Real Estate Exporting

Its Role in Revitalizing the Real Estate Sector in Egypt

December, 2022

    /BLOG/Discover Real Estate

Despite the current economic crises Egypt is going through due to the COVID-19 pandemic and the Russian-Ukrainian war, the real estate sector has stood firm against all these challenges with it being one of the safest sectors due the constant demand for properties.

In order to increase sales and further boost the real estate sector, Egypt has directed special attention to exporting properties to foreigners and Egyptians living abroad. To keep up to date with the latest news about real estate exporting in Egypt, we interviewed Mr. Hany Sobhy, Broker Owner of RE/MAX Capital Properties based in Heliopolis.

Real Estate Exporting in Egypt

Mr. Sobhy explained that real estate exporting in Egypt is about attracting different nationalities to invest in the Egyptian real estate market, a concept that Egypt has been paying great attention to in the last few years. Indeed, many foreigners and Egyptians living abroad have already invested in Egyptian properties and moved to live in Egypt for many reasons including: its strategic location that distinguishes it from other countries in the world, the energy crisis and the high cost of electricity and gas that foreigners are currently facing in European countries, or because they were looking for a safe investment as properties retain their value at any time and under any circumstances. Mr. Sobhy also believes that many owners of international companies would be attracted to invest and work in the fields of solar and wind energy in Egypt, as it is expected to become a powerful source of renewable energy worldwide.

Mr. Sobhy also stressed that the prices of all types of properties in Egypt, whether residential, commercial, or administrative, are lower than the price of properties abroad, making it an opportunity for all foreigners and Egyptians living abroad to invest in properties in Egypt. And with the worsened crisis of the devaluation of the Egyptian pound against the dollar, the prices of properties have decreased in comparison to the dollar, making it easier for those who want to invest in properties in Egypt and buy units at a lower price.

4G Cities……..How Do They Attract Foreign Investment?

Mr. Sobhy mentioned that Egypt in the last few years began focusing on establishing new cities or “4G Cities”, which are around 14 in total. These cities which are closer in standards and features to cities abroad, will give Egypt an even greater opportunity to promote its properties globally and increase international demand for real estate in Egypt.

He added that 4G cities, or smart cities use the latest construction methods. They are characterized by strong infrastructure and provide high-quality services, such as the availability of smart electricity and water meters and smart cards in replacement of cash. In addition, modern transportation, such as the monorail and the light rail transit (LRT) that link the Greater Cairo to the New Administrative Capital, is considered one of the important features of 4G cities. All these advantages will make it more encouraging for foreigners to live and invest in Egypt as these new cities offer very similar features and standards as what they would find in their homeland.

What distinguishes 4G cities from other cities in Egypt is that they follow sustainability standards such as waste recycling and implement green building standards. In addition, they are close enough to major industrial areas; making them an attractive and strategic location for companies and factories interested in opening a branch there. For example, the New Administrative Capital, which is close to the Suez Canal Economic Zone, would be an ideal location to open one’s company or factory allowing one to have access to a vital area on the Suez Canal axis. Other ideal 4G cities would be New Assiut or New Minya where one can find great industrial areas in close proximity if they want to work in various industries or the field of energy.

Egypt 4G Cities

Developers and Government’s Role in Revitalizing Real Estate Exporting

Mr. Sobhy believes that both developers and the government have a great role in promoting real estate exporting. Developers should be committed to their work and keen on delivering fully finished properties in a way that suits a foreign investor’s taste and expectations.

The government also has a major role in boosting real estate exporting. According to Mr. Sobhy, Egypt has already issued a new investment law that allows a foreigner investing in real estate to obtain a temporary residence by purchasing a property via money transferred by his bank outside of Egypt. If the foreigner invests in a property that is worth $100,000, he will obtain a one-year residence, and if the property is worth $400,000, he will obtain a 5-year residence. In addition, foreigners can also register their property in the Real Estate Registration and Authentication Office, where the procedures will be completed within ten days from the date of submitting the required documents. They can also apply for a mortgage loan with the unit as the collateral for the lender as long as the foreigner is working in Egypt. All these privileges provided by the government will encourage more foreigners to invest in Egypt.

In addition, Mr. Sobhy also suggests that the government should hold real estate exhibitions outside of Egypt on an international level with the aim of attracting many foreigners to invest in Egypt, similar to tourism exhibitions held abroad that encourage more tourists to visit Egypt.

Investment Tips for Foreign Investors and Egyptians Living Abroad

Mr. Sobhy advises foreign investors and Egyptians living abroad to research the market well to know the best type of investment at the current time, whether it is residential, commercial, or administrative. He also mentioned that it is important to deal with accredited real estate agents, such as those who work with a well- known company, such as RE/MAX. A company like RE/MAX, the #1 real estate brand in the world, will play a great role in facilitating the process of marketing Egyptian real estate to foreigners and Egyptians living abroad thanks to its unmatched global footprint and large network present in more than 115 countries.

real estate investing tips

Real estate exporting is a great way to attract foreign currency to Egypt without having to go through any of the complicated stages of exporting, shipment, or customs, which will positively impact the Egyptian economy in general and the real estate market in particular. If you want to buy a property or deal with distinguished real estate agents, contact RE/MAX Egypt by calling 16088 or contact us here.

Mr. Hany Sobhy

Broker Owner