How Much Does It Cost to Buy a House in Egypt?

Egypt’s real estate market presents a dynamic landscape, attracting local and international buyers. The country’s ongoing urban development, coupled with a growing population and strategic initiatives to encourage foreign investment, contributes to a vibrant housing sector. Understanding the financial aspects of acquiring and maintaining a home in Egypt is important, including costs beyond the initial purchase price and available financing options.

Key Factors Affecting Property Prices

Several variables influence real estate prices across Egypt. Geographic location plays a significant role, with prices varying considerably between urban centers like Cairo and Alexandria, resort areas along the Red Sea coast, or new administrative cities. Property type, such as apartments, villas, or chalets, also impacts cost. The overall size of the property, measured in square meters, directly correlates with its value.

A property’s age and current condition affect its market price. Newer developments or well-maintained resale properties often command higher values than older structures needing extensive renovations. Amenities like gated communities, swimming pools, or integrated services significantly add to a property’s appeal and cost. Economic factors such as inflation and currency fluctuations also influence property prices, leading developers and owners to adjust pricing to offset increased construction and living costs.

Understanding the Property Purchase Price

Property prices in Egypt exhibit a wide range, reflecting diverse locations and property types. In mid-2025, apartment prices start from approximately EGP 7,300 per square meter in Alexandria, offering a budget-friendly coastal option. Conversely, prices in Cairo’s New Administrative Capital, a premium growth area, can reach around EGP 27,600 per square meter for apartments. New Cairo, including areas like the Fifth Settlement, sees apartment prices averaging EGP 23,800 per square meter.

For villas, prices typically start from EGP 13,850 per square meter in Alexandria. In more upscale areas, such as Sheikh Zayed, villa prices average around EGP 24,400 per square meter, while the North Coast, popular for tourism and vacation homes, commands similar premium pricing at EGP 26,100 per square meter for apartments. Red Sea resort towns like Hurghada offer a range, with one-bedroom apartments starting from $10,000 and villas from $145,000. Prices can vary significantly within compounds or based on proximity to the coast. These figures represent the base property price before any additional acquisition costs.

Additional Costs of Acquisition

Several additional upfront costs are involved in acquiring property in Egypt beyond the purchase price. Registration fees are mandatory to formally transfer property title. Law No. 9 of 2022 caps the registration fee for real estate and apartments at a maximum of EGP 3,900. An additional fee of 1% to 3% of the property’s value, typically 2% for residential properties, is paid to the Notary Public to finalize ownership transfer.

Legal fees for hiring a lawyer to conduct due diligence, review contracts, and assist with registration typically range from 1% to 3% of the property’s value. This professional assistance is important for navigating property law complexities. Real estate agent commissions for sales generally range from 1% to 3% of the sale price. In most cases, the seller is responsible for paying this commission, though terms can be negotiated.

Many new developments and compounds require a one-time maintenance deposit, typically 8% to 10% of the total unit price. This deposit funds ongoing maintenance of common areas within the development. Buyers should also anticipate utilities connection fees for new properties, which can include a fee of approximately $250 for re-registration of water and electricity meters. If funds are transferred internationally, bank transfer fees and currency exchange spreads will apply; comparing different service providers for favorable rates is advisable.

Financing Your Home Purchase

Purchasing a home in Egypt can be financed through several methods. Cash purchases are prevalent and can result in discounts ranging from 5% to 15% from developers or individual sellers. Paying in cash also expedites the ownership transfer process, allowing for quicker receipt of legal documentation. However, this method requires significant upfront liquidity, which may not be suitable for all buyers.

Mortgages are available from Egyptian banks for both citizens and, in some cases, foreign residents who meet specific eligibility criteria, such as holding a residency visa and providing proof of income. Down payment requirements for conventional mortgages typically range from 20% to 30% or more, while subsidized government programs may offer lower minimums of 10% to 15%. Interest rates vary, with some government initiatives providing subsidized rates as low as 3% for qualifying individuals. Banks will also assess the borrower’s income, with monthly installments generally not exceeding 35% to 40% of net monthly income.

For new developments, developers frequently offer installment payment plans, providing flexibility for buyers. These plans often feature lower initial down payments, sometimes as little as 5% to 30%, with extended payment terms ranging from 2 to 7 years. Many developer payment plans are advertised as interest-free, though the total cost of the property might be slightly higher compared to an outright cash purchase. This option allows buyers to spread out the financial commitment, making homeownership more accessible.

Recurring Costs of Homeownership

Ongoing expenses are part of homeownership in Egypt. Utility bills for electricity, water, and gas are a regular cost, with an average monthly expense for an 85 square meter apartment in Cairo estimated at approximately EGP 1,614. These costs can fluctuate based on consumption and seasonal usage, particularly for cooling. Water heating methods, whether electric or gas, also influence the monthly bill.

For properties located within compounds or managed developments, maintenance fees or service charges are typically paid regularly. These fees cover the upkeep of common areas, security services, and shared amenities like swimming pools and landscaping. Depending on the property’s size and the level of amenities, these charges can range from EGP 500 to EGP 5,000 per month for beachfront properties. In cities like Alexandria, general maintenance can represent 5% to 9% of the annual rental income, with additional costs for humidity-related issues and urban services like garbage collection.

Residential property taxes are an annual obligation in Egypt, calculated at 10% of the estimated annual rental value of the property. Certain exemptions apply: properties used as a primary residence are exempt, as are those with an annual rental value not exceeding EGP 24,000. Property owners should also budget for general upkeep and repairs, as all properties require ongoing maintenance to preserve their condition and value over time.