Your number 1 partner when buying property abroad
It will surprise many that the fascinating and mysterious country of Egypt is an amazingly large country (386,874 sq miles) four times the size of the UK, however, because of the arid nature of the landscape, only about 5.5% of the surface area is actually populated and this is concentrated along the Nile Valley and Delta, in cities such as the capital Cairo and Alexandria.
Egypt lies in the south-eastern corner of the Mediterranean, with the
northern coast bordering the Mediterranean Sea and the eastern coast the
Red Sea. The life giving River Nile divides the country in two, feeding
a lush green ribbon of the cultivated Nile Valley where 90% of the population
reside, with the remainder living as Nomads within the desert and small
pockets on the Mediterranean and Red Sea coasts.
Reigning as one of Africa’s most prosperous economies, Egypt is fortunate
to have a thriving tourism industry which is its largest money earner
and also benefits from exports of oil and natural gas products. Classified
as a “middle income” country, it continues to record high economic growth,
an important factor when considering property investment.
TOP 10 REASONS TO INVEST IN EGYPT
The number one tourist destination in the Middle East, Egypt is also the oldest tourism destination in the world, dating back to around 3200BC, and is the country’s key money earner. With many of the world's greatest treasures, the Pyramids and Sphinx at Giza, Valley of the Kings, and Karnak temple near Luxor, it is no wonder that Egypt attracts millions of tourist's each year. The government are improving the infrastructure to ensure the tourism industry continues to grow, and the year round climate not only attracts sight seers but the coast lines and coral reefs are highly popular with divers worldwide.
As well as wooing the tourism market, the Egyptian government has streamlined the purchase process for property, visa applications, title deeds and all other relevant documentation for international investors. Although the property market is in its early stages, it is set for a period of prolonged growth, with an anticipated capital appreciation ranging from 15% - 25% dependent upon area and estimated rental yields of about 16%. The best investments, showing the highest return (unto 10 times more that other areas in Egypt) are in the hot spots of the Red Sea coast and Sharm El Sheikh. Local planning laws are favorable here and they limits on high rises with no property over three stories maximum and this is already the world's 4th most popular tourist destination.
Foreign Nationals are permitted to purchase and own up to two completed properties in Egypt, with total surface area of less than 4,000m², however there is no limit on how many off-plan properties an investor can own, as long as they are “flipped” prior to completion. The Government now recognizes the huge value foreign investors have in property investment for the success of the economy and have put plans in place to encourage overseas buyers and have established new laws and purchase procedures, to make it more secure. An example of this is that the government can no longer impound or nationalize any property, a practice that stood for centuries.
Property investment in Egypt carries no inheritance or capital gains taxes. Although there are currently no mortgage facilities available to foreign nationals in Egypt, this situation is about to change, with the full implementation of a new mortgage law.
Anyone buying property is advised to instruct a lawyer within Egypt as the purchase process is a bit more complicated and it is important to ensure that the property registration is carried out properly. Once your lawyer has power of attorney, he can act on your behalf to ensure title rights to your registered property and provide you with a deed and a proof of ownership.The Red Sea resort of Hurghada with it's new super resorts, provide the perfect blend of ingredients for a beach holiday plus the added value of golf and diving in the crystal clear waters of the Red Sea, where spectacular coral reefs teem with marine life, under warm sunny skies and the up market gated suburban complexes in New Cairo offer a superb city location for ex pat professionals and wealthy Egyptians looking for grand mansion houses.
The main currency is the Egyptian Pound, and there are no restrictions on transferring your money out of Egypt. Although Arabic is the official language. English and French are widely spoken
Only 5 hours away from most European cities Egypt is very accessible, especially for sought after winter sun and can be reached by direct flights from the UK by many of the main flight operators flying directly to Cairo´s International airport and Hurghada International, close to the new resorts and developments.
Ideal for sun worshipers, Egypt is a country bathed in almost continuous sunshine throughout the year, with hot and cool nights. The country only has two seasons a mild winter from November to April with average temperatures of 14°C and a hot summer from May to October, with average temperatures of 30° C, made bearable by the prevailing northern winds. The water temperatures are pleasant year round and make coral reef diving and snorkeling very popular on the coast and attract continual tourists which makes property here excellent investment for all year round rentals.
Egypt has a landscape which is surprisingly varied with many striking contrasts, that wouldn’t exist today without the River Nile. A country divided, the Ancient Egyptians described the two types of land as the “black land” which was in the fertile basin, on the banks of the Nile, rich with black silt and was ideal for agriculture. The other side was the “red land” which was barren desert (Sahara), and protected the Kingdom of the Pharaohs from western threats, also providing a source for precious metals and semi-precious stones.
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