Despite the advance of the global financial crisis on the real estate market analysts predicted the stability of Egypt. Forecasts fully confirmed. What now is the Egyptian housing and what to expect in the future - in our review.
The first crisis in 2009 the Egyptian real estate market has experienced quite easily. And even if some potential buyers to wait, and some builders - mostly those that focus exclusively on foreigners - temporarily changed their pricing policy, focusing on the financial capacity of buyers. Anyway, the crisis has made only minor adjustments.
Reducing affected mainly the segment of the secondary housing, and "primary" almost did not react to global events. More flexible resale price of the secondary real estate due to the fact that the owners (mostly foreign investors) were in need of cash, so the more willingly knocked down the price.
The reasons for such a buoyant market, Olga Vasilieva, independent expert on real estate in Egypt, gives the following arguments. First of all, the Egyptian real estate and so was an affordable price. Low-budget accommodation in the resorts of Egypt has always been and will be demand for it is absolutely stable. In addition, the Egyptian economy has not undergone a crisis trends and the general price level remained unchanged. The country is also popular among tourists, as it traditionally attracts the attention of foreign investors.
Over the past five months of this year, the market situation has changed little, the prices generally remained stable. Of course, there are sales can not be compared with the pre-crisis period, however, emerged in late 2009 market activity is gradually increasing. As noted by Alexander Kotler, head of Egypt Company Kotler Consult, already in February-March, some developers have begun to increase prices, which by the summer grew by 5-15%.
Among the foreign buyers are often the most interesting Russians and citizens of other countries of the former USSR. Some realtors noted a considerable margin Russian-speaking customers from other customers, the most active of whom are British and the Germans.
Most of the Russians focused on low-budget accommodation (up to $ 50 thousand). Most apartments are in the closed complexes in Hurghada. Elena Mishina, director of the Moscow office of the company Cheda real estate & investment, explains the popularity of such housing and its numerous advantages. This protected area with all the necessary amenities - pool, beach, restaurants, and the presence of a management company, which not only provides full support for the municipal complex, but often willing to take the shelter of a foreign owner with a guaranteed income.
In addition to these democratic options in a particular range of customers continue to demand complexes premium on the first line.
The cost of housing by region
Leader of demand by foreigners is Hurghada. The resort is developing rapidly, there are many promising new neighborhoods. For your own holiday or rental should be guided by the central or the residential areas of the city. Cheap enough to buy apartments in the old part of Hurghada, but they are unlikely to yield a considerable profit, as tenants will be mostly local residents. New apartments in walking distance from the sea area of 39 square meters. m sold for $ 27 thousand cost villas Luxury comes to $ 1.5 million
Sharm el-Sheikh, Hurghada, compared with more mature resort - only the hotels here are about two hundred. Although beautifully developed tourist infrastructure, foreigners are not so eager to acquire property here - partly because of higher prices, partly because of the legal peculiarities of purchase (no accommodation is made to the ownership and long-term lease). For example, a studio with a private terrace in a five-minute drive from the resort can be purchased for $ 34.5 thousand
In the segment of low-budget, but quality housing that meets all modern requirements, you can find options from $ 500 per square. m. Prices for objects located on the first line, range from $ 950 up to € 2 thousand sq. m
Among the other famous places to stay - Marsa Alam and Sahl Hasheesh,. At the first apartment of 50 square meters. meters will cost $ 54 thousand on the second - roughly $ 67 thousand for the same housing.
The capital, Cairo - metropolis with a population of nearly 16 million people, a major industrial center - is not popular among tourists who are primarily interested in the sea and beach holidays. For example, a one-bedroom apartments in a luxury complex, built in French style, is $ 198 thousand
Rent and rent
Rent apartments in the range of $ 200-700 per month. Rental rates are traditionally dependent on many factors: how much is liquid object, what is its status (for example, a detached house or a guarded complex with all the infrastructure). The price impact location houses within the same district, as well as the comfort of home (the presence of furniture, air conditioners, maintenance, etc.). The prestige of a residential complex and short term lease significantly increase rents. For example, luxury apartments in the complex with a private beach in Hurghada shall be for $ 150 a day.
To pass his own real estate can be guaranteed a contract of lease with the developer or to take over the agency. As realtors say, the income, which suggest the agency, ranging from 7%.
Mortgage, loans, installment
Mortgages in the usual sense in Egypt no. Banks can provide credit, but one of the main conditions for this is the pledge of an existing property. Importantly, in the calculation takes only Egyptian housing, therefore, for example, the Moscow apartment was not able to provide this guarantee. But in general, bank loans are not a popular financial tool for buyers, because there is much more convenient way - Hire of builders.
Terms of installments may vary, depending on the particular transaction and construction company. Most payments are made within one to two years, sometimes - to four or five. In rare cases, may be extended to ten years. The amount of overpayment also varies depending on the term. Installments can be as interest-free and provided at 5% or even 8% per annum.
Projections for the second half of 2010 have even quite optimistic. The crisis gradually recedes, and buyers will be interested in more expensive objects - Alexander Kotler. Naturally, queries on the democratic options for up to $ 50 thousand remain, but the fall in the market may appear and larger investors.
Olga Vasilyeva also confident that the market will move. The summer season is traditionally expected to be more active than the winter. Customers often combine business with pleasure, that is, during his summer vacation trying to solve all the questions on purchasing real estate. Now in the market indicated a substantial shortfall of residential property, and in the near future on the Egyptian resorts can expect an increase in construction volumes. And in favor of investor interest, like an expert, says the fact that the World Economic Forum (WEF) has enlisted Egypt in seven countries, the most favorable for investors.