Egypt checklist

Freehold laws
As per the existing property laws, foreigners are entitled to 100% freehold property ownership.

Egypt and the global financial crisis
According to experts, the impact of the international financial crisis has been minimal on the country's real estate sector thus far, primarily because the demand for housing units outstrips supply. "Egypt's real estate sector continues to perform well in contrast to those of other regional players that are struggling to cope with current market and economic conditions. Internally, residents believe in the stability of property investments and have a good grasp of changing business cycles," said Ahmad Ghozzi, chairman and CEO of ACG-ITF, organiser of Next Move Real Estate Investment Exhibition in Cairo. "There is still a large gap between supply and demand that developers can capitalise on. In addition, the general view towards the crisis is not as gloomy in this part of the world. Property owners and developers thus have a positive outlook on the industry's performance for this year," he added. "Egypt's real estate sector offers several investment advantages, such as the absence of capital gains and inheritance tax, affordable cost of living, a thriving tourist industry, a warm desert climate which attracts year-round rental opportunities, and close proximity to major European destinations."

Price watch
A study conducted by Global Property Guide found that property in Cairo is among the cheapest in the world. According to the report, the average price for prime residential property in Egypt's capital is $574 (Dh2,105)/m². The study also noted that property in Cairo could offer a rental yield of 12%.

Mortgages
In 2001, Egypt introduced a new mortgage finance law which allowed non-residents to get mortgages. Some of the mortgage providers in the country include the Egyptian Housing Finance Company and Taamir Mortgage Company. Residents can get loans up to 85% of the value of the property while foreigners can get up to 60%.

Oasis Marina
This is a beachfront development located in the up and coming Al Ahyaa area between Hurghada and El Gouna. The project, located close to a vast private beach, will comprise 660 apartments and a hotel. Oasis Marina will feature a variety of apartments, ranging from 32m² to 100m². Units will be supplied either on a finished or a turnkey basis, allowing buyers to move in without the hassle of having to source furniture and accessories. The amenities on offer at the development will include 24-hour security, satellite and telephone connection, air-conditioning, large swimming pools with kids' sections, main reception area offering hotel style service, health club with heated pool and beauty and gym sections, diving and aqua centre, four restaurants offering a variety of cuisines, various shops including a mini market, pharmacy, cafe with internet facility and business centre, large communal roofs with sea views. There will also be a shuttle bus service to the town, golf and other Oasis apartment complexes.

The first phase of this development is expected to be completed by the second quarter of 2010. Apartment prices start from Euro27,360 (Dh140,410).

Tourism sector boosts market

Egypt's relatively healthy tourism sector is boosting the rental market which, in turn, will help foreign property owners get better returns on their investments.

According to the UK-based travel agency Co-operative Travel, the number of UK holidaymakers visiting Egypt is constantly increasing. According to the agency, this is partly because it offers much better value for money than many European countries, as exchange rates are more favourable.

The travel agency selected Sharm Al Shaikh as a popular tourist destination in Egypt. Paul Collins of the BuyAssociation website recently revealed that the amount of interest in tourist property in Egypt is increasing all the time, particularly in areas such as Sharm Al Shaikh.

Address book
Oasis Marina: tel 002 065 3449723
Egyptian Housing Company www.ehfc.com.eg
Taamir Mortgage Company www.taamirmortgage.com