Egypt: Overview
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Price/GDP per Cap
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
House price growth in
Egypt continues strong
House prices are moving up strongly in Egypt. However the past two years have not seen strong price movements in the Cairo areas mainly covered by the Global Property Guide - Maadi, Zamalek, Mohandessine, and New Katameya. Most price appreciation has taken place in the new developments, such as Katameya Heights (see Price History), and in the massive new developments on the Red Sea and now on the Mediterranean, which are opening up the country to large-scale European purchases at very low cost.
Foreigners cannot register more than two pieces of real estate, which cannot exceed 4,000 square metres (sq. m.), and their purpose must be for a family member to live in. The property cannot be sold or rented for the first five years. The purchase sum must be brought into Egypt in foreign exchange. When ultimately rented, property owned by a foreigner must be rented furnished, which has very major tax disadvantages.
One way around these restrictions is the ‘signature validity court verdict’, which is explored in the ‘Buying Guide’. This avoids formal registration, and allows resale of the property immediately.
RENTAL YIELDS
Last Updated: Aug 22, 2008
Rental yields in Maadi are still spectacular
Rental yields in Maadi are still spectacular at an average of 12%. Although 5% lower from 2007 Global Property Guide estimates, foreigners still like to live there. Prices start from US$600 per sq. m., to around US$1,000.
Yields for Mohandesseen apartments are excellent at an average of 7%. Mohandessine remains to be attractive to rich locals. Apartments in the Heliopolis district, cost around US$ 141,000 to buy for a 155 square metred sized property and US$318,00 for properties nearly twice that size.
Overall average of 9% for all Egyptian districts, ranging from 6.28% to 12%.
TAXES AND COSTS
Last Updated: Nov 27, 2008
Moderate taxes in Egypt
Effective Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 10.0% | 10.0% | 10.0% |
| Click here to see a worked example | |||
Source:![]() |
Disclaimer | ||
Rental Income: Rental income is taxed at the standard income tax rates. The maximum deduction allowed to cover operating expenses is 50% of the gross rent.
Capital Gains: There is no capital gains tax.
Inheritance: Inheritance tax was abolished in Egypt in 1996.
Residents: Residents are taxed on their worldwide income at progressive rates, from 10% to 20%.
BUYING GUIDE
Last Updated: Oct 02, 2007
Moderate costs; complicated buying process
Round-trip transaction costs are around 10.85% to 12.3%; mostly consisting of the real estate agent’s fee (2.5% to 3% plus 10% sales tax), legal fees (3%), transfer tax (2.5%) and capital gains tax (2.5%). Investors should be cautious of the complex ownership and registration process; e.g., only around 10% of properties in Cairo are registered and there are numerous foreign-ownership restrictions.
LANDLORD AND TENANT
Last Updated: Jul 25, 2006
Egypt's landlords are weakly protected by law
Rent: New tenants do not enjoy rent protection. Nor do they have the right to remain in the apartment at the expiry of the contract, although in the socialist past Egypt’s rental market was highly regulated.
Tenant Security: If however tenants do not leave, in Egypt eviction can easily take more than a year. So it is preferable to rent to foreigners, who are less likely to overstay.
ECONOMIC GROWTH
Last Updated: Oct 01, 2007
Continued economic growth
Best known for pyramids, pharaohs and the Nile River, Egypt serves as a vital gateway between Europe and Asia. About two-thirds of Europe’s oil passes through the Suez Canal. Egypt has a population of 75 million and GDP per capita of US$1,518.
There is a sense of optimism in Egypt. Though the economy continues at a modest annual 5% GDP growth, inflation has been dramatically reduced from 11.40% in 2005 to 4.40% in 2006. The privatization and customs reform measures announced in late 2003 and early 2004 have begun to take effect. Egypt is benefiting from new money from the Gulf, which sees it as less risky than either Lebanon or Jordan, and is increasingly being used as a business process outsourcing centre. In addition, there is enormous interest in Egyptian property from Europeans.
Pressures on the overvalued Egyptian pound led the government to float the currency in January 2003, leading to a sharp drop in its value. The lower currency has allowed expatriate Egyptians to enjoy huge drops in real estate prices, which has helped boost the property market. Since the war in Iraq in 2003, tourism and Suez Canal revenues have fared well.
The passing of the Real Estate Finance Law (148/2001) in May 2001 has begun to create a real mortgage market. For the first time since the 1948 civil code, banks can now repossess properties and evict owners who default on loan repayments. The new mortgage lending has been positive for the housing market.
Politics is increasingly a worry. The last presidential and parliamentary elections were highly fraudulent, returning the same president of the past 25 years, Hosni Mubarak, at the head of the same ruling party.
The regime is corrupt and unpopular. Arbitrary arrests touch not only the extremists, but also the middle class. There is general agreement that Egypt's oldest Islamist group, the Muslim Brotherhood, would win any free election. Unfortunately, the Brotherhood’s leadership is low quality, and it has no policies except Islam. Faced with a choice between the corrupt present regime and the Muslim Brotherhood, the middle class will choose the former – for the present.

RESIDENTIAL PROPERTY AROUND THE WORLD
Asia & Pacific
Looming housing slump in China
America & Caribbean
The great U.S. housing market crash
![]() |
|
![]() |
|
| RESIDENTIAL PROPERTY FACTS | |
| Price (sq.m): $595 For a 140 sq. m. property, usually an apartment. | Rental Yield: 12.00% For a 140 sq. m. property, usually an apartment. |
| Rent/month: $833 For a 140 sq. m. property. | Income Tax: 10.00% Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income. |
|
Roundtrip Cost:
11.7%
The total cost of buying and then reselling an apartment. Includes: * all transaction taxes and charges: * lawyers' and notaries' fees * agents' fees Assumptions: The buyers are non-resident foreigners. The apartment cost US$250,00 / €250,000. |
Cap Gains Tax: 0.0 Assumptions: The property was bought for US$250,000 / €250,000, and sold 10 years later, after a 100% appreciation. |
| Landlord & Tenant Law: Pro-Tenant Rating is based on a detailed study of each country’s law and practice. | |
APRIL 2009
- Egyptian real estate remains immune to world crisis - Property Wire
FEBRUARY 2009
- Property firms pull down Egypt index on profit fears - Daily News
- Egyptian bank says may buy stake in UAE's Damac - Reuters
NOVEMBER 2008
Subscribe to our Newsletter!
Enter your email address to sign up.






RSS