Will the Egyptian real estate market repeat the phenomenon of Turkey? Experts on prices, prospects, and investments in Egyptian apartments

Housing sales in Egypt are on the rise—in April, the number of residential real estate sales and purchases increased by 7% year-on-year. In this case, the government of the country is taking steps that should contribute to the further development of the market and attract investors. Could there be a “Turkey effect” in Egypt, where due to the boom in demand, entire neighborhoods are closed to foreigners? How is the situation in the Egyptian real estate market in general? What projects are built, and what kind of prices can one expect? We asked local market experts about all the interesting aspects. 

In recent months, there has been quite a lot of news from the Egyptian authorities concerning the attraction of tourists, foreign investors, and businessmen. Among them: 1) plans to introduce multiple visitor visas for 5 years; 2) a reduction in the amount of investment required to obtain Egyptian citizenship; 3) plans to issue a one-year residence permit to those who establish a company in the country; 4) and, of course, the recent news about lifting restrictions on foreigners buying real estate. We asked local realtors how all these measures are already reflected and will be reflected in the future in the Egyptian real estate market; what new projects are built in the country, what is the situation on the market of the new capital, and for how much you can buy an apartment in Egyptian cities.

“It is unlikely that In Egypt will be restrictions on the purchase of the real estate by foreigners”

As it turned out, the news that foreigners can currently own no more than two properties in Egypt, both of which must currently be in different cities, was not entirely accurate information. Here's how realtor Olga Kazimirova commented on it: 

— In Egypt, there were no restrictions on the purchase of real estate by foreigners, and there were no restrictions on the number, either. We can adjust this news as follows: there were restrictions on the number of Green Contracts that foreigners can get for their property, which means putting the objects in the state register. But no one was stopped by this when buying real estate. Those who were planning to buy 2, 4, 8, or more objects bought them.

It is also completely wrong that the facilities had to be in different cities. No. In one city, let's say Hurghada, one foreigner has several properties, and everything is fine with that.

As for the situation in Turkey, the opposite is true in Egypt—there is a different flow of customers, which includes not only Russian-speaking people but also Europeans and residents of other Arab countries. According to experts, it is unlikely that there will be restrictions on foreigners' purchases in Egypt. Moreover, today in this country, on the contrary, there is a policy of attracting foreign capital.

For example, as you have noted, the minimum threshold for investment in real estate for obtaining Egyptian citizenship has recently been lowered from $500 thousand to $300 thousand. At the same time, it is allowed to pay this amount in installments over the course of one year. But there is an important point: using the paragraph “purchase of real estate” to obtain citizenship, you need to buy objects from major developers—their list can be further clarified with your lawyer.

“In Hurghada, you can find an apartment for $10,000 as well as for $200,000.”

Realtor Irina Girnichenko told us about the demand, real estate prices, and liquid objects in Egypt:

— Demand for real estate in Egypt increased after the conflict in Ukraine and the earthquake in Turkey. The boom in Egyptian real estate happened last fall, which can be called incredibly fruitful.

In general, quite a lot of people buy property in Egypt because construction is going on, new projects appear, and there is no stagnation. And buying property in Egypt is not difficult; you only need money and passport information. And no one asks about the origin of the money when buying.

On a side note. Buyout houses in full ownership are not possible in all areas of Egypt. On the Sinai Peninsula (Sharm El Sheikh), there is only an option for long-term rentals for 55 years. In this case, if you buy a home under such a scheme, you can sell, rent, or inherit it.

— The most expensive and cheapest housing is in every city in Egypt because there are both ordinary neighborhoods and high-end ones. For example, in Hurghada, you can find an apartment for absolutely every pocket—both for $10,000 and $200,000.

The new capital of Egypt is still under construction; some houses have already been built and are undergoing finishing work, while others are only at the stage of excavation. In general, the prices under construction start at $100,000, but there are also proposals for $50,000. In the already completed homes, apartments are sold with the possibility of installment payments for 7 years.

In the region of the Red Sea, I can say that the most liquid objects are located near the center—closed residential complexes with their security, swimming pools, and infrastructure—and within walking distance of the sea. The yield from these options will be about 10% a year.

Note an important point: due to inflation, a year or two after it is in Egyptian pounds (not dollars), you can get double the price for the purchased object. So, especially for Egyptians, it is very profitable to keep their money in real estate.

“In 5 years, the flow of tourists to Egypt should double.”

Realtor Olga Kazimirova shared with us her observations about new projects and large-scale plans of the government:

— I have lived in Egypt, more precisely in Hurghada, for 7 years, and I can say that now there is a particular surge of interest from foreigners to buy apartments near the Red Sea. The real estate market in the region (which includes Hurghada, El Gouna, Sahl Hasheesh, Makadi Bay, and Soma Bay) is the leading one in Egypt. There are a lot of state projects as well as commercial ones.

For example, the government is starting to implement such a project in the new area of Hurghada:

There will be canals that will connect the cities of Hurghada and Sahl Hashish. There will be an opera, a high-speed train line to Aswan and Cairo, and a lot of different infrastructure and residential complexes.

In addition to the Red Sea, Egypt has another northern coast, about which few people know. The so-called “Egyptian Maldives” is famous for its wide, long, and snow-white beaches. By the way, this destination is more expensive than Hurghada and Sharm.

So, now in the north of Egypt, the construction of the city of Ras EL Hikma is being completed. It is divided into 11 international neighborhoods, connected by a flying funicular, similar to the usual one. The economy of the new city is based on three main areas: tourism, agriculture, and rural industry.  

— The state does not stop at this and continues to make grand plans. The Minister of Tourism and Antiquities Ahmed Issa announced that by 2028 the number of tourists in Egypt is planned to increase twofold—that is, their number should reach about 25-30 million a year.

Following this, Egyptian Prime Minister Mostafa Madbouly instructed to make the best use of the wealth of modern real estate in Egyptian tourist and new cities, turning these assets into tourist facilities and hotel rooms to maximize individual tourism.

Madbouly said this approach will benefit the owners, who will be able to rent out their properties and make a profit. It will also benefit the state by attracting more tourists.

I can say that we, realtors, are now seeing a high demand for quality accommodation for wintering or renting, and the bigger flow of tourists will only increase this demand. Therefore, those who look ahead, react in time and buy housing at fairly low prices.