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Help / Advice / Where to Buy in Egypt

Discussion in 'Egypt property' started by Dex, Jul 26, 2007.

  1. Dex

    Dex New Member

    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
     
  2. Peter Mitry

    Peter Mitry <B>Egypt Forum Founder Member</B>

    What to look out for in Egypt

    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.
     
    Last edited by a moderator: Apr 3, 2008
  3. gip

    gip New Member

    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
     
  4. Dex

    Dex New Member

    Egypt Apartments

    Who would hold the freehold in Sharm?

    Dex
     
  5. andyharris

    andyharris New Member

    investment returns

    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
     
  6. dave99

    dave99 New Member

    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.
     
  7. queenie40something

    queenie40something Senior Member

    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
     
  8. Gibbo1975

    Gibbo1975 New Member

    Where to buy in Egypt

    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
     
  9. Lsab

    Lsab New Member

    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-property/7507-quick-links-new-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-property/6772-marsa-alam-36.html which might be of interest to you.

    Best wishes

    Linda
     
  10. The Smart Money

    The Smart Money New Member

    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
     
  11. rossantony

    rossantony New Member

    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?

    tough question! in my experience studios and one beds can produce the best rental yield/for money invested, however the flip side is that 2 beds rent out better to families..so i guess the answer is that it depends on how much of the year the property is rented out.

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

    at present i believe sahl hasheesh is the only rival "international resort" to el gouna. i think gamsha bay and marsa alam are a bit to far away from the centre triangle ( el gouna - hurghada - sahl hasheesh ) to be serious competitors for the time being

    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.

    I used to work for a developer from cairo..its all out of town ( sheik zayed, sixth october, beverley hills ) being developed for the new rich of cairo...you would need 100k

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

    do you have 30k all in? my advice is have the same amount in the bank as you are looking to invest (that's from my poker playing days) you have to budget for furnishing (can be more than you think!), bills, maintenance, lawyers, local taxes etc..unless the developer is offering a guaranteed rental consider if you can afford to keep the property running and in good shape with a 0% yield..thats worst case scenario. Of course it wont be, but every good general will plan for the worst...everything else is gravy! thats i hard rule but i havn't lost my shirt yet.

    so my advice >>> with a 30k before buying make sure you can handle the cost of ownership..if you are ok with that, in the present crunch try to buy outright rather than burden yourself with finance..

    over to the others..
     
  12. with your 30k you can get a studio or 1 bed maximum if you want to have it in a good project with good facilities but you have to be fast as here prices in EGypt getting more every day
    For Damac with this budget forget to have good investment in cairo no way with this budget cheapest unit with Damac is 260000 GBP so with 30k you can know
    I think with this budget red sea is best for you
    Regards
    George
     
  13. RedSeaVision.com

    RedSeaVision.com New Member

    There are still many developments available for the price range you are in.
     
  14. queenie40something

    queenie40something Senior Member

    Hi Matt and welcome - I have merged yout thread with this existing one on help / advice and where to buy in Egypt.
     
  15. zahara

    zahara New Member

    Please Help Me Choose Egypt Proprtey!

    Hi I am new to this thread and was hoping you can help pls. I am currently deciding between hurghada villiage property and desert pearl. I have already heard the negativites of hurghada villiage but my apartment wont be facing the motorway so not concerend about that. I just want one with good location, rental return and capital appreciation. Any advide much appreciated :)
     
  16. Lsab

    Lsab New Member

    Hello Zahara, welcome to the forum. I'm moving your post to this thread:

    http://www.totallyproperty.com/egypt-property/7829-help-advice-where-buy-egypt.html as several new members have asked a similar question to yours.

    Have you visited Hurghada yet? There are so many developments of course, what made you decide on picking one of these two? Have you read through both these threads on the forum and have they helped you make your decision at all?

    As a new member you might also find this thread useful to you:

    http://www.totallyproperty.com/egypt-property/7507-quick-links-new-members.html

    If you need any help finding information on the forum, please feel free to ask one of the moderators :)

    Good luck with your decision

    Linda
     
  17. zahara

    zahara New Member

    Thansk for the feedback Linda, I have not visited hurghada but have been to sharm and Cairo and loved it! Am drawn to the year round sunshine and combining investment with holiday home. I chose these 2 because they are more or less ready for exchange by Aug which is appealing...that and the agents were good at selling! but now having done more reseach not sure which of the 2 i would benefit from especially as i have not been there. Villiage offer nice views and is more quiet..DP not great views more crowded but then better known..i have also beed reading on West Side Villiage and sahl hassesh...not sure what factors contribute to inc in value and what draws people to rent??? The other option is to buy both but dont think it would be wise to get a mortgage as wont reap as much benefit?
     
  18. Gibbo1975

    Gibbo1975 New Member

    thanks for that - do you know of any good developers in the Hurgarda area? I think I read somewhere that you had bought in Hurgarda. thanks Matt
     
  19. read the different projects threads and the projects you find negative feed backs so its good one or the ones that was never mentioned so forget about it, or you canask direct if you have name in mind to ask opinions
     
  20. queenie40something

    queenie40something Senior Member

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