Buying Property in Egypt : Why and Where?
Dalia, Wednesday, 20 November 2013
This article is part of a series of 8 articles about buying property in Egypt. The other articles in the series cover the following topics:
EGYPT is one of those countries that have been attracting visitors and tourists, investors and holidaymakers for centuries. And it will continue to do so, mainly because of its warm waters both to the north where the Mediterranean Sea lies and to the East where the Red Sea is. Yet that is not the only reason.
There are other more lucrative reasons why you should buy property in Egypt. First off there is the low costs of buying property, the low property taxes and the nonexistence of capital gains tax. There is also the relatively low cost of living and maintaining the property. Even in the midst of political and economical struggle for Egypt as a nation, its property market remained strong in the first half of 2013 and was doing surprisingly well, with house prices and rents rising. The demand from prospective homebuyers was strong on both the domestic and foreign front, which resulted in a continuation of residential construction. The average rent per square meter ranges from USD 7 to USD 9 per month, whereas in 2012, it was around USD 6 to USD 8 per sq. m./month. The average buying price per square meter of apartments in Cairo’s upscale neighborhoods remained more or less unchanged during the year. Apartments in Maadi, Zamalek, among others, cost around 1,000 USD/sq. m.
Also, a great step towards regaining Egypt’s financial composure as well as reassuring investors and prospective property buyers, in the second quarter of 2013, there were about 4,400 residential units completed. Of these, about 73% were located in New Cairo, which included the following: Lake View, Hype Park, Layan Residence, Family City, High Land, and Hayat Heights.
Whether you prefer to buy, lease, or rent property that has been previously owned, or you want something that is still being developed, there are three major investment hotspots in Egypt: Cairo, the Red Sea, and the Mediterranean Coast.
Cairo
Emaar’s Uptown Cairo
The EGP 12 billion (US$2.2 billion) Uptown Cairo was being constructed by the developer Emaar Misr. The development offers several residential villages, a golf course, malls, sports and leisure facilities, as well as a business park. This is the first wholly foreign-owned developer to enter the Egyptian market.
Katameya Heights
The super-luxurious Katameya Heights launched prior to Uptown Cairo, covers an area of about 1.5 million sq. m. Katameya Heights, introduced in 1997, were purely local. Formerly a stretch of desert, Katameya Heights is now a large suburban area, with large houses, and has attracted enormous interest. The resort offers marvelous clubhouse, beautifully designed golf course and luxurious villas. Al Rehab City
Rehab City, a real estate development located in New Cairo, is being developed by Talaat Moustafa Group (TMG). The development is located on the Cairo-Suez road. It offers many shopping malls and a cinema complex. Rehab City is preferred by many upscale locals.
Madinaty
With a total budget of EGP 60 billion (US$11 billion), Madinaty is considered one of the biggest and most expensive real estate developments in New Cairo. Developed by Talaat Moustafa Group (TMG), it includes 80,000 residential villas, townhouses and apartments. There are also recreational and commercial areas, schools, medical facilities and hotels. Madinaty is adjacent to El Shrouq City. Construction began in July 2006, and is now fully functional.
Red Sea
Sharm el Sheikh
Sharm el Sheikh is now the country’s most luxurious and attractive resort. It has a vibrant nightlife, and boasts many nightclubs, the longest continuous bar in the Middle East, and a marina which can handle private yachts and sailboats. Its development has been led by tourism, and hotels such as the Ritz-Carlton have sold private villas. New residential developments tend to follow this hotel-based pattern.
Hurghada
Hurghada is the most popular seaside resort in Egypt with an international airport with direct flights to major European countries, as well as flights to Cairo. Property prices are slightly lower than Sharm ElSheikh, with lots of beach front property available for purchase.
Sahl Hasheesh
Eighteen kilometers South of Hurghada you’ll find Sahl Hasheesh Bay, where a purpose-built resort flanking 12.5 kilometers of sandy beach is being built. Covering 32 million square meters, by the time it is completed in 2014, it will have 20 5-star hotels and 8 golf courses.
Marsa Alam
Much further south and only two and a half hours from Luxor is the Port Ghalib project developed by Al Kharafi Group of Kuwait along 18 kilometers of shoreline. It opened in November 2007, with around 100 properties for sale, and a further 350 in the pipeline. Marsah Alam has a newly-built international airport, an international convention centre, a man-made lagoon with a myriad of sports facilities.
Mediterranean Coast
Marassi
www.marassi-egypt.com
The Marassi resort, worth around EGP9.92 billion (US$1.74 billion), is being developed by Emaar. It is located on a7-km coastline at Sidi Abdel Rahman on the Mediterranean near El Alamein. Marassi resort will offer up to 3,000 hotel rooms, luxury villas, and chalets.
Almaza Bay
Travco has developed Almaza Bay at Marsa Matruh on the Mediterranean between Alexandria and Libya. The resort has a total area of 5 million sq. m. and boasts about 2.5km of flawless beachfront in one of the most pristine beaches in the world. Even if you don’t plan on living in Egypt, there could be great financial benefits to renting property out to holiday makers. Tourists flock to the warm-weathered country twelve months of the year and are constantly looking to rent apartments or villas for their holiday. This rental market currently has the best profit yields in cities all over the country. Property rental could range from £150 (1,652 EGP) per week to £400 (4,405.05544 EGP) per week for apartment accommodation. Another market bringing in great profit potential is home resale, especially in hotspot holiday areas. In addition, foreigners look for apartments in Egypt’s main cities like Cairo and Alexandria where buying, selling, and renting is all accessible with a guaranteed profit return.
This article is part of a series of 8 articles about buying property in Egypt. The other articles in the series cover the following topics:
EGYPT is one of those countries that have been attracting visitors and tourists, investors and holidaymakers for centuries. And it will continue to do so, mainly because of its warm waters both to the north where the Mediterranean Sea lies and to the East where the Red Sea is. Yet that is not the only reason.
There are other more lucrative reasons why you should buy property in Egypt. First off there is the low costs of buying property, the low property taxes and the nonexistence of capital gains tax. There is also the relatively low cost of living and maintaining the property. Even in the midst of political and economical struggle for Egypt as a nation, its property market remained strong in the first half of 2013 and was doing surprisingly well, with house prices and rents rising. The demand from prospective homebuyers was strong on both the domestic and foreign front, which resulted in a continuation of residential construction. The average rent per square meter ranges from USD 7 to USD 9 per month, whereas in 2012, it was around USD 6 to USD 8 per sq. m./month. The average buying price per square meter of apartments in Cairo’s upscale neighborhoods remained more or less unchanged during the year. Apartments in Maadi, Zamalek, among others, cost around 1,000 USD/sq. m.
Also, a great step towards regaining Egypt’s financial composure as well as reassuring investors and prospective property buyers, in the second quarter of 2013, there were about 4,400 residential units completed. Of these, about 73% were located in New Cairo, which included the following: Lake View, Hype Park, Layan Residence, Family City, High Land, and Hayat Heights.
Whether you prefer to buy, lease, or rent property that has been previously owned, or you want something that is still being developed, there are three major investment hotspots in Egypt: Cairo, the Red Sea, and the Mediterranean Coast.
Cairo
Emaar’s Uptown Cairo
The EGP 12 billion (US$2.2 billion) Uptown Cairo was being constructed by the developer Emaar Misr. The development offers several residential villages, a golf course, malls, sports and leisure facilities, as well as a business park. This is the first wholly foreign-owned developer to enter the Egyptian market.
Katameya Heights
The super-luxurious Katameya Heights launched prior to Uptown Cairo, covers an area of about 1.5 million sq. m. Katameya Heights, introduced in 1997, were purely local. Formerly a stretch of desert, Katameya Heights is now a large suburban area, with large houses, and has attracted enormous interest. The resort offers marvelous clubhouse, beautifully designed golf course and luxurious villas. Al Rehab City
Rehab City, a real estate development located in New Cairo, is being developed by Talaat Moustafa Group (TMG). The development is located on the Cairo-Suez road. It offers many shopping malls and a cinema complex. Rehab City is preferred by many upscale locals.
Madinaty
With a total budget of EGP 60 billion (US$11 billion), Madinaty is considered one of the biggest and most expensive real estate developments in New Cairo. Developed by Talaat Moustafa Group (TMG), it includes 80,000 residential villas, townhouses and apartments. There are also recreational and commercial areas, schools, medical facilities and hotels. Madinaty is adjacent to El Shrouq City. Construction began in July 2006, and is now fully functional.
Red Sea
Sharm el Sheikh
Sharm el Sheikh is now the country’s most luxurious and attractive resort. It has a vibrant nightlife, and boasts many nightclubs, the longest continuous bar in the Middle East, and a marina which can handle private yachts and sailboats. Its development has been led by tourism, and hotels such as the Ritz-Carlton have sold private villas. New residential developments tend to follow this hotel-based pattern.
Hurghada
Hurghada is the most popular seaside resort in Egypt with an international airport with direct flights to major European countries, as well as flights to Cairo. Property prices are slightly lower than Sharm ElSheikh, with lots of beach front property available for purchase.
Sahl Hasheesh
Eighteen kilometers South of Hurghada you’ll find Sahl Hasheesh Bay, where a purpose-built resort flanking 12.5 kilometers of sandy beach is being built. Covering 32 million square meters, by the time it is completed in 2014, it will have 20 5-star hotels and 8 golf courses.
Marsa Alam
Much further south and only two and a half hours from Luxor is the Port Ghalib project developed by Al Kharafi Group of Kuwait along 18 kilometers of shoreline. It opened in November 2007, with around 100 properties for sale, and a further 350 in the pipeline. Marsah Alam has a newly-built international airport, an international convention centre, a man-made lagoon with a myriad of sports facilities.
Mediterranean Coast
Marassi
www.marassi-egypt.com
The Marassi resort, worth around EGP9.92 billion (US$1.74 billion), is being developed by Emaar. It is located on a7-km coastline at Sidi Abdel Rahman on the Mediterranean near El Alamein. Marassi resort will offer up to 3,000 hotel rooms, luxury villas, and chalets.
Almaza Bay
Travco has developed Almaza Bay at Marsa Matruh on the Mediterranean between Alexandria and Libya. The resort has a total area of 5 million sq. m. and boasts about 2.5km of flawless beachfront in one of the most pristine beaches in the world. Even if you don’t plan on living in Egypt, there could be great financial benefits to renting property out to holiday makers. Tourists flock to the warm-weathered country twelve months of the year and are constantly looking to rent apartments or villas for their holiday. This rental market currently has the best profit yields in cities all over the country. Property rental could range from £150 (1,652 EGP) per week to £400 (4,405.05544 EGP) per week for apartment accommodation. Another market bringing in great profit potential is home resale, especially in hotspot holiday areas. In addition, foreigners look for apartments in Egypt’s main cities like Cairo and Alexandria where buying, selling, and renting is all accessible with a guaranteed profit return.
All types of property for sale in Egypt by private sellers and estate agents. Find your perfect villa, condominium or apartment in Hurghada, Sharm el-Sheikh.
Foreigners can buy property in Egypt. The first thing anyone wishing to purchase property in Egypt must do is find a good lawyer who specializes in
Egyptian property laws. Then they must grant the lawyer power of attorney so the lawyer can act on the buyer’s behalf when legalizing and obtaining
official documents from the Egyptian courts. There are payment options to consider, registration processes, and home insurance.