Egypt Real Estate 101

As part of a new shorter content format here at the ESW Patreon, we have started a "5 Questions" series of Q&As on offshoring, real estate and related topics.

The first Q&A goes to an Egyptian real estate lawyer known to our MENA Editor, Ahmed.

Happy first day of Spring to everyone in the Northern Hemisphere!

-- James Smith

Editor-in-Chief and Publisher, ExitStrategy.World

March 20, 2024

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1. What is the most important thing foreigners should understand when entering the Egyptian real estate market, especially when investing in multi-family apartment buildings?

The most important thing to understand is that one of the main obstacles that face foreigners is that when they apply for real restate registration, they first need permission from State Security and the Ministry of Internal Affairs, which can take some time based on the workload and background checks, the real estate lawyer and the legal representative of the foreigner will submit a request for security approval to State Security, besides that, the same procedures apply when you are buying or selling properties, regardless if you are a foreigner or an Egyptian.

2. What are the basic steps every foreigner should plan on when making a property purchase in Egypt? (eg hiring a real estate attorney, notary registration, or apostille of supporting documents etc)

The steps are completely normal and any self-respecting law office in real estate can handle it very easily, however, it is important for the foreigner to first pass by the General Administration of Passports, Immigration and Nationality the minute he lands in Egypt, to obtain a residency permit, for a month, two months, no matter, because you can not buy property in Egypt if you do not have a residency permit.

3. What is the main difference between buying new construction property in the New Capital vs a new building in other more established neighborhoods in Cairo or Alexandria?

Everybody has their preferences and thus it is up to the foreigner where he wants to buy, however, in terms of property value, the [potential for appreciation of - eds] property value is rated the highest in the New Capital and thus if you were looking for financial gain, it would be better to buy in the New Capital.

4. How do Egyptian banks process escrow deposits for real estate purchases, or are real estate deals handled in direct bank wires from buyer to seller?

Everything is processed normally, and the law office you are dealing with can handle it completely perfectly, however, you have to deposit the value of the property you want to buy or sell in an Egyptian bank account.

5. What changes have you seen in the nationality of foreign buyers of Egyptian real estate since Feb 2022? More or fewer buyers from Russia and Ukraine? Are the Gulf states or Egypt's neighbors (Libya and Sudan) generating more buyers in the past two years?

There was no noted increase of buyers from Ukraine or Russia in Cairo or other main population centers, however, there was an increase of numbers of properties being purchased by these two nationalities in Safaga, Hurghada, Sharm el Sheikh, and other resort cities, while people from the Gulf states are the ones buying a lot of properties in Cairo, New Capital, and all of the neighborhoods in these two cities, they [GCC citizens/permanent residents - eds] are the largest proportion of buyers.