By: Amr Hosny

Translation: Wael Hossam El-Din

Egypt seeks to support real estate exports by approving more facilities for foreign investors to buy properties in Egypt. This is based on the urban development that the country is witnessing through the construction of new cities, fourth-generation cities, and the New Administrative Capital (NAC).

Recently, the government has announced various decisions to facilitate the procedures for foreign buyers. In this feature, Invest-Gate sheds light on the accomplishments of Egyptian property exports during H1 2023, the challenges hindering this issue, and what Egypt needs to make Egyptian property exports more successful.

Governmental Procedures to Ease the Selling Process

The Egyptian government decided to make Egyptian citizenship available to real estate buyers, or whoever deposits $1 mn in an Egyptian bank, and this amount will be returned in Egyptian pounds.

In March 2023, the government decided also to grant citizenship to foreigners who deposit a minimum of $250,00 in the Central Bank of Egypt (CBE) or buy state-owned properties valued at $300,000, according to a decision issued by the Cabinet.

The decision grants Egyptian nationality to foreign investors; the foreigner’s ownership of property in Egypt provides them with a free charge for three to six years.

In May 2023, Egyptian Prime Minister, Mostafa Madbouly, revealed that the government previously allowed only the ownership of two properties for foreign buyers, and they were required to be in two different governorates. However, an amendment was made to an indefinite number of owned properties, and, hence, foreign investors can buy several properties. This amendment increased real estate export, considering the government’s desire to attract foreign investments from various countries.

For his part, Ambassador Nader Saad, the Cabinet spokesperson, said: “The decisions issued in May 2023 by the Supreme Investment Council, included facilitating foreign property ownership, explaining that foreigners were facing problems in owning real estate,” explaining that “The law specifies that they can only own two properties.”

“This previous situation is meaningless, due to the good real estate market condition,” Saad continued. He adds “Egypt seeks to attract  foreign investors to real estate to obtain dollar proceeds.”

Saad indicated that the parliament issued directives to banks to deal with foreigners establishing companies. Hence, open an account for them without residency issues.”

Saad added, “We immediately go to the Egyptian House of Representatives, and we hope that it will accept these amendments to increase investments in Egypt.”

International Developers Expo

This year’s edition of MIPIM 2023 witnessed the presence of major real estate developers in Egypt, including the Administrative Capital for Urban Development, Tatweer Misr, Mountain View, LMD, GV Investments, CRED, Misr Italia Properties, and Nile Developments.

The participation asserted real estate companies’ keenness to present at major international exhibitions. This aims to provide a distinguished example of the real estate developments during the past years, thanks to the government’s efforts to establish new and fourth-generation cities.

Therefore, measures should be taken to improve investment in Egypt, which can boost Egyptian real estate export.

Moreover, leading event management firm Infinity Phoenix organized THE ICON SHOW exhibition in Dammam, Saudi Arabia, in February 2023, sponsored by the Egyptian Ministry of Housing, Utilities, and Urban Communities.

This promoted the Egyptian property sector abroad to flourish properties’ export to get foreign currency, amid targeting EGP 500 mn during the exhibition.

For his part, Mohamed El-Saedy, CEO of Infinity Phoenix, said: “This period is a golden opportunity to attract foreign investors to Egyptian real estate.” Also, El Saedy revealed the company’s goal in 2023 is to establish three new showrooms in the Gulf countries.

What are the Major Real Estate Export Suggestions?

Fathallah Fawzy, Vice Chairman of the Egyptian Businessmen’s Association (EBA) & Chairman of the Real Estate Development and Contracting Committee, told Invest-Gate that Egypt must find a specialized party whose goal is to deliver the unit and its license on time. This will save time and effort for the investor, stressing that this is what Gulf countries apply. Accordingly, they became a desirable destination for foreign buyers, especially Dubai in the UAE.

Arab investors desire to buy properties in Egypt; however, they fear bureaucracy, especially without a specialized real estate authority in Egypt, Fawzi explains. He added that these specialized authorities are what they use in their countries; they ensure profits and proper management of the real estate sector to meet the desires of investors, developers, and realtors.

“The main Arab nationalities who want to own properties in Egypt are the Syrians; this makes it easier for them to obtain Egyptian nationality and residency, in addition to Iraqis and Sudanese, especially after the recent political crisis in their countries since mid-April,”  Fawzi continued.

Furthermore, Hassan Ibrahim, a real estate expert, explained to Invest- Gate that exporting Egyptian real estate to various countries is good; however, this requires careful regulation to assist Arab Gulf citizens in purchasing/investing in Egypt’s real estate market, since prospective property buyers/investors from this part of the Arab world are more motivated and have the most purchasing power to buy in Egypt.

Ibrahim pointed out that Egypt has many new and fourth-generation cities, as this diversity in real estate adds a competitive advantage unavailable in Arab Gulf countries.

“There are other Arab nationalities, such as Iraqis, Syrians, Palestinians, and Sudanese, who are settled in Egypt and are looking for properties in Egypt to facilitate matters of residence and life. This makes them permanent residents,” Ibrahim noted.

He pointed out that Egyptian real estate companies opened headquarters in the six Gulf Cooperation Council countries (Kuwait – Saudi Arabia – Bahrain – UAE – Oman – Qatar) to market Egyptian real estate. Ibrahim highlights that this keeps Gulf investors well-informed about the latest details about the opportunities in Egypt’s property market.

Global Real Estate Export Plan

According to the Turkish Statistics Authority, several European and Asian countries export their properties, such as Russia, Turkey, and the United Arab Emirates (particularly in Dubai). Turkey made 16,312 real estate sales to Russians in 2022 after the Russian-Ukrainian crisis.

Dubai has become a safe place for those looking for real estate in stable areas, as Dubai recorded in 2022 more than 86,000 sales, worth $56.6 bn. The city offers three types of real estate ownership: freehold, joint ownership, and usufruct.

Speaking of Egypt, the state plays a vital role in real estate export, since it offers diverse property products, and offers facilities for purchasing.

The Real Estate Development Chamber revealed in an official statement that Egypt has around 12 million expatriates; 500,00 of them have the  financial ability to purchase a housing unit with a value amounting to EGP 5 mn. This comes amid requests raised to target the Chinese since they are the major nationalities looking for properties abroad.

Moreover, the chamber asserts that Egypt’s prime location between Africa, Asia, and Europe facilitates real estate export, in addition to the fluctuations in USD prices in Egypt eases property ownership in Egypt.