Prime Minister Dr. Mostafa Madbouly has issued a new decision aimed at strengthening the real estate market by regulating foreign ownership of properties. The move is considered one of the government’s key tools for attracting foreign investment, increasing foreign currency inflows, and stimulating the real estate sector in line with the state’s strategy to maximize the value of Egypt’s real estate assets.
Engineer Mohamed Ghabashy, Secretary-General of the Real Estate Developers Association and Chairman of the Real Estate Valuation Association, said that the government’s expansion of foreign property ownership sends a positive message and serves as an important incentive for supporting Egypt’s real estate market.
However, he noted that the impact of the decision will not be immediate but will emerge gradually as the government continues simplifying property ownership procedures for foreign investors and buyers.
He explained that the easier and more transparent the ownership process becomes, the greater the increase in property sales to foreigners. He also emphasized the importance of directing marketing efforts toward buyers from Arab countries who are seeking stable investment destinations amid the security and economic challenges facing some regional markets.
Ghabashy also highlighted the need to reconsider the marketing strategy for tourism-related real estate by offering properties under usufruct rights, particularly in the Red Sea, South Sinai, and the North Coast.
He stressed that the market requires a comprehensive marketing plan targeting foreign buyers while promoting Egyptian tourism alongside residential, commercial, and tourism properties to enhance foreign investment opportunities.
Property Registration and a Unified Ownership Contract Among the Key Demands for Attracting Foreign Real Estate Investors
He added that successfully attracting foreign real estate investors requires providing genuine incentives, foremost among them establishing clear mechanisms for property registration. He pointed out that discussions surrounding Egypt’s National Property Identification Number have continued for years without a clear implementation framework.
He also noted the absence of a standardized ownership contract that protects the rights of foreign investors and buyers while complying with international laws and standards, describing this as a fundamental element in building investor confidence.
Ghabashy also stressed the importance of announcing clear regulations governing the transfer of investment profits abroad, allowing investors to fully understand the procedures for repatriating returns generated from their investments in Egypt. He explained that transparent mechanisms provide greater reassurance to investors and enhance the attractiveness of the Egyptian market.
Residency and Citizenship Through Real Estate Investment Among the Most Important Competitive Advantages
Ghabashy emphasized that exchange rate stability is a key factor in attracting foreign investment, noting that continued fluctuations in the U.S. dollar exchange rate discourage foreign investors from making new investments. Maintaining stability in the foreign exchange market, he said, would significantly strengthen investor confidence in Egypt’s economy.
He also called for introducing more flexible incentive programs that grant residency permits to foreign investors in exchange for purchasing property. Additionally, he urged the government to reconsider the minimum property value required to qualify for residency by lowering it to more competitive levels, thereby expanding the pool of eligible investors and increasing demand in the Egyptian real estate market.
Furthermore, he proposed linking the granting of Egyptian citizenship to real estate investment under clear regulations and specified investment thresholds, emphasizing that residency and citizenship programs are among the most effective incentives used by many countries to attract foreign real estate investment.
Finally, Ghabashy stressed that Egypt’s real estate market also needs dedicated mortgage financing programs for foreign buyers through Egyptian banks. He suggested that these financing schemes be secured either by the property itself or by guarantees from the real estate developer, while ensuring adequate safeguards that balance investor rights with the stability of the financial system, ultimately contributing to increased foreign demand for Egyptian real estate.