Egypt Passes Landmark Law Allowing Foreigners to Own Residential Real Estate

In a groundbreaking move, Egypt has recently passed a law that grants foreigners the right to own residential real estate in the country without any restrictions.

In a groundbreaking move, Egypt has recently passed a law that grants foreigners the right to own residential real estate in the country without any restrictions. This pivotal decision, announced in an official statement on July 5, marks a significant shift in the nation's real estate landscape and opens up new avenues for foreign investment.

Under the new regulations, foreigners interested in purchasing residential properties in Egypt are required to pay in foreign currency and complete the transaction through a bank transfer with 100% state capital. This move aims to streamline the process and provide assurance to both investors and the government.

Egypt Passes Landmark Law Allowing Foreigners to Own Residential Real Estate

This law comes as an extension of a broader strategy implemented by Egypt to bolster its foreign currency reserves and attract foreign investment. Just a few weeks prior, in late May, Egyptian Prime Minister Mostafa Madbouly had made the initial announcement that foreigners would be allowed to own property in Egypt without any limitations. Previously, foreigners were only permitted to own a maximum of two properties in the country and were required to ensure that these properties were located in different cities.

The introduction of this legislation is part of a series of comprehensive measures that the Egyptian government has taken to attract foreign currency and encourage foreign direct investment (FDI) in the country. In mid-May, the newly restructured Supreme Investment Council approved 22 decisions aimed at promoting FDI and private investment in Egypt. The council's objective is to increase private sector investment to equal or surpass government investment. The government aims to achieve a scenario where, after three years, the private sector's contribution to the total investment of the economy reaches 60-65%.

One key aspect of Egypt's investment drive is the New Urban Communities Authority (NUCA), which has offered a range of incentives to investment projects in new cities, particularly concerning land use. The aim is to incentivize investment in these newly developed areas, promoting economic growth and urban development across the country.

In addition to real estate-related initiatives, Egypt has also implemented measures to attract foreign currency from expatriates. Notably, the country launched a tax-free initiative on car imports last October with the goal of saving around $2.5 billion in spending.

The passing of this law allowing foreigners to own residential real estate in Egypt signifies a major milestone for the country's property market and overall economy. The government's commitment to attracting foreign investment is evident in its range of policy reforms aimed at creating a more conducive and lucrative environment for investors.

Foreign individuals now have the opportunity to explore the Egyptian real estate market, which boasts a rich cultural heritage, beautiful landscapes, and attractive investment potential. As the country continues to implement measures to encourage foreign investment, it is poised to witness an influx of capital and a revitalization of its real estate sector.

Egypt's decision to remove restrictions on foreign property ownership aligns with its broader vision to diversify its economy, attract foreign investment, and promote sustainable economic growth. With these developments, the nation takes a crucial step towards enhancing its global appeal as an investment destination.