Buying Golf Property in Egypt

Country:  Egypt

Until recently, Egypt’s property market had been somewhat neglected by the press: use any search engine to find Egypty property, for example – a country famous for its sphinxes, the Sahara and Omar Sharif – and very few articles are to be found.

This will soon change, however, as Egypt looks poised for a property boom. It is amazing it has not already happened, really, as all the boxes for a property hotspot have long been ticked: it has an excellent climate, proximity to Europe, affordable property and an established tourist market.

So far, the most interesting developments on the market or in the pipeline are some seriously upmarket golf resorts. Norman Foster – of 30 St Mary Axe fame, in the City in London, otherwise know as the Gherkin – is one of the big names involved in developments in Egypt . He is helping design the Serrenia resort, modestly dubbed by the developers ‘the world’s most exclusive waterside address’.

Found a ten-minute drive from Hurghada, a beach town on the Red Sea Riviera that is seeing a lot of development, Serrenia is spread over 260 hectares with 736 residential units, including flats, villas and palaces – plus an 18-hole golf course, marina, seven-star hotel, spa, shops and other sporting facilities. The development is soon to launch its second phase.

Another high-profile launch, to the north of Serrenia which, when built, will dwarf all that it surrounds, is the latest offering by DAMAC, one of Dubai’s largest developers. It will, the developer promises, be the largest resort in the region, complete with a quality golf course. The project, called Gamsha Bay, will cover a staggering 30 million square metres, which will incorporate over 55,000 residential and retail units. As well as a golf course, it will offer an extreme sports adventure theme park, spa, marina, cinemas, shopping boulevards, scuba diving and private beach with 39 kilometres of coastline and 25 kilometres of beaches. The development will be built in five phases over the next decade, with the first phase due to be completed within five years.

Cluttons is also about to launch the Port Ghalib development, next to Marsa Alam international airport, in the south of Egypt, in November this year. The development currently comprises three five-star hotels, operated by the South African operator Sun International, and 420 marina apartments and villas. It will also include a golf course, tennis courts, spa, diving school, safari and fishing charters. Prices start at approximately £45,000 for a studio and rise to approx £300,000 for a three-bedroom flat with marina views. The villas will sell for approx £420,000 and the developer is offering a rental pool system if owners wish to make their property work for them financially.
Another monster development in the making is Sahl Hasheesh, south of Hurghada owned by the Egyptian Resort Company (ERC) with a marina and at least three 18-hole golf courses. “The ERC is selling off plots to developers who are building their own resorts” says Alex Upson, of Cluttons. “Prices start at around £60,000 and go up to £500,000, though most properties will be from £60,000 up to £200,000. It is aiming at a wealthier market than the usual people who buy Egyptian property.”

One of the most established integrated resorts in the region, El Gouna, has a high-quality mature golf course, a stunning marina, and an impressive number of sport and leisure facilities. Prices for villas currently on the market at El Gouna start from around £170,000, rising to £600,000.

The Raven Group, headed by Anton Bilton, who used to go out with Tara Palmer-Tomkinson and is now married to model Lisa B, is about to launch a development within the El Gouna resort, called the Ancient Sands Golf Resort, dotted with lagoons, flats and townhouses and a ten-kilometre beach. At the time of writing, prices are yet to be released.

So, as is now abundantly clear, golf is big business in Egypt and there are plenty of developments offering a huge amount of choice for any golfer planning on swinging his or her golf club on a regular basis in the country. Another good sign for buyers of both golf and non-golf developments is that capital growth is very healthy, averaging around 20 per cent per year in the last few years, with no signs of that dipping in the near future.

“Golf developments are filling the gap for quality developments in Egypt” adds Cluttons’ Upson. “Long-term there is no doubt in my mind that the best investment is to buy within a golf or a marina development; one that has been masterplanned properly. Smaller developments are built on less of a budget with perhaps a lower build quality. One significant reason to buy within a development rather than a stand-alone building is that only ten per cent of properties in Egypt are registered with land registry as it’s fraught with difficulties. If you buy within a big development you get guaranteed title, and you do not have to deal with the red tape surrounding this.”

He adds firmly: “At Cluttons we are looking at Egypt as one of the most important up-and-coming destinations in the world. There is an awful lot going for it: it has the weather, it is accessible – just five hours from the UK – you have got the Red Sea and all the history of Egypt.”

Lance Nelson, of Jet2Let, selling homes in Egypt, agrees. “The prices are lower compared with Dubai, and you do not have to fly as far. Marrakech is good – but it does not have an ocean. Egypt has a growing economy and a favourable tax regime. I like the way the government is doing things – it is cheap to buy property and cheap to run it too. There is not capital gains tax in Egypt and property registration fees are very low.

“Also, Russians are buying Egypt property, along with Italians, Germans and the British, and that is a very good sign. Russians, in my experience, are very shrewd at judging property: they like good build quality and developments that are well-located. If you want to play golf, dive, see lots of culture and not have to fly too far, then Egypt is the place for you – and on top of all that, it is cheap to buy.”

Jeanette Putt, from Oxford, got in early and bought her studio flat in El Gouna through Egyptian Experience, a company selling property in Egypt to Brits, in 2005 for £23,000. The flat, found 25 minutes from Hurghada airport, is now built and she holidays there frequently.

“I decided to buy in Egypt as I felt it would be a good market to invest in. When I bought, two years ago, it was not particularly well known and I decided there was good opportunity for capital growth,” she says. “One reason to buy in Egypt is year-round sun, plus property built within designated tourism property zones can only have 20 per cent property on its land, so I knew it would remain protected.

“I also knew that buying within a golf development, the houses and land would be looked after. I haven’t yet rented it out but I believe if I did I could get around £200 a week for it. So far, it has been friends and family who have stayed with me and they all love it. I think Egypt generally is really taking off now – you can see house prices growing substantially. I usually get a BA or an Excel flight, which costs on average £200 so it doesn’t break the bank getting there either.”

As many of the courses are under construction, golf fees are not yet public knowledge and are hard to predict. One Savills development to be launched is Soma Bay, south of Sahl Hasheesh, where family membership costs €1,200 (£813) a year and a single membership is €750 (£508). The development will offer 20 per cent off green fees, which will be €60 (£41) for the 18-hole course. David Vaughan, dealing with the sales when they lunch shortly, believes a 20 per cent green fee is fairly typical. “You won’t find complimentary membership or hugely reduced fees” he says, “that is very rare as, if developers offered it, they would soon be broke.”

Reduced fees might not be a problem for people buying here anyway, as, at the moment, only the wealthy can afford to buy in these high-end resorts as there are no mortgages available. “There is no mortgage finance in banks at the moment so developers are having to come to the rescue” explains Alex Upson. “Some are offering their own financing deals – Emaar, a Dubai-based developer is branching into Egypt and bringing with it its own mortgage company, Amlak, to provide loans to its clients. Though I am sure the banks will follow - I imagine they will be pricking up their ears to the opportunity of lending against an expanding property market and following suit soon.”

First published in October 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.

See all properties in Egypt

Some properties in Egypt

	El Ahyaa, Hurghada, Egypt
	Price: €6,105 Type: Studio Bedrooms: 1
	Following on from the phenomenally successful Tiba Towers 2 (one of Hurghada's fastest-selling development in 2010) and its sister development, Tiba Heights, comes the developer's latest and most luxurious project to date - Tiba Palace.220
	View details | Enquire further

	Ref 4520399, Red Sea, Hurghada, Egypt
	Price: £6,260 Type: Apartment Bedrooms: 1
	Tiba Paradise is the 6th of the Tiba Sisters developments.
	View details | Enquire further

	Ref 4435498, Red Sea, Hurghada, Egypt
	Price: £6,570 Type: Studio Bedrooms: 1
	Just Released Fantastic Value studios, 1-bed and 2-bed apartments in Hurghada. Unbeatable prices!
	View details | Enquire further

	El Ahyaa, Hurghada, Egypt
	Price: €6,913 Type: Apartment
	Tiba Paradise is the sixth development in the incredibly successful Tiba series of projects in the fast-growing Al-Ahyaa area of Hurghada and is eagerly awaited by thosewho missed out on getting their perfect apartment when the developers last
	View details | Enquire further

	El Ahyaa, Hurghada, Egypt
	Price: £7,317 Type: Apartment Bedrooms: 1
	We thought when we launched Tiba Towers 2 and Tiba Heights a short while ago that we had found the best value for money developments in Hurghada. But we were wrong. Isida beats them both.
	View details | Enquire further

	Ref 5256195, Red Sea, Hurghada, Egypt
	Price: £8,334 Type: Apartment
	Tiba Star is an exclusive development from the successful Tiba Resorts family located in the heart of Al-Ahyaa, Hurghada. Tiba Star joins Tiba Tower 1 & 2, Tiba Heights, Tiba Palace and Tiba Garden as the sixth successful development in the area.
	View details | Enquire further

	Ref 4520400, Red Sea, Hurghada, Egypt
	Price: £9,130 Type: Apartment Bedrooms: 1
	Tiba Paradise is the 6th of the Tiba Sisters developments.
	View details | Enquire further

	Ref 4369111, Red Sea, Hurghada, Egypt
	Price: £10,142 Type: Apartment Bedrooms: 1
	Tiba Garden is coming to be a fourth sister in 'TIBA'S' family of resorts development to continue the incredibly successful family which is located just a front of TIBA TOWER2 project.
	View details | Enquire further

	El Ahyaa, Hurghada, Egypt
	Price: $10,356 Type: Studio
	Anyone who has looked through Hurghada's options for affordable, best value developments is sure to quickly come across the Tiba developments in El-Ahyaa - Tiba Towers 2, Tiba Heights, Tiba Palace and Tiba Garden.
	View details | Enquire further

	Ref 4181872, Red Sea, Hurghada, Egypt
	Price: £11,634 Type: Apartment Bedrooms: 1
	Tiba Garden is coming to be a fourth sister in 'TIBA'S' family of resorts development to continue the incredibly successful family which is located just a front of TIBA TOWER2 project.
	View details | Enquire further

See all properties in Egypt