The buying process in Egypt

You’ll be pleased to hear that foreign investors and property buyers can now own freehold property and land in Egypt.

By far the best option is to buy new/off plan property on a new development. If you couple this with a good location – either a major city or one of the popular coastal areas – the buying process is quite straightforward.

But a word of warning; the fun starts if you’re considering a resale property and in particular one that’s not in a main resort area or city. This is because only around 10% of these properties have been properly registered. So establishing rightful ownership on older and resale properties can be almost impossible.

The cities and resort areas are much more focused on the new and growing property markets and the international interest is in these regions.

The Egyptian government is keen to attract foreign investment and has embarked on a series of stringent reforms to put Egypt in the spotlight. It is working to raise Egypt’s profile as a serious global trading partner and to ensure that it is seen as a strong nation both politically and economically.

And this strategy is working as some pretty heavy weight companies are pouring billions into Egypt, including some of the big players who were instrumental in Dubai’s incredible makeover.

As a foreign property purchaser, you’ll benefit from the greatly improved purchase procedures that the government is implementing. And as a result of these changes and improvements, it’s no coincidence that Egypt’s appeal is increasing with property purchasers, as the Egyptian property market looks set to enjoy a long period of solid growth.

We only offer new and off plan properties on developments that have clear title. We only work with developers and builders who have excellent track records for their standard of workmanship and ethical business practice.

We want to sleep at night as well as you…

Main Stages in the Buying Process

When you decide you’re ready to buy, you’ll need to secure your property by paying a reservation fee. This takes your new property off the market and reserves it in your name whilst you’re arranging your finances. The procedure is the same whether the property is new, under construction or off plan.

A private purchase contract will be drawn up by the vendor’s lawyer, who will also supply information and the relevant documentation relating to registered property title, building licences, and planning consents.

If there is anything relating to the sale, or any conditions, these will be included in the contract at this stage. This will include details of the stage payments and when they become due.

Your lawyer will carry out the necessary checks to ensure that all is well with the title and licences etc. They should also advise you of any clauses that they feel should be added /changed /deleted from the contract to ensure that your interests are protected.

As the stage payments fall due, you transfer funds to an escrow account held by your lawyer, who will hold it until the developer has reached the given milestone in the construction of your property.

When your lawyer is happy that the developer is on target, the stage payment is released to them. This method ensures that your investment is safe and that the builder keeps to the projected schedule.

When your property is complete and you’re ready to take possession, the completion documents will need to be signed by you and the vendor in the presence of both parties’ lawyers.

If you’ve given power of attorney to your lawyer, they can do this on your behalf, although many buyers are anxious to come and see their new home.

Once all the paperwork is completed and the property is transferred to you, it can be registered in your name at the land registry office. This completes the buying process.

Typical Stage Payments (Milestone Payments)

5% upon reservation
25% upon contract signature (Due within 28 days from reservation) i.e. 30% in total
20% On 1st stage of construction
20% On 2nd stage of construction
25% On final stage of construction
5% upon delivery

These milestone payments are designed to coincide with the various phases of construction and are paid when the stages are achieved.