Egypt Real Estate

2006-08-28T00:00:00.000-07:00

Property Investor information for: Egypt

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 the resorts of the Red Sea with some opportunities existing in the major urban and tourist centres as well.

Considering the attractions Egypt has to offer, prices are low with some good quality apartments available on the coast for less than £30,000. 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 for overseas property investment, we believe Egypt is one of the few gems left in the worlds emerging property markets. With more exclusive resorts and deveopments in the planning stages Egypt property prices are set to rise.

http://www.thepropertyinvestor.net/reports/downloadarea.php?id=EG

2006-08-27T23:55:00.000-07:00

Buying a property in Egypt: Purchase procedure

Buying Process
Five Fundamental Steps to Purchase a Real Estate Property in Egypt

The Egyptian real estate sector has recently experienced a substantial growth partially stimulated by relatively strong demands by expatriates and foreign national to purchase properties in Egypt. The purpose of this is to provide a brief overview of the regulatory regime regulating real estates' purchase and transfer of ownership under Egyptian law and outline the “ five fundamental steps” that any potential purchaser should carefully consider prior to buying a property in Egypt .

Brief Overview
The transfer of title of real estate in Egypt is completed through two distinct phases, namely the execution of a private sale and purchase agreement between the seller and the buyer followed by the registration of title of the purchaser with the Real Estate Department and Public Notary. Foreign nationals are entitled to purchase and own real estate properties in Egypt subject to the restrictions stipulated by the Foreigners Ownership Law (law 230 for the year 1996). The said law restricts foreign nationals' ownership of real estate in Egypt to i) No more than two properties; and ii) Each property should not exceed 4000sq . Meter.

Without prejudice to said law, the purchase of real estates in Egypt by foreign nationals follows the same procedural course of action as it is the case for Egyptian nationals. In relation thereto, there are five fundamental steps that should be followed by any prudent purchaser, which are as follows:

Step 1:
Check the registration status of the property and review of title documentation, as outlined above, the transfer of real estate properties is perfected through the registration of property with the relevant authorities. This said, it is quite common in Egypt for property owners not to register their title in order to avoid paying the governmental registration fees amounting to 3% of the value of the property. Hence, the first seminal step to be undertaken when purchasing property in Egypt is to check said registration status. The status of the registration is determined through the review of the title documentation. Further more, a comprehensive review of the title documentation should be undertaken in light of the original title documentation and not through copies, in order to ensure that no fraudulent title documents are provided by sellers.

Step 2:
Check if there are any pledges or mortgages registered on the property. Under Egyptian law, mortgages and pledges are recorded on the property itself and are not affected by the transfer of the title. Hence, quite commonly a person who has just purchased a property can discover that his newly purchased property is pledged to a third party. As such factor represents a serious exposure to your title, it is imperative that you ensure that the property you wish to purchase is clear and free from any third party rights such as mortgages and pledges. This check is undertaken through the review of the Official Pledge Registers at the Notary Public located in the district of the property.

Step 3:
Ensure that all real estate taxes levied on the property are fully paid. Under Egyptian law exists a real estate tax which is levied on the property itself and not on the owners of the property. The rate of said tax differs as per the location and the standard of the property itself. This tax is not affected or prejudiced by the transfer of the legal owners and hence it is common for a new purchaser to discover- after completion of the property purchase- that he has to pay certain amounts to the Real Estate Tax Authorities. Accordingly, any prudent purchaser should instruct his attorneys to check the status of payment of the said tax prior to purchasing the property.

Step 4:
Drafting and bilingual comprehensive sale and purchase agreement. The execution of private sale and purchase agreement between the seller and the purchaser is the first phase required under Egyptian law to transfer the title. Quite commonly the seller produces an Arabic draft which in many cases is not readable by the expatriate and does not include all the guarantees, representations and protections that a prudent purchaser requires. Hence, it is highly recommendable that a comprehensive bilingual sale and purchase agreement is produced and/or reviewed by the purchaser's lawyers in order to ensure that no contractual exposure persists.

Step 5:
Registration of purchaser's title, the registration of the title is the second phase required under the Egyptian law to transfer the title from the seller to the purchaser. As a matter of fact, the execution of the sale and purchase agreement creates- from a purely legal perspective- legal and valid obligations between the seller and the purchaser but does not create any rights vis-à-vis third parties and the relevant authorities. In other words, the sale and the purchaser agreement can be used to counter any claims by the seller of the property but does not safeguard the purchaser from potential claims from third parties or the governmental authorities. The registration of the property is the procedure designated to safeguard the purchaser from the claims from third parties and governmental authorities. There are two courses of action to undertake the registration of property which differ as per the initial registration status of the property. The two courses of action can be seen as follows:
• Registration of the property through the Real Estate Department and the Notary Public.

This mechanism is commonly used in the connection with the registration of title for properties which were initially registered by the sellers. The timeframe associated with said procedures differs as per the status of the completeness of the registration documentation but in all cases would remain in the range of three to six months. When agreeing with the seller on the purchase price, the three percent registration fee should be taken into consideration; as such rate is calculated on the stipulated price of the property. We strongly do not advice on illusionary smaller price on the contract to attempt to decrease the registration amount as such action creates a substantial future exposure on the purchaser.
• Registration of the property through the courts, the second course of action available to register a property is a court action against the seller of the property requesting the court to issue court ruling confirming the validity of the sale of the property and claming the purchaser as the legitimate owner of the property. The name of such court action is “claim requesting confirmation of the validity of the sale”. This course of action may take six to nine months as per the level of cooperation that the purchaser receives from the seller. This course of action is used primarily to register properties located in the new urban communities and Sinai.

Conclusion
Based on the above, we urge all expatriates who wish to purchase a property in Egypt to follow the five steps outlined above in order to safeguard themselves from various potential problems and obstacles which may prejudice their title or their quiet and peaceful enjoyment of their newly purchased property.

2006-08-27T05:35:00.000-07:00

Egypt Property Investor's Country Guide

The Egyptian property market is particularly attractive to overseas investors along the Red and Mediterranean Sea coasts, and also in the major cities of 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.

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.

2006-08-27T05:18:00.000-07:00

Egypt Real Estate Investment Potential
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.

http://www.amberlamb.com/index.php/a/m/real-estate-investment-potential-in-egypt/

2006-08-27T05:07:00.000-07:00

Egypt Property Buying Process

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. This is our guide to the property buying process in Egypt for real estate investors.

Hernando de Soto, the president of the Institute of Liberty and Democracy, recently issued a report that explains why so few properties are officially registered in Egypt; according to his research the legal process to acquire permission to build property and then officially acquire the title deed to the land on which the property has been built requires no less than 77 bureaucratic procedures at 31 different agencies and it can take anywhere between 6 and 11 years. This has ensured that only 10% of properties in Egypt are officially registered.

If you then add to this the fact that the property registration fee until very recently was 12% of the property’s net value (it’s now 3%) you can see just how expensive and time consuming following the correct legal channels can be in Egypt and you can realize why so few properties have been registered and have title deeds. As stated the government of Egypt under Prime Minister Nazif is working hard to promote investment incentives and make things like the freehold ownership of real estate in Egypt easier to acquire for foreign invesotrs. As the procedures improve so the appeal of the country increases and so property prices increase in direct relation.

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.

http://www.amberlamb.com/index.php/a/m/guide-to-the-property-buying-process-in-egypt/

2006-08-27T00:37:00.000-07:00

Own a property in Egypt

http://www.infinityqatar.com/egypt.htm

2006-08-27T00:34:00.000-07:00

The Property Market in Egypt

Holiday homes in Egypt are something of a novelty, but already you can find developments that out-Vegas Vegas: exclusive, monumental communities that revel in this country’s ancient heritage. And with the Egyptian government going all out to attract international investment, things are looking promising for the adventurous buyer

Prices for Egypt Property £26,700 to £143,650

The Property Market in Egypt

It’s not so long ago that Egypt was the destination for Baedeker-brandishing maiden aunts. But Agatha Christie-style tours of ancient sites are rapidly being sidelined by beach and activity resorts on the Red Sea and the Med. Developers are offering properties close to diving and sailing centres and superb beaches at prices as low as £20,000 for a one-bed apartment. And although off-plan developments may not always have prime locations, values increase rapidly once construction is complete – good news for investors.

The powerhouse of this leisure revolution is Sharm el-Sheikh, at the tip of the Sinai Peninsula facing Saudi Arabia.Curiously enough, it was actually the occupying Israelis who got the ball rolling for Sharm’s tourism industry, in the late 1960s. After Egypt regained control of the peninsula in 1982, a steady trickle of investors took up where the Israelis left off – but it was the 1990s that really saw the boom in holiday-property development. Over the past two decades, Sharm has gone from being an isolated fishing port to a luxury holiday destination, with international developers and major hotel chains clamouring for ever- broader swathes of the coast. This trend,spurred on by official encouragement of foreign investment, is also in evidence along the Mediterranean coast and in select residential satellites of Cairo, packed to the seams with golf courses,tennis courts and swimming pools. The developer Emaar (which has been instrumental in the phenomenal property explosion in Dubai) has also entered the arena,and will bring added sophistication and interest to the market. Prices are still low, and capital growth is yet to reach anything like the levels witnessed in Dubai, but the market is growing ever-more ambitious...and ever-more attractive.

http://www.infinityqatar.com/egypt.htm

2006-08-27T00:29:00.000-07:00

Real Estate for sale in Egypt

The Egyptian Real Estate 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 real estate market’s star is rising fast. See our apartments for sale in Egypt here.

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.

http://www.infinityqatar.com/egypt.htm

2006-08-27T00:28:00.000-07:00

Thinking of Buying Property in Egypt?

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.

So now are you thinking Egypt?
Almost the same air travel time as the Canaries from northern Europe (4 hours) but with one exception - year round glorious weather!

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.

Winter Sun - Keen to escape the ravages of a chilly winter?
Where the only ice comes in a drink, then enjoy the welcome waiting for you in Egypt.

The Sun always shines in Egypt
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

http://www.infinityqatar.com/egypt.htm