In the wake of the troubled times that it lived through in the recent years, Egypt is now making a good recovery in terms of general economy, tourism as well as property and real estate markets.
Overseas buyers including cash-rich investors from countries like Russia, China, UK and other European countries are beginning to show a renewed interest in Egyptian properties.
Hotel and resort occupancy rates in major tourist destinations like Sharm-el-Sheikh and Hurghada on the Red Sea are back, reaching over 60% mark.
Away from Red Sea locations, the tourism and property markets in places like the capital Cairo and Luxor are also recovering.
If you've not had prior experience buying or selling property in Egypt, you need to know a few things before you get into any deal. First and foremost, finding a reliable and trustworthy – truly trustworthy – lawyer is of a paramount importance. This is so for the reason that there happen to be many self-styled lawyers in Egypt who are either not trained as lawyers, or corrupt,or both.
Furthermore, many properties, specially in the tourist hot-spots, happen to be in violation of the prevailing government norms by way of omission (rarely) or commission (in most cases). In fact, Hurghada and some other places have been found to have a history of property development projects which are illegal.
Thus, it is as a result of the above facts that you must find a highly reliable and trustworthy lawyer before entering into any property transaction in Egypt.
Different types of property trading systems exist in Egypt, depending on the area and the nature of the proprty – pri-build or resale. In case of new or off-plan properties, the buyer is normally required to pay a deposit of about 5 to 10% of the property value. Normally at this stage, the contract is prepared (which is usually bilingual if a foreign party is involved in the trade). This contract would normally carry the details of further installment schedule or milestones. The payment of off-plan installments is usually based on specific dates pre-agreed by both parties, rather than on project completion stages.
In case of completed or resale properties, the deposit amount normally remains the same at 5 to 10% and the balance amount is paid according to the terms of the contract, once the buyer's lawyer has verified the property titles and encumbrances etc., which can be a lengthy and difficult but still essential process. The property registration would normally take place upon completion of the final payment.
In addition to a lawyer, finding and retaining the services of a reliable estate agency is also essential for selling property in Egypt. A good agency can not only help find the right buyer but also work with your lawyer to smooth out the often lengthy and difficult procedures and paperwork that is usually associated with a property transaction.
Whether you're in the market to buy or sell property in Egypt, you can start by contacting an expert estate agent like the Worldwide group we have sold a few thousand properties accross the country.