Egypt is increasingly a magnet for multi-national organizations that want a strategic base in the very heart of the Middle East. The Egyptian Government’s commitment to economic growth and reform since 2004 has paid off. A growing economy and a climate that encourages foreign investment is impacting both commercial and residential sectors. Today, Egypt represents a unique investment opportunity for international real estate developers and investors attracted by the country’s reputation as a safe and solid investment destination and for the quality of its developments that include high-end condominiums, shopping malls and sea resorts.
The progressive relaxation of many of the country’s inward investment regulations has extended to both the commercial and residential property sectors.
Companies incorporated under investment law 8 of 1997 now benefit from:
|»||Unrestricted ownership of investment capital by foreign investors.|
|»||The right to transfer funds freely in and out of the country, including unlimited profit repatriation and invested capital re-exportation.|
|»||The right to acquire and own land and real estate.|
|»||The right to operate on behalf of third parties.|
|»||No price controls or profit ceilings.|
|»||Mortgage and financial leasing.|
|»||Entitlement to export and import immediately.|
|»||Approved projects cannot be nationalized, expropriated or confiscated.|
With strong long-term economic growth, decreasing inflation, and an upsurge in both demand for short-term rental accommodation and second properties, Egypt is proving that it is more than just the home of ancient culture and the Pyramids.
Among the many factors combining to make Egypt a hot prospect for the property investor is the record number of visitors that the country is attracting.
The feel-good factor engendered by upward economic trends and tourist numbers has inevitably had a positive knock-on effect on real estate.
Investment in Egyptian property is offering great opportunities for purchasers – particularly at this early stage of the vibrant fledging market – and major cities are currently attracting as much as 25% annual capital growth.
Meanwhile, as more overseas buyers seek holiday retreats and second homes in these resort areas, the second home resale market has started to show profit potential over and above the initial capital outlay. Egypt’s proximity to the European mainland and renewed tourist infrastructure mean that this market keeps on growing as holidaymakers see the potential for owning another property in an attractive, exotic location with a reasonable cost of living.
The majority of real estate investment is taking place in the major cities such as Cairo and Alexandria, where special business zones, districts and satellite cities are also attracting international commercial developers. New resorts on the country’s north coast, the Red Sea and Sinai are also proving a powerful draw.
ARTOC Universal Properties has also identified unique property locations that offer added value, and is assembling the most appropriate teams to capitalize on the upswing in interest from international developers and investors.