Egypt officially called Arabian Republic of Egypt is the state situated in North-Eastern Africa and on Sinai Peninsula. It borders on Israel, National Autonomy of Palestine (Gaza Sector), Sudan and Libya. It is washed by waters of Mediterranean Sea in the north and the Red Sea – in the East.
Population: 77 498 000 people (2007).
Currency in Egypt: Egyptian pound (1 EGP = 0.12 EUR)
Major cities population
|City||Population (est 2005)|
|Cairo||7 734 614|
|Alexandria||3 811 516|
|Gaza||2 443 203|
GDP – actual growth indicator: 7.1 % (data of 2006)
GDP – per capita: $4,836 (data of 2006)
Employment level: 10.01 % (data of 2007)
Inflation: 8.80 % (data of 2007)
Political system in Egypt
Head of the state – President
Head of the Government – Premier Minister appointed by the President
Parliament consisting of two chambers: upper chamber (Shura) is composed of not less than 132 senators, third part of whom is appointed by the President; and lower chamber – People’s Assembly (454 deputies, 10 of whom are appointed by the President)
Economy of Egypt
30% of all able-to-work citizens are employed in the agricultural sector. Industrial sector is mainly based on textile factories and companies producing food products. Rich ore deposits in the country are used as a source to supply raw materials to the gigantic iron-and-steel works in Heluan. Electric power is generated by Asuan hydroelectric power station. The country is rich in natural gas deposits. Foreign investment inflow has considerably increased since 1979.
Construction of the road network connecting all districts of the country intensively develops; schools, hospitals are erected; telephone network is renewed and expanded. Egyptian pound became a stable currency. High tempo of development is observed in the tourism industry – dozens of new hospitals are built, new spa centres in the Red Sea area are created, great deal of ancient monuments are reconstructed.
Main income in Egypt is gained, collecting dues payable by vessels crossing the Suez Canal, and not in the tourism sector or agriculture as many people think. The second and third aspects producing income is oil production and tourism. About 5 million tourists visit Egypt every year, being a surprisingly low indicator for the country with such valuable heritable. The reason is that Egypt counted on mass tourism from the middle of 80-ies. All favourable conditions for investments were created in the ARE during that period, thus, the hotel and tourism business is the most dynamically developing sphere nowadays.
Real estate market in Egypt
Real estate in Egypt is the most attractive sphere for investments. First, it is an all-the-year-round resort. Second, presently it is the mostly undervalued real estate market in the world. The market in Egypt is young and has greatest development potential, comparing with Bulgaria and Montenegro. It offers moderate prices that, in expert’s opinion, will grow within at least three-four years, by about 20-30% per annum.
It is extremely advantageous to buy land on the coast of the Red Sea where new 7-star resorts are created, in such cities as Hurgada and Sharm-El-Sheikh.
Investments into complexes under construction or so-called “initial stage investments” bring perfect return. European citizens readily go to Egypt, buying real estate complexes there, to re-sale the same when prices become higher.
Visa to Egypt is granted when you enter the country and is valid for two months. However, when purchasing real estate of value exceeding $55 000, you are automatically given an opportunity to obtain a one-year-resident visa that is easily extended. Moreover, in such case, some benefits, including vehicle registration or medical services, are accessible on the same conditions and terms like to local citizens.
It should be noted in addition to positive aspects described above that Egyptians are very friendly, hospitable, tolerant of other nations and religions, easily contact foreigners; practically no criminality is registered in the country within recent time.
Why is it reasonably to invest into Egypt?
1) Still low prices of real estate – from 30 000 US dollars.
2) Warm climate (in winter +14С, in summer +36С). Tourism season lasting all year round brings good real estate lease income.
3) Constantly developing tourism industry.
4) Real estate prices growing on year-to-year basis.
5) Since the government appreciates foreign capital investments, the process for acquiring real estate projects is very simple for foreigners.
6) Development of economy stimulates real estate price growth.
7) Political stability in the country.
8) Construction of airports, creation of state-backed air lines in the resorts of Egypt.
9) Low real estate maintenance costs.
Please follow this link:Property in Egypt to see the real estate projects in Egypt that we offer.
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