Although a fairly new phenomenon, investing in property for sale in Egypt is rapidly gaining momentum. This major growth in Egyptian real estate is in part due to the legal, fiscal and commercial liberalisation that is being implemented by a government keen to attract inward investment.

Foreign investors have the right to own Egyptian real estate and recent law changes means that many developments now offer properties on a freehold basis (Except Sharm El Sheikh properties which are currently only available on a rolling leasehold basis). Although some care should be taken when buying older properties in Egypt, the vast majority of newer real estate developments tend to be focused in the main cities and resort areas and these are far more geared up to the international property market.

Easing the Path

The Egyptian authorities are committed to attracting more inward investment into all sectors of the economy, including the Egypt real estate sector, therefore the path is continually being eased for overseas investors.

Most foreign investors are looking to buy off-plan investment properties in Egypt as they usually offer excellent payment plans and much higher build quality. Regardless of what Egyptian property you wish to purchase, Arabian Sands recommend you seek out the services of a bilingual lawyer who is a specialist in Egyptian property law, search procedures and sales negotiations.

Bargain Basement

Investor buying into Egypt's emerging property market now may well be buying into a sustained period of growth, exactly the opportunity that appeals most "in the know" investors. What is more, Egyptian property prices are currently at bargain basement levels. With ever-growing interest in Egyptian real estate, there has never been a better time to take the plunge.

The Buying Process

The process of buying property in Egypt is quite similar to that of Spain and the UK. To reserve your Egyptian property, a reservation fee is required (typically €1500 Euros).

1. 1. Following the signature of the PPC, the purchaser will have to transfer a deposit as a first instalment (usually within 30 days from the signing of the contract).
2. 2. The deposit paid by the purchaser varies from development to development - A deposit of between 10% and 30% of the purchase price is typical.
3. 3. Upon reception of the funds the developer will countersign the contract which details the terms and conditions of the sale and return a copy to the purchaser.
4. 4. The fee for registering your property with the Egyptian Courts varies depending on the development, but you should budget £300 - £700 (GBP) for this service.
5. 5. Closing costs for Egyptian property buyers should not exceed 3% of the purchase price. This includes all legal fees, power of attorney (required if you do not wish to visit Egypt for the purchase) and property registration fees.

Egyptian properties carry a legally binding, 10 year warranty

Both building contractors and architects engaged in the design, supervision and/or construction of any permanent structures are legally liable for a 10 year period, for the collapse of or any defects arising in such structures. Happily for the investor in properties in Egypt, the 10-year warranty is a statutory requirement and cannot be contracted out of in advance. Liability is absolute and there's no obligation for the owners of Egyptian properties to prove fault or negligence by the contractor or architect.

Note: Property laws in Egypt are subject to ongoing reform. This process is in line with the government's aim of easing the way for overseas investors. Arabian Sands are in constant contact with specialist Egyptian lawyers and will keep our clients updated on any changes that might have bearing on their purchases.

Important: Arabian Sands only offer Egypt properties from reputable developers and only after all possible due diligence checks have been carried out.

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Egyptian Mortgages

Another recent boost to buying homes in Egypt is the introduction of mortgages which are now available to Non-Egyptian property investors. Our international property advisors here at Arabian Sands will be please to help you arrange your Egyptian mortgage. You can contact them on: (0034) 952 765 993