Everything you need to know about investing in residential and commercial real estate in Egypt

Nov 13, 2023 - 23:46

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Real estate in Egypt

Many people tended to invest their money to ensure the future. Some of them tend to invest their money in certificates offered by banks, and some of them tend to invest in gold, but most tend to invest in real estate, which is considered one of the best and safest forms of investment in Egypt.

There are many types of real estate investment in Egypt; They include residential, commercial, administrative and industrial. But below we will shed more light on everything related to investing in residential and commercial real estate and the advantages of each.

Investing in residential real estate

Investment in residential real estate is an investment in buildings used for residential purposes, i.e. designated for housing individuals or families only. Among the types of residential properties are apartments, duplexes, studios, townhouses, twin houses, villas and chalets. Investors in these properties can rent the property or sell it after a period of purchasing it.

Investment advantages

There are many advantages that an investor gets by investing his money in residential real estate, including:

• It is easy to find a buyer or renter because residential properties are always in high demand as people are always in need of a place to live.

• With the increase in the number of foreigners in Egypt every year, the demand for residential real estate increases. Some of them rent a property to spend their vacation, and some of them invest in a property for profit, and this is called exporting real estate.

• Selling real estate easily, especially if the property is located in a lively area close to famous places.

• The cost of investing in residential real estate is much lower compared to commercial real estate.

• The return on investment in residential real estate ranges between 5% to 7% annually.

• The lease term extends from 1 year to 3 years and sometimes up to 5 years.

other information:

• The landlord deals with tenants directly and does not contract with a property management company because its cost will be more than the residential rental fees.

• Requires the landlord to repair and maintain any damages caused by the tenant to the property before renting it out again.

Investing in commercial real estate

Commercial real estate investment is an investment in real estate that is not used for residential purposes and is a type that investors resort to for trade. Among the types of commercial real estate are offices, stores, commercial markets, commercial centers, malls, stores, warehouses, and commercial lands.

Investment advantages

Investing in commercial real estate has many advantages, including:

• The lease term extends for a longer period than residential properties and can start from 3 years and reach 10 years.

• The return on investment is higher compared to residential real estate, starting from 6% and reaching 15% annually.

• The landlord has nothing to do with any maintenance or repairs in the commercial property, and the tenant is responsible for all of this and will carry it out in a way that suits his business.

• The landlord does not deal with tenants directly if it is related to their problems or rent collection. All of these things are managed by a property management company.