What do you expect from the Egyptian property market in the short, medium and long term?

reply

The property market needs three things....... Honesty, Integrity and Transparency.

Without any, they will never regain trust.

 

Egypt Property Market

Above all else Mantis is absolutely right. There are definite signs of a recovery beginning to happen and it is encouraging to see enquiries for higher value properties again.

However, as before the Revolution, certain obstacles still exist and the greatest of this is the lack of affordable financing for the higher value properties.

In recent years Developers have realised the problem and have been prepared to offer interest free finance over up to five years but ultimately, to provide an exit route for investors, banks need to be willing to provide mortgages at affordable rates of interest in order to encourage sales of higher value resale properties.

For this to happen the new government will need to 'fast track' the regulations to allow properties to be registered for Green Contract at the point of purchase as in other parts of the World, as this is the basic requirement to encourage banks to grant mortgages.

 

More than this Peter, any developer now must have his own capital and not rely on sales.

For too long land has been acquired yet not actually paid for. Licences obtained yet no guarantee the buildings will be constructed within regulations and time-scales.

Too much has been concerned about promotion and sales and not enough safeguards were in place resulting in hundreds of unfinished projects with hundreds of thousands of angry buyers including Egyptians themselves not obtaining properties.

Fast track ownership contracts are good only if lawyers actually see the work through. Years have elapsed before many got any papers. Whose fault is this? Time will tell.

 

my experience of buying in egypt hurghada is 52,000 sterling loss

 

Typical hype more like. Without security from law and order imposed by an elected government of the majority, why would anyone take the risk?

 

Egyptian property market

The Egyptian people are not like the Syrians or the Libyans; they are generally of a peaceful nature and most want prosperity and stability in their country.

The problem is that they have no experience of democracy in living memory and there are many different factions who think they have the answers; they made a huge mistake in trusting the Muslim Brotherhood and I only hope that this time round they will act more wisely.

Only time will tell; however, our experience has taught us that there is still huge interest in the country, both from lifestyle buyers and investors.

Anyone considering buying in Egypt should however learn the lessons from the past and proceed with caution; it is still an unregulated market with many potential pitfalls. It is vital to seek qualified help and advice from others with experience.