Country Guide: Egypt
Important information:
Egypt has recently experienced violent riots and there is ongoing political unrest. Be sure to check the Foreign Office website before travelling there. For up-to-date advice, visit FCO.gov.uk.
Why buy property in Egypt?
As well as its architectural marvels, fascinating ancient history and an idyllic year-round climate, Egypt's low cost of living is a big draw for many buyers. Rental returns are also good due to the popularity of the country as a holiday destination.
Egypt is not a traditional place for Brits to invest in a home, but the number of buyers is increasing steadily and the still-developing market can work in the favour of buyers.
What's Egypt's property market like?
Egypt's property market is very much in a state of expansion. Analysts predicted it would continue to go from strength to strength throughout 2010 and they seem to have been proven right. In addition, increasing numbers of large-scale property developers are becoming interested in the untouched land along the coast and in the deserts.
Speaking ahead of a Next Move property exhibition, Ahmed Ghozzi, chairman of event organiser ACG-ITF, spoke of how well Egypt's property market had performed in the recent past: "With incentives such as exemption from capital gains taxes, lower prices and close proximity to major European travel destinations, we can look forward to increased investment."
Popular areas in Egypt in which to invest
The paradisiacal Red Sea Coast is equalled only by Cairo in terms of popularity from overseas visitors. The destination features a purpose-built resort called El Gouna which contains numerous hotels, a golf course, a marina, school, hospital and shops, bars and restaurants – ideal for second-home buyers. Sharm el Sheikh is a popular diving region on the Red Sea Coast. In addition to being known as one of the best diving resorts in the world, Sharm also features an old town with traditional restaurants and cafes. Due to its overt popularity, prices here are already high and rising steadily.
Cairo is the heart of Egypt with regard to business. Properties here are more likely to be utilised as investments rather than holiday homes as Cairo could arguably be seen as more of a one-time holiday destination.
The southern city of Aswan attracts visitors due to its close proximity to the famous Nile. It also features many historical relics and archaeological wonders, meaning that development is likely to continue here for years to come.
The property-buying process in Egypt
After deciding on their property, the buyer must pay a ten per cent holding deposit. An independent solicitor must check the registration status of the property and also find out whether there are any debts registered against it. If it is not registered – a common problem in this part of the world – or there are outstanding debts, it is best just to walk away.
Once these two checks are done, it is important to ensure that the real estate taxes on the property are paid to-date. The sales contract can then be signed. Finally, you must register to purchase through the courts, which costs around £500.
