What is the real estate market like in Egypt?
The Egyptian real estate market has been experiencing a sharp price increase over the past few years, with house prices skyrocketing by a whopping 39.3% in the first half of 2024 compared to the previous year.
This is despite the country’s major economic turmoil. Most notably, the devaluation of the Egyptian pound (EGP) earlier in 2024 – the fourth devaluation in two years.
It has been suggested that Egyptians are investing in real estate despite its unavailability to gain some stability in the face of monetary and economic uncertainty.
Can foreigners buy property in Egypt? Yes, foreigners can buy property in Egypt if they have a residency visa.
However, they can only buy residential property, as the law does not allow foreigners to own non-residential property or land intended for agriculture.
There are also restrictions on foreign ownership of property in some parts of the country, so you’ll need to look into the area you’re planning to buy in.
Can you buy property in Egypt and get residency? There’s no direct route to permanent residency through buying property in Egypt.
In fact, you need to have a residency visa to buy property in the country.
How much are property prices in Egypt?
Now for the important question – how much does property cost in Egypt?
The good news is that property prices in Egypt are significantly cheaper than across the EU. In fact, they could be 70% to 75% cheaper per square meter depending on whether you’re buying in the city center or outside of it.
Although of course it depends on exactly where and what you’re buying.
Remember though that property prices will also vary depending on the type of property.
Another thing to note when figuring out the price for property in Egypt is that international transfers could get expensive, especially if the provider adds a margin to the exchange rate to convert your pounds. Consider checking out Revolut/Wise to securely handle your large transfers with mid-market exchange rates and low, transparent fees.
Where is the cheapest place to buy property in Egypt?
If you are looking for property on a budget, you may want to explore the property market in places like Aswan, Luxor, Hurghada and Marsa Alam.
All of them are known for their relatively affordable property prices compared to big cities like Cairo and Alexandria.
How can you find property in Egypt?
The two main ways to find property to buy in Egypt are through local estate agents or through referrals.
Estate agents and agents in Egypt
It is not necessary to use an estate agent to find property to buy abroad. But it can be useful, especially if you are moving to Egypt from the EU and are unfamiliar with the local property market.
Estate agents in Egypt are not regulated like in some other countries, so you should do thorough checks on any brokers you deal with through your solicitor.
What are some of the pitfalls of buying property in Egypt?
When buying property overseas, it’s important to be cautious and do all of your due diligence. You need to take all possible measures to protect yourself from scams and fraudsters.
The first issue to overcome is the language barrier. You’ll need to work with specialist agents and solicitors who speak both Egyptian and English.
Here are some other important things to be aware of:
Avoid using lawyers recommended by the real estate developer. It’s best to find your own independent solicitor, and make sure you check their credentials and experience carefully.
Your solicitor must check the title deeds and land register carefully, to ascertain the legal status and ownership of the property – and whether there are any conditions, claims or restrictions you need to know about.
Make sure you agree to all fees with your solicitor before signing anything. You need to understand all costs associated with the purchase, to avoid expensive surprises later on.
Don’t sign the sales contract unless you fully understand it – contracts may not be legally binding unless they’re bilingual.
If you’re buying off-plan, avoid paying the whole amount upfront – arrange a payment schedule for instalments instead.
How do you choose the right property in Egypt?
Your search criteria will determine which is the right property for you. The most important factors will be location, the type of home/apartment and of course, how much you can afford to spend.
If you’re not already living there, it’s worth making a trip to the specific town or city in Egypt you’re interested in. You’ll want to check out the local area and view properties, making sure to pay attention to local transport links and amenities.
Condition of the property
It’s a good idea to do as much research as possible before committing to purchase a property. A crucial step is checking the title deeds and land registry to ascertain the legal status of the property, as well as if any building conditions, charges or other restrictions are registered against it.
You might also want to commission a building survey or inspection, which will flag up any major issues and give you a better idea of what you’re buying.
Moving into your Egyptian property
Before you can get the keys to your new home, you’ll have a final few tasks to check off your list.
These include taking out insurance, setting up your utilities and carrying out any energy efficiency renovations.
Insurance
It’s strongly recommended to take out a buildings insurance policy starting from your completion date.
Setting up utilities
If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.
A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.
Energy efficiency renovations
Purchased an Egyptian property with an older heating system or minimal insulation?
From heating and insulation upgrades to double glazing and draught proofing, there may be things you can do to improve the energy efficiency of your new home.
After reading our comprehensive guide to buying property in Egypt for foreigners, you should be all set to start house/apartments hunting.
We’ve covered all of the most important information, including how the buying process works in Egypt andpitfalls.
And, if you want to save money while buying your new property in Egypt, make sure to use the Revolut/Wise account to send your international transfer. It’s not a bank account but offers many similar features.