The complete buyers guide to Egypt

Background to Egypt
Egypt has a mystical and timeless appeal that has been attracting travelers from far and wide for many centuries. From the fascinating sights of the Pharaohs, on the banks of the Nile at Luxor, to the glorious beaches of the Red Sea at Sharm El Sheikh, this is a land of great contrast, where ancient and modern life exist side by side.

Past civilisations have left an indelible impression on the landscape creating what today must rank as one of the most spectacular sightseeing destinations in the world. Egypt has clear skies and bright sunshine all year round. English is the most widely spoken language after Arabic. The country offers nature and desert treks, great scuba diving and even golf, fishing and birding expeditions.

Economy
Egypt has one of Africa’s most prosperous economies. Starting from 1991, the Egyptian government has instituted an Economic Reform Programme that has taken Egypt further along the road to a market economy. This involves the implementation of a set of economic policies to unleash market forces to drive growth andemployment. Today, Egypt is one of the most stable emerging markets.
Egypt’s economy is on the road to recovery, with GDP growing by 5.6% in 2006 and another expected 5.6% in 2007. Meanwhile, petroleum and natural gas take up roughly 11% of Egypt’s GDP. Total exports of crude oil, natural gas, petroleum products and petrochemicals reached about 401 million ton in 2005/2006.

Weather in Egypt
One of the major attractions of Egypt to foreign tourists and investors is the weather. The coastal resorts along the Red Sea have year round warm weather. Days are commonly warm or hot, and nights are cool. There are only two seasons in Egypt: a mild winter from November to April and a hot summer from May to October. The only differences between the seasons are variations in daytime temperatures and changes in prevailing winds. In the coastal regions, temperatures range between an average minimum of 14° C in winter and an average maximum of 30° C in summer. Egypt receives fewer than eighty millimeters of precipitation annually in most areas. Most rain falls along the coast, but even the wettest area, around Alexandria, receives only about 200 millimeters of precipitation per year. See the current weather in Egypt here.

Tourism
Egypt has long been one of the world’s premier destinations. Its mix of ancient history, year-round sun and Red Sea diving attracting millions of visitors each year. Tourism represents the main source of Egypt’s revenue. In 2006, the number of tourists increased by 9% to 8.7 million.
Egypt has been always a country of tourism where Europeans used to visit and see its antiquities dating back to the various eras and civilizations. In the recreational tourism domain, there are scores of unique tourist destinations such as Sharm-el-Sheikh, Hurghada, Safaga and others. Moreover, Egypt is renowned for therapeutically and environmental tourism as well as other kinds such as Safari, conferences and sports. Egypt has a wide range of beaches situated on the Mediterranean and the Red Sea that extend to over 3,000 km. The Red sea has serene waters, colored coral reefs, rare fish and beautiful mountains.

Visa’s
Visas are required by British and other EU Nationals and costs around £10-£12. You can normally purchase a single entry visa at the airport on arrival. For frequent travelers you can acquire an annual multiple entry tourist visa.

Why Buy a Property in Egypt?

The close proximity to the UK and Europe means that Egypt has massive potential for the tourist market. This coupled with the year round sunshine on the Red Sea Riviera means investors will have a year round profit. The Egyptian government have slashed property related taxation to make the whole process of owning real estate more affordable & less complicated.

• Inward foreign investment is at an all time high
• Increasing annual visitor intake
• Good relationships with Western governments
• High rental incomes from short term tourist lets

Top 10 reasons to buy in Egypt

See the following link: Top 10 reasons to buy property in Egypt.

Property Hotspots in Egypt

Hurghada
The town of Hurghada, known as Al- Ghardaka in Arabic was founded in the early 20th century as a fishing village, with over 40km of coastal resorts and spectacular beaches. The Red Sea Riviera has fast become a community of mixed nationalities and cultures. The permanent summer weather and leisure activities, including desert safaris, diving and golf, make this the most popular resort in Egypt. With its crystal clear water, untouched reefs and a multitude of ship-wrecks, Hurghada has become one of the most popular diving and snorkeling destinations in the world. Nearby lies the resort El Gouna, an exclusive destination offering residents and tourists fantastic views of the desert, mountains and natural lagoons. At the heart of the El Gouna Resort is the Abu Tig Marina, the most beautiful harbour on the Red Sea designed around the spectacular El Gouna Golf Club, an 18-hole, PGA professional golf course. View a range of properties for sale in Hurghada

Sahl Hasheesh
Sahl Hasheesh (Green Valley) is a new resort spanning 12kms of prime, beach front land (32 million sq.m). The Sahl Hasheesh resort is situated between Hurghada (18km from its international airport) and Safaga, Egypt’s main Red Sea port. The two-lane Hurghada-Safaga highway lies about 6km inland running parallel to the coast. Luxor and the Valley of the Kings, a major cultural tourism destination, is just 200kms from Sahl Hasheesh by road or a short flight away. Thus, making it a highly accessible excursion option for Sahl Hasheesh visitors and residents. This resort, owned by the Egyptian Resorts Company (ERC) owned and managed by some of the biggest names in the hotel and tourism industry in Egypt. Once complete the resort will house 5 Golf courses, over 20 hotels of a 5* rating and over, a luxurious private Marina featuring 330 berths and will be the only one of its kind in the region that will be large enough, and deep enough, to take the biggest of yachts. A 7* Hotel, a sunken temple for divers, shopping and recreational facilities and much, much more. View a range of properties for sale in Sahl Hasheesh

Investment & Capital Growth

• Egypt’s, stockmarket which has been among the best performers -- up 640% in U.S. dollars over the past three years. That’s due both to the stepped-up pace of economic reforms in the country and an influx of petrodollars from Gulf states awash in cash from higher oil prices.
• Year-on-year capital appreciation: 20-30 per cent
• Projected capital appreciation for 2006/7: Up to 25 per cent
• Well-established and accessible ports on both Mediterranean and Red Sea, in addition to the Suez Canal and airports make Egypt fully integrated with the rest of the world.
• Highly recognised and acknowledged economic performance by international organizations and community has made Egypt one of the most favorable locations for long-term investment.
• Availability of highly trained and skilled labor at competitive wage rates.
• An efficient banking system and a dynamic and growing stock market.
• Political and social stability, favorable business environment and strong support by the government to private sector initiatives.
• Developed infrastructure and utilities, comprehensive and integrated transportation and communication networks

How to buy a property in Egypt
• Buying off plan property in Egypt is quite straightforward. The most difficult part is choosing the right property for yourself.
• Once you have identified a new development, chosen a property, and confirmed the price and package, you need to pay a reservation deposit. This is normally £2,000 and will secure the property and remove it from the market. This is normally non-refundable.
• On payment of the reservation the developer will issue you with a preliminary purchase contract. This is a contract between you and the developer and outlines the developers obligations to you and your obligations to them.
• We recommend that you assign an independent English speaking solicitor at this point. The solicitor will check into the developers details to make sure they have the correct building permits, they own the land, they don’t have any debts on the land, and many more essential checks. They also check the contracts to make sure they are fair to both parties.
• Once the solicitors have approved your contracts you need to sign them and pay your first deposit into the developer bank account or through your agents client monies account.
• Once the property is built you then need to register the property. A process which takes around 1 year.

Limitations
Current Egyptian law only allows foreigners to own two properties under each persons name and these properties should be kept for 5 years before reselling. You can sell the property before 5 years by sending an application to sell to the authorities.

Purchase Costs
The main bulk of the purchase costs are made up of Legal fees and registration fees.

There are two routes to registering your property in Egypt. The first is through the national land registry system. Registering your property in this way means you are limited to only purchasing two properties and not being able to sell within 5 years. You can however apply to sell your property at any time and there is normally no problem in being given permission to resell by the authorities. The second option involves registering your contract with the local notaries. This is the most common route and 90% of properties in Egypt are registered in this way. Registering your property within the locality only means you can register as many properties as you want and also sell whenever you want without applying. This route is also lower in cost.

The registration costs in Egypt depend largely on the size of the property and method of registration.

Property size up to:
• 100sqm: £500
• 200sqm: £1000
• 300sqm: £1500
• 1000sqm: £2000
Legal Fees £700
Other Fees £250

Finance & Mortgages in Egypt.
Mortgages are available for foreigners at rates of around 6.5% to 13%. However these are quite difficult to get hold of and most investors rely on releasing equity from existing property in the UK. This option is quicker, cheaper and much easier to arrange. This also means that you can aqcuire financing for a property through the construction stage (Egyptian mortgages can only be applied for on completion).

Legal fees:

Legal fees depend largely on the solicitor that you use. You can use specialised solicitors in the UK who are able to deal with properties in Egypt for you, or you can use a solicitor in Egypt at a fraction of the cost. We recommend using a solicitor from the approved list on the British Embassy website. Solicitors fees start from about £350 for the checking of the preliminary contracts.