The property sector in Egypt witnessed a boom since the beginning of 2011, when property sales averaged approximately 3,000 transactions per month. In 2013, property prices increased by 60 percent due to the shortages in supply and demand from young Egyptians who were keen on investment.
Among property investors there are those who buy apartments for renting out while there are others who prefer to purchase property for their own usage. However, it is often the case that investors tend to buy a property without considering all possible details before investing in one to avoid burdensome regrets later on.
This article addresses some aspects which should be taken into consideration before buying a property in Egypt:

Location:

Whether you intend to buy property for personal use or as an investment, it is recommended to buy property in the area where you actually intend to live in. This factor is especially important when it comes to property prices because property prices in areas are much higher than those of other areas although they might be located at a distance from the center and have high traffic rates.

Property Prices:

When buying property, you must set a range on which you are considering to buy property within. Set your budget as per your needs and keep it fixed before starting off with property search. The cost will vary depending by location; for example, property costs more in Nasr City and less in New Cairo or 6th October City [Editor’s note – though if this is still true I don’t know]. It also depends on what kind of property you buy. If you wish to rent property out, it will cost less than property you intend to live in. Moreover, property prices vary from one developer or company to another; hence, consider the reputation of the developer before buying property from them.

Property Rights:

While purchasing property, if anything goes wrong with your property (whether it is due to negligence or some other error) be sure that there are a set of laws which protect you and a body responsible for enforcing them. The last thing you want is facing illegal situations by themselves while having no legal recourse. So make sure that your property has valid title deed (Editor’s note – I have unfortunately heard more than once about properties being decided as “illegal” even though they have everything in order)

Environment:

Investing property for renting it out, make sure that the property is located in an area where there are good social facilities such as schools, hospitals and other public amenities to provide a decent living condition for your tenants. It will also make you feel at ease having another property to visit if needed. This is due to the fact that the place must be livable or else you would have to keep on going back and forth between your properties and home (although this might not be an issue when property prices are high).

Ownership Type:

There are two types of ownership; whether you buy property directly from the developer or from a bank. In both cases, you will be liable for maintenance costs of property; hence, it is better to consider property ownership type before making your decision. Moreover, when buying property directly from the developer there are many factors you should check before buying one such as: payment of installments (as in a number of years), number of installments for property completion and advertisement fees.

Property Management:

A property manager will help you stay on top of maintenance issues, rent collection and other responsibilities that might otherwise fall through the cracks. It is often hard to find a good property management company due to many reasons including the lack of experience (which can be fixed by looking at their portfolio). Most importantly they must have a network with different tradesmen and contractors (Editor’s note – look up their social media accounts first).

Insurance:

Before property purchase, it is important to get property insurance from an insurance company. The property may be subjected to different natural disasters such as floods or heavy rainfalls which might damage property. In case of any property damage due to natural disasters, you will have your property insured and then rebuild it again depending on the extent of the damage. Types include commercial property insurance and home insurance (Editor’s note – look for fire protection too).

In Conclusion:

In short, there are many factors that must be considered before purchasing a property in Egypt; however, if you consider them beforehand you will enjoy your investment.