Buying a property in Cairo: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Cairo's property market is included in our pack

Considering buying a nice property in Cairo? You're not alone!

Many people are fascinated by Cairo's ancient history and dream of owning a historic townhouse or a modern apartment in this Egyptian city.

Is it a wise investment, though? Are property prices increasing in Cairo? How much does it cost? Should you consider buying in Zamalek or Maadi? What are the property taxes? Where are the best rental yields?

We know the answers.

The SandsOfWealth team has done their homework on this market. Actually, we've gathered all our findings in a pack. Get it now.

In this article, we'll provide you with helpful information.

How's the real estate market in Cairo?

Confused about the property market's status? Everyone has their views. As for us, we prefer stick to new data and stats for clear conclusions.

Property types

In Cairo, you can find various types of properties for sale, including apartments, villas, townhouses, and commercial spaces.

Apartments are typically found in multi-story buildings and offer different sizes and layouts to suit different needs. Villas provide standalone houses with more space and privacy, often coming with gardens or yards. Townhouses are a mix of both, offering a bit more space than apartments and a sense of community.

Commercial properties include shops and offices available for purchase, suitable for starting or expanding businesses.

Buying or renting?

(If you plan to use it yourself and not as a rental)

If Cairo is your city of choice, you might be considering whether it's better to buy a property or opt for renting in this bustling Egyptian capital.

Without a doubt, it's better to buy if you want to have a stable and secure living situation in Cairo.

Want to make a good decision? Check out the property price-to-rent ratio. This helps you understand the connection between rental income and the property's current price in terms of years.

According to Numbeo, the property price-to-rent ratio in Cairo is around 12.09, which is quite low.

Consider this: the average period it takes to accumulate sufficient rental payments for purchasing a property is merely 12 years.

Property prices in Cairo

On average, according to the last data from Central Agency for Public Mobilization and Statistics (CAPMAS), buying a property in Cairo would cost you around $700 per square meter.

There are significant differences, clearly. The value of a square meter for a Nile-view apartment in Cairo might differ from a suburban villa in Sheikh Zayed. We actually offer a more in-depth analysis in our pack for buying property in Cairo and in Egypt.

To put things in perspective, it is 27 times less (yes, you read it correctly) than the prices in the center of New York.

Also, housing prices in Cairo are 73% cheaper than in Istanbul.

The most expensive neighbourhoods in Cairo are probably Zamalek, Maadi, and Heliopolis, while the cheapest areas are those located in the outskirts of Cairo such as El-Salam City and El-Shorouk City.

Trends

First and foremost, we have to acknowledge that Egypt is currently a highly vulnerable country. The last Fragile State Index that has been reported for this place is 83.6.

Consider this when wondering if it's a good investment to buy a property in Cairo.

Also you probably want to know that, according to the IMF, Egypt's economy is expected to soar by 22.7% in the coming 5 years, resulting in an average GDP growth rate of 4.5%.

If you want to invest in real estate in Cairo it's a good thing because a positive growth rate (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.

Also, in Egypt, the average GDP per capita has changed by 12.5% over the last 5 years. It's far beyond the global average.

These are cues signaling that property prices in Cairo might go up in 2024 and during the coming years.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Egypt right now.

Buying property in Cairo

Buying real estate in Cairo can be difficult due to the lack of reliable and updated information available during the purchasing process. That's why we have created the pack to buy property in Cairo and in Egypt.

Buying process

In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.

Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.

This is the step-by-step process to purchase a property in Cairo:

1. Research the Cairo real estate market and choose the desired location.
2. Appoint a registered real estate agent ("Wakil") to assist you in the process.
3. Obtain a copy of the property's "Sakn Girb" (Land Registry) to verify ownership.
4. Negotiate the price and terms with the seller, outlining any special conditions in the "Mo'ahed" (contract).
5. Pay a deposit (usually 10%) upon signing the Mo'ahed.
6. Conduct due diligence, including verifying building permits and unpaid utility bills.
7. Obtain a "Taqrir Ta'amul" from the local district to confirm the property's legal status.
8. Secure financing or arrange payment details.
9. Complete the "Aqabat" (contract) signing, paying the remaining amount.
10. Register the transaction at the "Ma'mar" (Notary Public) and "Adl" (Registry Office).
11. Pay the property taxes at the tax authority office.
12. Receive the "Qarar" (Final Contract) and "Malikia" (Title Deed) officially transferring the property ownership.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Egypt.

Make a profitable investment in Cairo

Better information leads to better decisions. Save time and money. Download our guide.

Download Now

Where to find a property

If you're looking for properties in Cairo, these websites can help:

• Property Finder - A real estate platform in Egypt that offers the ability to buy, rent, or explore various properties.
• Royal - Find your property in Assiut here.
• A Place in the Sun - A property marketplace specializing in overseas properties for sale in Egypt's Red Sea Riviera/Sinai region.
• Savills - A real estate company specializing in property services, including buying, renting, and selling residential and commercial properties internationally.
• Rightmove - Explore a variety of properties for sale in Egypt, including apartments, villas, and houses in different locations.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Egypt.

What you can get

As mentioned before, the average price per sqm in Cairo is $700. It means that a 1-bedroom property (60 sqm) would cost around 42,000$ and a 2-bedroom (85 sqm) would be around 60,000$.

Of course, the price of properties can be influenced by their qualities and the area they're in.

Top neighborhoods in Cairo will be pricier. A house in Zamalek might be about $130,000, while a property in Garden City could cost around $70,000.

On the other hand, some areas are more budget-friendly. You can locate a house in Maadi for $50,000 or a house in 6th of October City for just $40,000.

We give more details about property types and areas in our full pack for buying property in Egypt.

Risks and pitfalls

Here are the main pitfalls when buying a property in Cairo, Egypt:

• Land ownership: Conflicting claims and unclear land boundaries due to informal settlements and historical complexities.
• Bureaucratic red tape: Lengthy and convoluted processes for obtaining permits and property documentation.
• Deserted areas: Risk of buying in underdeveloped desert areas without proper infrastructure and utilities.
• Property encroachments: Prevalence of informal construction leading to potential boundary disputes.
• Unfinished developments: Some projects may remain incomplete due to financial or legal issues.
• Nile River restrictions: Properties near the Nile River may have specific usage limitations and development restrictions.
• Cultural heritage sites: Buying near historic sites may impose strict regulations on property alterations.
• Water and sewage issues: Older properties might face challenges with water supply and sewage systems maintenance.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Egypt Property Pack

Living in Cairo

Living in Bali is an incredible experience, with its stunning beaches, lush jungles, vibrant culture, and friendly locals, it is an ideal destination for those looking to buy property and enjoy a relaxed island lifestyle.

Cost of living

The cost of living in Cairo is generally quite affordable, with a wide range of housing options available at reasonable prices. Food and transportation costs are also quite reasonable, making Cairo a great place to live on a budget.

Here are some examples to better understand the cost of living in Cairo, Egypt:

• Hibiscus tea (Karkade): $1 at a local café in Zamalek.
• Rent for a one-bedroom apartment in Maadi neighborhood: $500/month.
• Koshary (traditional Egyptian dish) for two at a local eatery: $15.
• 1.5-liter bottle of Sakara Gold beer: $2 at a supermarket.
• Electricity bill for an 85m² apartment using Egypt Electricity Holding Company: $70/month.
• Monthly membership at Gold's Gym in Heliopolis: $50.
• Ticket to a movie at CityStars cinema: $7.
• Cup of Turkish coffee at El-Fishawy Café in Khan El Khalili: $2.

Neighbourhoods

Since we want to present information in a way that's clear and reader-friendly, we've prepared a summary table that outlines the various neighborhoods in Cairo. For yields, prices and rents, check our property pack.

Life in Cairo

Cairo's economy is largely driven by tourism, manufacturing, and services. The city's economy is also bolstered by its strategic location as a transportation hub, as well as its role as the political and cultural center of Egypt.

What expats usually like the most in Cairo is the vibrant local culture and the diverse range of activities available. From the bustling souqs of Khan el-Khalili to the ancient pyramids of Giza, Cairo has something for everyone.

Unfortunately, there is a bit of crime in Cairo (the crime rate index is around 50, which is not so low. Common crimes in Cairo include pickpocketing, robbery, assault, and other forms of property crime, which primarily affect the local population and are generally not a concern for expats.

A good point for a property investor - Cairo has an extensive mass rapid transit system consisting of metro lines, commuter rail, and bus lines.

Finally, access to healthcare in Cairo is good, with a Healthcare Index of 46. Good healthcare facilities is a positive indicator in a real estate market.

Don't lose money on your property in Cairo

100% of people who have lost money in Egypt have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

Renting out in Cairo

This section is for you if you're interested in purchasing property not for personal residence, but rather for the purpose of renting it out to generate rental income.

Long-term

Tenant Profiles in Cairo

According to the data reported by Wikipedia, the home ownership rate in Egypt is 76%, which is average.

It means that, if you decide to buy and rent out in Cairo, there will be a good number of people who can become your potential tenants.

If you decide to buy and rent out to long-term tenants, you should target expatriates, students, and young professionals in Cairo, as these groups are most likely to be looking for a long-term rental. In addition, there is a large population of low-income families who may be looking for short-term rentals.

Here is a little summary table we've made for you.

Rental yields

These days, Cairo presents attractive opportunities in terms of rental yields. In fact, you can easily achieve yields above 9% due to the current low property prices in Cairo's real estate market.

The best rental yields in Cairo are typically found in properties located in densely populated neighborhoods close to public transportation and local amenities. This is because these properties are in high demand, allowing landlords to charge higher rental rates and increase their returns.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Cairo are taxed at 22%, which is not bad.

Short-term

You could also decide to rent short-term to business travelers, tourists, and students visiting Cairo for a short period of time. Additionally, you could rent to locals who are relocating to Cairo and need a short-term place to stay while they are searching for a permanent residence.

If you decide to go with that option, look for properties in Zamalek, Maadi, and Heliopolis. These areas are known for their high rental demand due to their proximity to the city center and major attractions.

Currently, there are approximately 4,000 active Airbnb listings in Cairo, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $62.

You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Cairo can make around $500 per month. Also, the average occupancy rate is estimated at 42%.

Is it worth buying real estate in Cairo then?

Buying a property in Cairo can be a smart move, but it's not a one-size-fits-all decision.

If you want stability and plan to live in Cairo for the long haul, buying is a great idea. The property price-to-rent ratio is low, meaning it takes just 12 years of rental income to buy a property. Plus, Cairo's property prices are a steal compared to cities like New York or Istanbul. Egypt's growing economy and rising middle class indicate that property prices could continue to climb, making it a potentially profitable investment.

However, it's not all smooth sailing. Cairo's property market comes with hurdles like unclear land ownership, bureaucracy, and potential infrastructure issues. If you're up for the challenge, the rewards can be substantial, especially in terms of rental income. Cairo's low cost of living makes it attractive for renters, and rental yields can exceed 9% in the right neighborhoods. Short-term rentals are also booming, offering opportunities to earn extra income.

In a nutshell, buying property in Cairo can be a savvy choice for those seeking long-term stability and potential profits, but it's essential to be prepared for the unique challenges the market presents.

Make sure you understand the real estate market in Cairo

Don't rush into buying the wrong property in Egypt. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Download Now

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.