Buying a property in Hurghada – Legal aspects about the laws and regulations in Egypt

Freehold properties are available in Hurghada and if buying in a new development, prices are often set with no room for negotiation. However, if you buy a property in Hurghada from a resale, there is often room to negotiate the price.

Many Egyptian property owners / developers prefer “cash” payments, which are more beneficial to the buyer as it often means a discount on the sale of around 5% and / or may include longer term credit agreements on refunds.

Once you have paid for your Hurghada property in full and it has been validated or registered by signing the validity process, you will receive a green contract, which is the contract that is awarded to you by the Egyptian courts. This only applies to freehold properties.

When buying property in Hurghada, buyers should be aware that there is an additional fee known as a “buyer’s commission”. This is an additional charge made by the Agent handling the transaction on your behalf and is a normal procedure. The rate can range from 1.5% to 5% depending on the region.

When deciding to purchase a property in Hurghada, you will need to start the process of hiring a good Egyptian lawyer.

Attorney contracts should always be in English and Arabic, and a deposit is usually required at this stage.

The deeds to your property in Egypt are assigned to you at the property registry office and the cost of this per property is a maximum of EGP 2000.00, around £ 175 (as of June 2008).

When you buy a property in Hurghada, you must have an entry visa, as it is necessary to complete the residency procedure in Egypt to give your lawyer a power of attorney to go to court on your behalf and register your property. You must also apply for the residence entry visa, which are generally valid for one year.

When buying a property in Hurghada, there are two procedures, first a complete registration and the second to choose the Validity Signature process. Registering a property gives you maximum security under Egyptian law.

However, even in areas of Egypt where foreigners can acquire freehold ownership, the valid signature can be used instead of the registration.

While all of this information may seem difficult to digest, it is actually much simpler than it sounds. If it was a difficult process, then there would not be such a large investment here in Real Estate Hurghada by foreign investors, which is growing year after year on a large scale.