Choosing the coast
Now the choice of housing in Egypt is quite wide – in all resorts you can easily find apartments in residential complexes with a closed protected area, as well as detached houses. The resorts Hurghada on the mainland and Sharm el-Sheikh in the south of the Sinai Peninsula, with at the same time, in Sharm el-Sheikh, the cost of housing is 2-3 times higher due to the elite status of the resort.
"Sharm el-Sheikh is a place for luxury holidays, presidents and kings come here," says Elena Utyumova, head of the real estate sales department abroad at Eurorezident. – When choosing a house here or in the resort of El Gouna, 30 km from Hurghada, it should be borne in mind that it is not for sale, but is leased for 99 years with the right of extension. Although this does not bother many people – they say that they do not live so much, especially since real estate can be inherited."
Sharm el Sheikh is a real paradise for divers, but, unlike Hurghada, the coastline here is very small in length, so the area grows more in breadth than in length. In Hurghada, the coastline is longer and there is a sandy beach, but this resort is not so gorgeous yet, although it promises to be no worse than its competitor in the future.
Now extensive construction has been launched in the vicinity of Hurghada. Thus, three complexes are being built south of the city in the village of Sahl Hasheesh, as well as two new resorts – Makadi Bay and Safaga. According to the developers' plans, in the near future, many more expensive housing will appear in the area south of Hurghada. Work is also underway north of the city, near the resort of El Gouna. Sofia Aksyutina, director of Eurodom, notes that the construction of high-quality tourist complexes will lead to an increase in prices in the near future. In the meantime, Egypt itself is an inexpensive country: salaries and prices for tourist services are low here.
Zinaida Mazur, sales manager in the eastern countries of the Vostok Dom company, notes: "Many of our compatriots are afraid to purchase real estate in Arab countries. I think this is one of the main reasons that real estate prices in Egypt are still low. But Egypt's investment policy is aimed at attracting as many foreigners as possible."
High low prices
Indeed, compared with other countries, the cost of real estate in the resorts of Egypt is very low, but now it is growing rapidly, which makes the conditions for investment very profitable: the annual increase in prices for objects ranges from 20 to 50%, while the increase is in leaps and bounds, and in exceptional cases, apartments can rise in price by a third in three weeks. Evgeny Voronov also talks about such cases when the apartments that he bought five years ago for $8000 increased in price to $50,000, and the apartments bought two years ago for $10,000 were recently sold for $35,000.
"For the local population, today's real estate prices are already very high, and foreigners note that they can no longer be compared with when it was possible to buy two-bedroom apartments for $ 6,000," says Elena Utyumova.
Although it is still possible to find real estate worth $15,000-16,000 in Egypt, according to Zinaida Mazur, if the investor expects to resell the house or rent it out in the future, this will not be the best option. "The most profitable investments are in facilities that are located in closed complexes with security, access to the beach, good internal infrastructure – but they are, of course, more expensive," she believes.
As a rule, apartments with 2 or 3 rooms are offered in gated complexes or hotels, and their cost ranges from $1,000 to $3,500 per 1 sq. m. Private houses in Hurghada or Safaga under construction can be bought at a price of $300 per 1 sq. m. they are located in a protected area and have a sea view. According to Evgeny Voronov, it is in such houses that the price-quality ratio is optimal. At the same time, during construction, the cost of the object increases by 40-50%, especially for expensive real estate located on the first line of the sea and on the territory of hotels. Prices for numerous objects ranging from $16,000 to $35,000 are growing more slowly, adds Zinaida Mazur.
According to Ksenia Komrakova, a real estate specialist in Egypt at Eurodom, the average price of real estate in Hurghada is about $1,000 per 1 sq. m, in Sharm el-Sheikh - about $1,500 per 1 sq. m
. Traditionally, the cost of housing depends on location. Apartments located on the second line of the sea, with two bedrooms, a living room, a kitchen, a bathroom, which do not require repair, but without air conditioning will cost $ 35,000- 40,000. The basement, which in Egypt is called "Bodrum", with the same characteristics – two bedrooms, a living room, a kitchen, a bathroom – can be purchased at a price from $30,000 to $35,000. A studio in a hotel with a living room and a bedroom, a kitchen and a bathroom will cost from $25,000.
"In Egypt, an investor can choose very different options,– says Elena Utyumova. – Most apartments in residential complexes that we work with cost from $25,000 without finishing. As an example, I would cite such a complex as "Hurguna", located on the second line of the sea, 400 m from the water and 15 minutes north of Hurghada. There are other, more expensive options, for example, the Lotus complex in the center of Hurghada, on a pedestrian street, 5 minutes away. from the sea." The company also offers studios with finishes priced from $850 per 1 sq. m., with their purchase, installments for a period of 1.5 years are possible. Relatively cheap real estate is also available nearby, in the resort of Makadi Bay.
The purchase process
Usually, real estate is chosen locally, although there are cases when clients book objects under construction without leaving Moscow.
Evgeny Voronov describes the purchase process as follows: "During the first day, the future buyer and I are considering options. Then the client goes to the notary office, where a power of attorney is drawn up in the presence of a lawyer, in which the client transfers the authority to conduct state registration of housing to the company's lawyer. At the same time, in the company's office, a specialist prepares a purchase and sale agreement in Arabic and in the client's language. In the evening, the buyer and the owner of the property sign a contract at the office, and payment is made on the same day. On the third day, the new owner of the purchased object goes to the notary office, where a general power of attorney is issued for him – thus the buyer becomes the rightful owner of the property. It is impossible to revoke the general power of attorney unilaterally." Evgeny Voronov adds that the Egyptians themselves do not register their apartments, but live by a general power of attorney, and he himself did not register his real estate either.
Indeed, state registration of property in Egypt is not mandatory, but it is highly desirable for foreigners if a visitor wants to eliminate possible problems. For example, it is needed so that there is no conflict with the relatives of the former owner, who can challenge the right to real estate in court. Registration can take up to 14 months and will cost 3,500 Egyptian pounds, or about $640. Of this amount, $100 is a lawyer's fee, and the rest is a state fee. Documents are issued by hand. Since the 3% real estate tax was abolished, it can be assumed that the state duty remained the only real estate tax.
As for the permission to stay in the country, in order to come for up to 3 months, it is enough to pay for a visa stamp at the airport. If a resident visa is needed, the lawyer sends the documents to Cairo, to the Committee on Foreigners, then the papers are sent to the court, where hearings are held, and on the basis of a court decision, a visa permit is issued. Then the lawyer applies to the migration service, which issues a resident visa. The whole process can take up to six months.
When planning the purchase of real estate in Egypt, it should be remembered that the concepts of common and usable space are not separated here. It is also necessary to know that when buying a land plot of 300 square meters, the owner has the right to build up only 60% of the area, and 40% must be given for landscaping.
The Egyptian market is in the process of formation, and today there are many unscrupulous realtors operating here, so you need to treat the purchase of real estate responsibly, make inquiries about the company, do not hesitate to require a license and the entire package of documents. "You should also pay attention to where the office is located,– says EvgenyRavens. – At the same time, you should not be afraid of agencies occupying pompous buildings. There are many companies in Egypt that sell legally, openly and honestly earn their 5%."
