How to Buy Property in Hurghada: From First Visit to Contract – Realistic Timeline

Buying property in Hurghada is a dream for many—whether for investment, relocation, or a holiday home. But navigating the process can feel overwhelming. This guide breaks down every step, from your first visit to signing contracts, with a realistic timeline tailored for foreign buyers.

Why Invest in Hurghada Real Estate?

Before diving into the process, understand why Hurghada is a top choice:

• Booming tourism = high rental demand.
• Affordable prices compared to Europe.
• Tax-free ownership for foreigners in designated areas.
• Stable market with long-term growth potential.

Step 1: Pre-Visit Preparation (1–4 Weeks)

Research & Budgeting

• Define your goals: rental income, residency, or personal use.
• Explore Hurghada neighborhoods:
  • Sahl Hasheesh: Luxury villas.
  • Makadi Bay: Beachfront apartments.
  • Downtown: Budget-friendly options.
• Get pre-approval for financing (if needed).

Connect with a Local Real Estate Agent

A Hurghada-based agent can:

• Shortlist properties matching your criteria.
• Arrange viewings.
• Advise on legal requirements for foreigners.

Step 2: Property Viewing Trip (3–7 Days)

Day 1–2: Neighborhood Tours

• Visit shortlisted areas to compare amenities (schools, hospitals, beaches).
• Inspect off-plan vs. resale properties.

Day 3–5: Viewings & Shortlisting

• Tour 5–10 properties with your agent.
• Check for:
  • Title deed status (freehold vs. usufruct).
  • Maintenance fees and hidden costs.

Day 6–7: Narrow Down Options

• Revisit top 2–3 properties.
• Discuss price negotiation strategies.

Step 3: Due Diligence & Legal Checks (2–4 Weeks)

Property Verification

• Ensure the seller owns the title deed (Taqseet).
• Confirm no outstanding debts or legal disputes.

Reservation Contract & Deposit

• Pay a 10% deposit to reserve the property.
• Sign a preliminary contract (binding for both parties).

Hire a Real Estate Lawyer

• A local lawyer will:
  • Review contracts.
  • Verify zoning laws.
  • Assist with power of attorney (if buying remotely).

Step 4: Finalizing the Sale (4–8 Weeks)

Payment & Taxes

• Transfer funds via a local Egyptian bank (required for foreigners).
• Pay 2–5% property tax (varies by location).

Signing the Final Contract

• Both parties sign at the Notary Public or Registry Office.
• Receive the title deed (Fezza) under your name.

Post-Purchase Steps

• Utilities registration (water, electricity).
• Property management (if renting out).

Step 5: Long-Term Ownership Tips

• Rental management: Hire an agency for 8–12% commission.
• Residency: Foreign buyers can obtain a renewable 5-year visa.
• Resale market: Hold for 3–5 years for best ROI.

Step 6: Financing Options for Foreign Buyers

If you’re not purchasing your Hurghada property in cash, understanding financing options is crucial. Many international buyers assume mortgages aren’t available, but Egypt’s real estate market has evolved to accommodate foreign investment.

Local Egyptian Banks

Some Egyptian banks offer mortgages to foreigners, though terms vary:

• Loan-to-Value (LTV): Typically 50–70% of the property value.
• Interest Rates: 8–12% (higher than EU rates but competitive regionally).
• Requirements: Proof of income, passport, and a down payment (30–50%).

Developer Financing

Many off-plan projects in Hurghada provide installment plans:

• Down Payment: 10–30%.
• Payment Period: 3–5 years (often interest-free if paid early).
• Example: A €100,000 apartment might require €10,000 down, then €1,500/month for 5 years.

International Mortgage or Equity Release

• Transfer existing equity from a home country property.
• Expat-friendly lenders (e.g., UAE banks) may finance Egyptian purchases if you’re a resident there.

Currency Considerations

• Properties are priced in EGP, EUR, or USD.
• Exchange risks: If paying in installments, lock in rates early.
• Legal note: Foreigners must transfer funds through an Egyptian bank to prove legality.

Avoiding Pitfalls

• Pre-approval: Get a mortgage agreement in principle before viewing.
• Hidden fees: Factor in notary fees (1–2%), agent commissions (2–5%), and insurance.

Financing your Hurghada property adds steps but expands opportunities. Work with a local mortgage broker to compare options efficiently.

For summary

Buying property in Hurghada takes 3–6 months from first visit to contract. Partner with a trusted agent, conduct thorough due diligence, and understand legal steps to ensure a smooth purchase.

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