of Egypt.
The town is privately owned and boasts more than 15 hotel properties, luxury marinas and 300 private villas and apartments with more being constructed. Not to forget the 10km of pristine beachfront.
The area is well known for sport fanatics and tourists who like to spend their holidays in style.
The area from Alexandria through to El Alamein has especially favoured by property investors in the last couple of years. Having long been known as the Egyptian Cote d’Azur, high rollers have spent their summers here in style for decades.
Ghazala Bay is also expected to become hot property with many developments on the horizon.
Sharm El Sheikh
Having been known as the most popular destination in Egypt for a long while, Sharm El Sheik lies ideally situated on the Red Sea coastline.
Naama Bay offers locals and visitors alike plenty of lifestyle choices with shops, restaurants, modern amenities, bars and nightclubs. There are also plenty of water sports and dive centers.
Celebrities are regularly seen strutting their stuff along this stunning coast. It’s no wonder really since the resort has its own international airport making it easy to access from all over Europe.
Marsa Alam is a relative new resort and lies 300 km south of Hurghada on the Coral Coast. There is also a close by international airport that serves overseas tourists. The localities include world renown dive sites, prime beachfront properties and pristine sandy beaches.