Buying property:

1. Cash payment at the time that the buyer is signing the sale/purchase contract
2. Down payment made at the start of the purchase and with an agreement between the vendor and the purchaser on the terms of the remaining payments.
3. By bank transfer - this can take between 3 days to 21
   
   • Transfers need to have the following information:
   • Name of the holder of the bank account
   • Name of the Bank
   • Branch address and telephone numbers
   • Bank SWIFT code
4. If the buyer is not in Egypt to finalize the purchase he can appoint his legal agent to complete the purchasing procedure on his behalf.

Property documents:

• The original land contract form the city council
• If the property is registered then the original copy.
• The original powers of attorney from the initial person that bought the land to the one that is selling the property directed to the buyer.  So that a chain of ownership is clear.

The Property Market in Egypt

Red Sea properties are by far the most popular amongst foreign househunters (although the Mediterranean resorts are good for those on smaller budgets) and this has been reflected in impressive house price increases. “The property market has performed extremely well in the last year. The Red Sea area has seen prices increase by over 25 per cent,” says Geoff North, Director of Superior Worldwide. As a nation of property fanatics, Britain is up there with the best of them when it comes to snapping up these hot properties. “The number of British buyers is on the increase,” says North. “In 2006 British buyers increased by over 50 per cent compared to 2005. They’re attracted to value for money, low running costs, excellent transport links from the UK, superb climate, strong rental demand and high capital growth.” And with the demand for holidays on the Red Sea and increasingly on the Mediterranean coast showing no sign of abating, Egypt’s property market looks set to thrive. “The future looks bright,” says North. “Property prices are still good value for money. You can purchase a Red Sea beachfront apartment for as little as £30,000. Tourism continues to grow, and with a year-round climate the rental potential is fantastic,” says North. However, real estate registration in Egypt is baffling, so having a lawyer at hand is highly advisable. “The property registry in Egypt is out of date and incomplete,” continues North. “Furthermore, the Egyptian government’s commitment to attracting foreign investment into real estate means the path is being eased. Anyone considering investing should always seek a reputable estate agent,” says North.

Top tip
The Egyptian government has so far managed to avoid levying the kind of swingeing property taxes that we are used to paying in the UK. There is no capital gains tax payable on the sale of properties, and if you are a British citizen living in the UK then you’ll also avoid inheritance tax on any Egyptian properties that you decide to pass on to your loved ones.

Buying facts:
Typical property price: from £30k for a beachside apartment, £80k-£200k for a two-bedroom coastal villa
Year-on-year capital appreciation: 20-30 per cent
Projected capital appreciation for 2006: Up to 25 per cent
Popular buying areas: Hurghada, El Gouna and Sharm-el Sheikh
Average rental return: 9%
Agent fees: 5 per cent, split between buyer and seller
Legal fees: Up to 1.5 per cent
Property Registration Duty: 3 per cent plus survey fees
Capital Gains Tax: None

Climate details
Egypt has a desert climate, with hot days and cool nights. There are just two seasons: A hot, dry summer from May to October and a cooler winter from November to April. On the coasts, minimum winter temperatures are around 14°C, and maximum summer temperatures are around 30°C. Alexandria in the north is popular for its cooler temperatures, while Aswan in the south can fluctuate in summer from 10°C at night to 41°C during the day.

© The Brooklands Group, 2005