Hi Everyone,

I am a first time investor looking to invest in Egypt. I am looking for a high rental return and a good capitol growth. Can anyone please advice on things like where to buy, buying from plan and what problems I could encounter.

Thank you
Dex

In Egypt 90% of all properties are 'informal' that is to say they have no title deeds. There is currently no national land registry system in existence. Also beware of Sharm el Sheik as properties here are leasehold.

Some Developers on the Red Sea have purchased large tracts of land and are building huge Five Star resort complexes. I am an investor and have purchased five front line beach units in Sahl Hasheesh near to Hurghada. Here the Developers have employed British town planning consultants to produce a masterplan and every plot of land has been registered with the governate of Hurghada. All 32 million m2 has now been sold and the owners of every plot have to produce plans for their proposed projects which then has to be approved by the land owners and the local council. Once the plans are approved the building licence is issued and the construction monitored to ensure compliance.

Once completed, an occupancy licence is issued and the purchase can be registered and Notarised at the town hall.

__________________
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Investment Property in Egypt

prices of property speake for itself,
check prices in Sharm El sheikh vs Hurghada or Sahl Hashish and the higher the price that is there is a greater demand on the place and that would be Sharm.
leashold for 99 years
gip4u

Who would hold the freehold in Sharm?

Dex

Dex

The only way you can ever gauge investment returns is by looking at the historical data in the area you wish to invest in.

I am a developer in Hurghada, Egypt. Previously I was involved in the industry in the U.K where it is easy to gauge a rental or sale price and capital growth by checking a few estate agents and researching what similar sized properties in the same area are renting or selling for, you can even check with the land registry to see what the nearest sized property sold for in the recent past.

These stats are not available in Egypt, because there is no real history of apartment rentals in the area, its a brand new industry for there.

The only guidance I can give is on long term rentals, from locals and europeans that work there.

In an area like El Dahar you can pay as little as £100 per month for a one bedroom apartment. El Hadaba is not much more and Sakaala you will pay about £150 per month.

El Kawser will return you from £250 to £300 per month as it is a much cleaner up market area.

The short term 'Holiday rental' market has not even started yet as there are very few quality apartment complexes even finished and the all inclusive packages in quality hotels are still exellent value for money

Therefore beware of anyone that offers a guaranteed rental scheme as there is no history and to offer this they can have only loaded the price of the property by the amount they promise to pay you back.

I doubt anyone will offer more than two years guaranteed rental because it wiill load the price too much and also their plan will be to have moved on to another destination elsewhere in the world.

We do not and will not speculate on returns as we live there, continue to manage our own developments along with the owners and have a long term view.

Remember if you are presented with anything that sounds to good to be true it often is....

As far as capital Growth is concerned, history is a gauge of the past and a guide to the future. I have seen land and property in Hurghada double in the last twelve months and has no sign of slowwing down, but when you bear in mind a quality 1 bedroom apartment can still be purchased for around £25k in a great area that is around a five hour flight from the U.K with a twelve month, guaranteed season then I would sugest there is still a lot of room for growth.

I hope I have answered your question.

Regards

Andy

I am a new developer in Hurghada and I am not offereing great rental returns since I do not think that there is a very strong demand yet, and there is lots of competition for apartment space. The cost of hotels in not a lot more than an apartment unless you atre taking a big family and even then you are hard pushed to find cheap flights from the UK. I think that anyone advertising rental guarnetees in only adding it to the basic selling price. Maybe in a couple of years time if the cheap flights start there will be a bigger demand. The Red Sea is certainly a great place for winter holidays, but its too hot for Brits in July & August.

Hi Dex - it doesnt appear that we have heard from you in a while. How have things gone for you and have you bought in Egypt yet?

Regards

Alison

Hi there

Im new to this forum and am looking to buy somewhere for around £30k as an investment.

I have read a lot on the property market in Egypt and read a quite a few posts and Hurgarda and Marsa Alam look good but was wandering whether people thought which had the better potential rental return? I know its like asking how long is a piece of string but have I missed the boat on Hurgarda and is Marsa Alam too far off the beaten track or do people think it will take off? Also is buying in Egypt relatively hassle free - from reading some of the forum topics it seems not!

Any advice gratefull received

thanks
Matt

Hi Gibbo,

Wecome to the forum. I think that you'll find plenty of advice and help from the members here.

If you haven't seen it already we have a thread for new members : http://www.totallyproperty.com/egypt...w-members.html but if you need any help fr way around the forum just give one of the moderators a shout.

For myself, I don't think it's too late for Hurghada having only recently purchased there and I know many others will agree.

We have a thread on Marsa Alam too: http://www.totallyproperty.com/egypt...a-alam-36.html which might be of interest to you.

Best wishes

Linda

Hi All,

This is my first post (yes i ve read the new members thread, thanks in advance mods)

Some great information on this site in regards purchasing property in Egypt, especially for prespective 1st time buyers such as myself - keep up the great work mods!!!

1) In your experience what type of property (i.e. studio, 1, 2, 3 bed) appreaciates the most?

2) Which resort is most likely to emulate the success and huge capital appreciation seen in el gouna?

3) Ive heard Cairo offers some of the best rental yields for any major city throughout the world, can anybody point me in the direction of investment companies who deal with Cairo? i see demac are planning a resort but the entry prices are quite high and it does seem very exclusive.

4) I have 30k to invest, if you were me - what would you do, all suggestions welcome and appreciated!!!

kind regards

Steve