Real estate export to help replenish the budget with foreign currency
The Egyptian government has decided to change the rules governing foreign citizens’ purchase of residential property. The country plans to introduce real estate exports, which will provide the opportunity to buy and rent properties for foreign currency. This initiative will be available to both foreign investors and expatriates.
Egypt plans to set up a separate company to implement the programme. This company will be responsible for managing the export and rental process. The revenues from implementing the initiative could bring USD 2 to 3 billion to the country’s budget.
For foreign investors, participation in the export programme will bring additional benefits. In addition to being able to pay for the purchase of real estate in hard currency, they will receive a residence permit for 5 years. The government also undertakes to buy back the property at full value after 10 years. While the initiative is still in the pipeline, the authorities are considering involving public and private developers.
Reasons for introducing the real estate export scheme
The export of real estate is part of Egypt’s national initiative. The aim is to increase foreign exchange earnings for the budget. The government plans to increase investments to USD 300 billion by 2030. This amount includes investments in the following sectors:
– the tourism sector;
– remittances from Egyptians working and living abroad;
– foreign direct investment;
– exports;
– Suez Canal revenues, taking into account the outsourcing of export services.
The start date of the programme is not yet known. In addition, the government is not providing details on how the property export mechanisms will work.
Benefits of the country for investors
Egypt is becoming an increasingly attractive destination for foreigners. Knight Frank said the country was the Persian Gulf’s most attractive real estate market by 2023. The findings come from a survey of affluent buyers with more than USD 1 million in capital. 94% of respondents from the region prefer to buy property in Egypt, and 56% plan to make deals this year.
Local property experts cite political stability and economic growth as driving demand. In addition, properties in Egypt offer a high return on investment.
From 2021 to 2023, regional buyers will invest USD 118 billion in the property market. At the same time, the total share of investment in this sector and the construction sector is 16% of the country’s GDP. Regarding this indicator, the segment is second only to the oil and gas industry, whose contribution to GDP is 24%.
In terms of location, the Greater Cairo area is the most popular with investors. Buyers from Saudi Arabia, the UAE and Qatar favour properties in the northern part of the country.