Introduction - on this page you will find links to
details of Egyptian villas and
property for sale in Egypt,
Egyptian holiday rental accommodation and shared housing in
Egypt. Egypt is in North Africa, and includes the Sinai Peninsula, linking
it to Asia. Egypt borders Sudan to the south, Libya to the west, the Gaza Strip
and Israel to the east. The north coastline is on the Mediterranean Sea and the
eastern coast on the Red Sea. Major ports are Alexandria, Port Said, and
Damietta on the Mediterranean, and Suez and Safaga on the Red Sea, with the Suez
Canal linking the Mediterranean and Red Seas. Egypt has a large population of
over 75 million people, most of whom live near the bank of the River Nile. Much
of the country is desert (the Saraha) and the only land capable of being
cultivated is therefore near water. Around half of Egypt's residents live in
urban areas, with the majority spread across the densely populated centres of
greater Cairo, Alexandria, Aswan, Luxor in the Nile Delta. Egypt has very little
rainfall and summer temperatures can reach 50o.C, with thel ‘Khamsin’ wind
blowing in from the Sahara in April each year. Currency is the
Egyptian pound, known in Arabic as the gunaih, and is divided into 100 piastres
(qirsh) or 1000 milliemes (malleem).
The Egyptian
Property Market -
Egypt is one of the rising stars for property investors. It offers very good
value for money, a relatively new property market, together with a strong annual
tourist industry. Prices have been static until 2005, when foreign investors
first became able to purchase freehold property. Prices are now beginning to
take off, particularly in rental property and there is active new build
development. The north coast of Egypt spreads from Alexandria in the east to
Libya in the west. Popular places to buy are between Alexandria in the east and
El Alamein. On the Red Sea, Sharm el-Sheikh on the edge of the Sinai desert is
now an established property area. Known for its excellent diving with a constant
supply of tourists, property prices in Sharm el-Sheikh are now the most
expensive of all the coastal areas, but still offer value for money for location
and potential. On what is known as the Red Sea Riviera, some promising upmarket
resorts such as El Gouna, with its marina, are springing up along the desert
coastline. Houses there are built with pastel-coloured domes and arches, and the
marina comprises canals and waterfront homes linked by stone bridges.
If you are looking for buy-to-let property,
then the resort of Ain Soukhna with its 50 kilometres of nearby beaches, only an
hour and a half from Cairo, and a weekend retreat for local Cairo residents, is
a good buy. Hurghada is further south and is well known for its scuba diving and
golf courses. It has a vibrant nightlife, cheap bazaars and internet cafes.
Nearby is the upmarket Soma Bay resort, which has a Sheraton hotel and an
excellent golf course. If you want to buy in a quieter area, then Safaga,
further south, can be cheaper. A major diving and windsurfing spot, Safaga is a
good base for sightseeing, especially Luxor. Further south still is Marsa Alam,
with its own airport. Not long ago a fishing village, some property experts are
saying that this will become the new Sharm el-Sheikh. Two areas to take care
over: Egypt’s property registry is still out of date so check that your land is
on registered land, particularly if you are buying off-plan. Older property
should already be registered but getting hold of title deeds in Egypt can take
time and even prove impossible. Property is bought freehold in Egypt, except for
in Sinai, which includes Sharm el-Sheikh, where you buy with a 99-year
leasehold.
The second area to be aware of is that, unlike
established property markets such as Spain and France, building standards can be
poor and if you are buying new build, it is vital that you employ a structural
engineer to check out construction techniques. Egypt is on a number of fault
lines and earth tremors are regular, so do a check.
How to Buy a Property for Sale in Egypt -
Before you can purchase a property in Egypt, you will need to get a residence
visa, granted for either 3 or 5 years. You will only be able to buy up to 2
properties with a maximum of 4,000 square metres between them. Anything more
requires the setting up of an Egyptian company. All legal paperwork relating to
the purchase of Egyptian property is written in Arabic, so always use an English
speaking lawyer and ensure that you get an official translation of all
documents. Real estate agents in Egypt are not regulated, so ensure you get
solid professional advice.
Registration of Egyptian property is a
minefield: until recently registration fees were as high as 12% and the process
bureaucratic, taking several years to complete. Fees are now just 3% and legal
processes are now much more organised to meet overseas investors’ needs. When
financing your property you will need to allow for property registration fees,
conveyancing fees, and stamp duty, each around 3% of the property price. Buyers
also have to pay a small inspection and measurement fee, but this is nominal. If
renting out the property you will be subject to a maximum of 20% income tax on
income of 5,000 Egyptian pounds a year. But as Egypt has a Double Taxation
Treaty with the UK, you can elect to pay this in the UK. On sales, 2.5% tax is
payable on the sale price. Currently property in Egypt is not subject to
inheritance, VAT or capital gains taxes. A new property tax of 10% is to be
introduced with effect from January 2009. Due to age-old Islamic
banking rules, until recently it was not possible for foreigners to take out a
property loan. Egyptian banks now offer mortgages, but if you do decide to
borrow from an Egyptian based bank, you will need to fund up to 85% of the
property purchase price and be able to repay within either 20 or 30 years.
Once you have decided on a property, before
you pay over any deposit (usually 10%) it is vital to get your lawyer to take
the following checks. He will need to ensure if the property is registered and
this may take up to 4 months; the process will identify if there are any
outstanding debts on the property. If there are, your lawyer will advise you not
to proceed. You will also need to ensure that all real estate taxes are paid and
up to date. He should then advise you on the content of the sales contract which
is not valid unless it is bilingual. Finally expect to pay in the region of £500
to the courts when you register the property. Estate agents fees are
usually about 1.5%, lawyers’ fees around 2.5% and government purchase taxes
2.5%.
History and Cultures of Egypt - Egypt, ‘Land of the Pharaohs’ is famous
for its ancient civilization and for some of the world's most famous monuments,
including the Great Sphinx. The southern city of Luxor contains a particularly
large number of ancient artifacts such as the Karnak Temple and the Valley of
the Kings. Today, Egypt is widely regarded as an important political and
cultural centre of the Middle East; and its links with the European west form a
bridge with the Arab east. One of the wonders of the world are the great
Pyramids, estimated to have been built between 3000 and 1640 BC. There are about
100 of these, Giza being the favourite and most renowned site for tourists.
Population Demographics - Egypt is perhaps the world’s
oldest continuously existing civilisation, unified around 3100 B.C. In classical
times it was conquered by Greeks and Romans, and the Arab conquest in the 7th
century began the gradual process of making most Egyptians Arabic-speaking and
Muslim (Jewish and Christian minorities have persisted). Over 90% of Egyptians
are Muslim (most of the Sunni denomination) and the religion’s practices and
beliefs influence all aspects of daily life. In 1952 Egypt’s President Colonel
Nasser overthrew the monarchy and declared the country a republic. Today Egypt
could be described as a republic with limited democratic features as the
President role still has control over policy. In Egypt’s education system there
are generally two types of government schools: Arabic schools and Experimental
Language schools. The Arabic academies teach the national curriculum in Arabic,
while Experimental Language schools provide most of the curriculum in English,
and add French as a second foreign language. Schooling is divided into three
stages: basic (Marhalet Al-Taaleem Al-Asassi, which includes a primary and
preparatory schooling), secondary (Marhalet El-Taaleem Al-Thanawi) and further
education. Many Egyptian children do not attend primary school, and education
after the secondary stage is dependant on each student’s abilities. Egypt has a
very disorganised healthcare system, and there are no reciprocal healthcare
arrangements with the UK and the EU. Although the hospitals and secondary health
systems are of an excellent quality, primary care is poor and under-funded.
Essentially it is necessary to pay for treatment. Although the cost of
medication is cheaper by UK standards, treatment is more expensive, although of
a very good standard. Private medical insurance cover is therefore essential.
How to Get There - Egypt is two hours ahead of the UK and has six major
airports at Cairo, Alexandria, Luxor, Aswan, Sharm el-Sheikh and Hurghada.
Flight time from the UK is around five hours. You will need a visa. Easyjet now
fly to Sharm el-Sheikh, and others should follow. There is a good road
network covering the Nile Valley and the tourist areas of the Mediterranean and
Red Sea coasts, and the Sinai. Rail lines run from Alexandria to Aswan.
Tourism and Entertainment -
Egyptian cuisine is good, combining many styles of Middle Eastern cooking.
Although a Muslim country, alcohol is available in tourist areas. It is
not advisable to drive in Egypt, which has one of the highest incidences of road
fatalities in the world. There is a good rail and air network, or some travel
can be done down the Nile on cruise ships or on a traditional felucca boat.
There is a wide range of tourist trips available. The country abounds in
ancient ruins, monuments and spectacular scenery. Places to see include the
painted tombs in the Valley of the Kings, the Pyramids and the Nile, and busy
Cairo, known as the Triumphant City. In most large towns you can find
nightclubs and good restaurants and bars. Shopping is good in Cairo,
particularly in the old bazaar, Khan-el-Khalili. Here you will find
reproductions of antiquities, as well as jewellery and spices.
