About Egypt:
Egypt is located at the heart of the continents of the old world, namely: Africa, Asia, and Europe. It overlooks two seas: the Red Sea and the Mediterranean Sea, as well as two gulfs, namely: the Gulf of Suez and the Gulf of Aqaba. In addition, the Suez Canal, which is one of important international waterways, cuts through its land. Egypt is also a transcontinental country, as it is located in the northeast of the continent of Africa, and at the same time its borders extend to Asia, as represented by the Sinai Peninsula. The lifegiving River Nile also flows through its land, providing the people of Egypt with their lifeblood. Such a distinguished geographical location has made Egypt function as an isthmus through which the three monotheistic religions passed. As such, Egypt has always been the cradle of civilization, along with the civilizational interaction between the East and the West, and the North and the South. Thanks to its statues in the Islamic world, Egypt has also remained throughout the centuries a beacon of Islamic thought and civilization, embodying the values of moderation, tolerance and coexistence that represent the essence of Islamic teachings. Egypt additionally plays a major cultural, intellectual and political role in the Arab region, and takes upon its shoulders a great share in the quest for stability, peace, progress and renaissance in the Arab world and the Middle East.
Climate:
The climate of Egypt is affected by several factors, the most important of which are the location, the terrain, standard conditions of air pressure, low-pressure areas, and water bodies. Such factors have contributed in dividing Egypt into several distinct climatic regions. As such, Egypt is located in the arid tropical climate, with the exception of its northern parts, which are located in the warm temperate climate. These parts enjoy a climate similar to that of the Mediterranean region, which is characterized by heat and aridity during the summer, and temperance, accompanied by minor coastal rainfall during the winter. The climate of Egypt can thus be divided into two climatic seasons: the hot dry summer that extends between the months of May and October, and the mild winter with minor rainfall that extends between the months of November and April. The average annual temperature in Lower Egypt is 20 ° C during the day and 7 ° C at night. As for Upper Egypt, the average maximum temperature is 25 ° C and the minimum temperature is 17 ° C.
Geographic Coordination of Egypt:
The Arab Republic of Egypt is spherically located between latitudes 22 and 32 degrees north of the equator, and between longitudes 24 and 37 degrees east of Greenwich.
Geographical Borders:
Egypt is located in the northeast corner of the continent of Africa, parts of it extends into Asia. The Arab Republic of Egypt is bordered on the north by the Mediterranean Sea with a coastline of 995 km long, and by the Red Sea to the east with a coast of 1941 km. It is bordered in the northeast by Palestine and Israel with a length of 265 km, and by Libya on the west along a line of 1115 km, and by Sudan to the south with a border extending to 1,280 km long.
The Size of Egypt:
The size of the Arab Republic of Egypt is about 1,002,000 square kilometers, and the inhabited area is 78,990 km, or 7.8% of the total area.
The Topographical Features of Egypt:
The topography of the Arab Republic of Egypt is divided into four main regions:
The size of the Eastern Desert is about 225,000 km, which represents 28% of the size of Egypt. It includes the Sinai Peninsula. It extends between the Nile Valley in the west, the Red Sea, the Gulf of Suez and the Suez Canal in the east, and from Lake Manzala, overlooking the Mediterranean in the north, to the borders of Egypt with Sudan in the south. The Eastern Desert is characterized by the presence of mountain heights that overlook the Red Sea and reach a height of about 3000 feet above sea level. This desert is considered as a stock for Egypt of natural resources of various mineral ores such as gold, coal, as well as oil.
The size of the Sinai Peninsula is about 61,000 km, which represents about 6% of the size of Egypt. It is shaped as a triangular plateau. The base of the triangle is on the Mediterranean in the north and its head is centered in the south in the area of Ras Muhammad and the Gulf of Aqaba from the east, and the Gulf of Suez and the Suez Canal from the west. In terms of terrain, Sinai is divided into three sections. The southern section, which is a rugged and rocky area consisting of high-altitude granite mountains, including Mount Catherine. It reaches a height of about 2,637 meters above sea level and is the highest mountain peak in Egypt. The central section is located in central plateau region, which is also referred to as the Labyrinth Plateau. This plateau has a number of valleys that slope gradually towards the Mediterranean Sea. The northern section includes the area confined between the Mediterranean Sea to the north and the Labyrinth Plateau in the south. It is a flat land and a hilly region which have abundant water sources, due to the descending rain water from the southern highlands and the central plateaus.
The most important landmarks of Egypt:
The Nile:
The Nile is the second longest river in the world. It runs through the land of Egypt from the south to the north, splitting it into two parts. It is then separated into two branches that flow into the Mediterranean, namely the Rosetta and Damietta branches. The length of the Nile from its source in Lake Tanganyika to its mouth in the Mediterranean is 6,690 kilometers and covers an area of 1.9 million square kilometers. It goes through eleven countries: Tanzania - Kenya - Democratic Congo - Burundi - Rwanda - Ethiopia - Eritrea - Uganda - Sudan - Egypt - South Sudan. The Nile is regarded as the bringer of life and growth to the land of Egypt. This is evident in the writing of the Greek historian Herodotus, who states: "Egypt is the gift of the Nile.” He based such an observation on what he has sensed about the importance of the Nile in the lives of Egyptians. Measuring the water level in the Nile began from the era of the ancient Egyptians, when they tried to use what is known as the "Nilometer." This measurement tool takes one of three methods: a board, a column or a ladder, each of which carries a graduation. The unit of measurement, known as the cubit, was the same for the three methods. The Cubit measuring tools and the Nilometers became a tourist attraction.
The High Dam:
The project of the High Dam is absolutely one of the most important projects to regulate the water of the Nile water. The project was inaugurated on January 9, 1960, and in January of every year, the people of Egypt celebrate the anniversary of the construction of the High Dam, as the High Dam is considered the greatest and largest engineering project in the twentieth century in terms of architectural and engineering projects, outperforming other giant global projects. The High Dam was built to protect Egypt from the dangers of high floods that flood large areas of land, as well as to preserve the water of such floods, which was lost in the Mediterranean without benefiting from it.
The Suez Canal:
According to historical facts, Egypt is the first country on earth to dig an artificial canal through its lands during the reign of King Senusret III. The purpose was to connect the Red Sea with the Nile. This canal inaugurated in 1874 BC. During the reign of Khedive Ismail on November 17, 1869, the idea was developed with the inauguration of the Suez Canal that connects the Mediterranean Sea "at the city of Port Said" with the Red Sea "at the city of Suez." The Suez Canal enjoys a distinguished geographical location, which made it the shortest link between the East and the West. The administration of the Suez Canal was nationalized by the Egypt on July 26, 1956. Such an event was followed with the closing of the canal for 5 times, the last of which was due to the hostilities of the tripartite aggression against Egypt in June 1967. “The Canal remained closed for a period of 8 years,” until it was reopened navigation on June 5, 1975. On August 6, 2015, the new parallel canal was opened to maximize the use of the canal and its current branches, to reach the highest number of ships being served, by duplicating the number of ships crossing in both directions, without stopping in waiting areas inside the canal, and to reduce the period of time required to cross a ship. Such a development has also increased its capacity for the passage of ships in light of the expected growth in the volume of global trade in the future. The development of the Suez Canal goes hand in hand with the development project in the Suez Canal region, which would raise the degree of confidence in the canal as the best international navigation channel. This also reduces the chances of being replaced by other alternative naval routes, due to the highly competitive nature of such projects. The Suez Canal and its development project also increase the chances of achieving success in the development project in the Suez Canal region. All of this would be thus reflected in the increase of Egypt’s national income from the foreign currencies, since the income of the Suez Canal is transferred directly to Egypt’s treasury. It also creates the largest number of job opportunities for the Egyptian youth, expanding new urban societies, in the process.
Water Resources:
The Arab Republic of Egypt relies for its water sources on three basic sources of fresh water. These include: Flood water, which is represented by the Nile, rain water and flash floods, and finally groundwater.
Mineral and Oil Resources:
The Arab Republic of Egypt is rich with minerals such as phosphates, iron ore, in addition to gold and oil.
The Egyptian economy is the second largest in the Arab World, after the Kingdom of Saudi Arabia, with a gross domestic product of 500.9 billion dollars, according to the official estimates for the year (2010). It is also the second largest in Africa, after South Africa. It holds the eleventh rank in terms of per capita income in the Middle East. The Egyptian economy is characterized by being one of the most diversified economies in the Middle East, as it depends mainly on agriculture, revenues from the Suez Canal, tourism, taxes, cultural and media production, petroleum exports, and remittances brought in from the Egyptians working abroad (more than three million Egyptians work abroad, most of whom are concentrated in the Arab Gulf states). Their cash transfers constitute one of the resources of the economy. A number of Egyptians also work in the United States of America, Europe and Australia. In the aftermath of the Egyptian revolution of January 2011, the state is exerting unremitting efforts to put the Egyptian economy back on its correct path and overcome the huge obstacles it has been through. Such is achieved by exerting efforts internally, and adopting an open approach to the world externally, in an effort to make the economy more dynamic, and to increase its financial performance.
According to Egypt's 2030 vision on the economic level, Egypt has carried out comprehensive economic reforms. This plan aims to help stabilize the Egyptian economy, while ensuring that it becomes stronger and more developed over time. This plan resulted in the following successes:
This has been met with increasing confidence from local and international investors. Moreover, Egypt is currently pursuing a plan to develop its infrastructure. This includes more roads, bridges and highways to improve transportation, as well as to connect distant cities with the capital.
The Arab Republic of Egypt is located in the northeastern part of the continent of Africa. A part of Egypt is extended in Asia, as represented by the Sinai Peninsula in the southwest. Therefore, it is an important country, due to its strategic location, as it connects the continents of Asia and Africa together. The size of Egypt is one million square kilometers. It overlooks distinctive water borders, including: the Mediterranean Sea on the northern border, and the Red Sea on the eastern border, in addition to the Nile, which is the lifeline in Egypt and extends from the south to the north of the country. All of this has made Egypt an attractive destination for many people from all over the world. Therefore, tourism is one of the most important sources of income in Egypt, and the number of tourists has started to increase recently. It has reached nearly 10 million tourists in 2018 after having reached its lowest levels in 2016, which had been 5.4 million tourists. A plan targeting the increase of the number of tourists to 12 million tourists in 2019/2020 is devised.
The population of Egypt is nearly 100 million people, according to the reports of the Central Agency for Mobilization and Statistics in Egypt. Egypt possesses a tremendous human resource that is beneficial to Egypt. However, what matters in this context is the constant need to provide housing for new families as, the rates of marriage are on the rise and have reached approximately one million marriages annually. This subsequently requires the provision of one million housing units.
In addition, according to the demographic distribution by age, and on the assumption that the age of marriage in Egypt is below the age of thirty, according to the population census, the total population of those under 30 years is 65 million, with an approximate ratio of 51% males and 49% females.
Therefore, investment in real estate is considered the best in Egypt and the Middle East, due to its annual increase in prices, regarding all the categories of housing (social housing, average housing, above average housing, luxuriant housing, etc.) due to the continuous demand for the property, which is the result of the huge population density.
Real estate investment simply means investing money in a property, the price of which is lower than the market, then selling it at the market price or higher. However, when one delves into the matter, one realizes that it sharply requires a lot of research, patience, and commitment. If one manages to do it correctly, one will find it to be very profitable.
Real estate investment can provide insurance against economic and financial fluctuations, as it provides a stable monthly income. With the multiplicity of options that the real estate market offers at the present time, it will be difficult to make the right decision in choosing the property that brings the highest return, since as an investor, the first and last goal of the idea of real estate investment is profit, of course. Thus, a careful study of the whole matter must be conducted, and this is what HSquare provides.
According to Law No. 230 of the year 1996, regarding the regulation of ownership of constructed real estate and vacant lands to non-Egyptians, they are entitled to own built real estate or vacant land. In addition, the Prime Minister has approved of a number of decisions recently taken by the Egyptian government, through which the government established a connection between granting residency and real estate ownership in Egypt to foreigners.
Real estate investment in Egypt is currently the best investment opportunity in the Middle East, especially after the Egyptian pound exchange rate is fully floated against foreign currencies. The solution was to put money in a real estate whose purchasing value was constantly increasing. This makes investing in real estate one of the profitable fields that everyone wants to participate in, especially Arab and foreign investors. This is due to the following reasons:
Real estate investment in Egypt 2019 has witnessed huge leaps and a great recovery, especially with this huge number of major projects that are being establish, due to the demand for real estate inside Egypt greatly exceeds the available.
This reinforces the idea of stability and safety for the sector of real estate investment, since the basic guarantee in this is the continuous increase in demand for the offered commodity.
As for the types of real estate investment in Egypt 2019, they are found to be as follows:
It is also called "speculating investment" and it is a type of investment whose aim is to profit from the property upon acquisition, or immediately after making changes to it. The profit that is made from this type of real estate investment is a short-term profit.
To achieve a successful investment opportunity of this kind, the investor must search for the right property and buy it at the lowest possible price. This type of investment is found to be mainly based on reselling real estate. Thus, it requires the availability of liquidity, as there are almost no payment plans in it, and if available, the payment plan is likely to be a very short period of no more than 6 months. It also requires finding easy and cheap solutions to repair the property and increase its value. The last requirement is to properly promote the property. Thus, this type of investment will require a lot of creativity and effort, but if it is done properly; It guarantees massive profits in a short period of time.
It is called long-term, because the investor in this case buys an apartment, commercial unit, or even a plot of land, and puts it up for sale after several years. In this case, the investor can achieve the highest targeted investment rates, especially if during those years, he was able to lease the unit, in addition to winning the sale deal.
This type of successful real estate investment can be found to be limited on two options:
Certainly, commercial real estate is one of the most important types of successful real estate investment, represented in vacant commercial, industrial, administrative or medical units. In general, investing in a commercial unit is found to always result in a high return on investment, ranging from 10% to 25% annually, especially when the units are rented for companies and institutions rather than individuals.
This type of real estate investment is the most popular, especially as it is safe, simple and has direct returns. This type is divided into two sub-types of investment:
Residential real estate with an annual lease contract: this type is usually in densely populated residential cities, especially in the new cities in Greater Cairo (New Cairo, 6 October, Sheikh Zayed City). The lease term ranges from 3-5 years, with an annual increase of 5-10 %. The investor in this type earns money monthly from the rented unit. This type of real estate investment guarantees to the client more than one advantage, the first being a regular monthly income every month, and the second is earning profits over the long term due to the increase in the property's value from 20-30% annually.
Residential property with a daily lease contract: this type applies to seasonal housing units and is located in coastal areas, such as the North Coast on the Mediterranean Sea and Ain Sokhna overlooking the Red Sea. The residential units are rented during certain seasons, which span up to 5 months of the year. They are rented on a daily basis, and the return on investment ranges between 20-25% annually in addition to the usual increase in the price of the property. This type provides the best return on investment due to the strong demand for units that rented on a daily basis during the summer period.
Prices and payment plans differ from one district to another, due to the rate of development in the district and the occupancy rate. However, real estate in Egypt is distinguished by its highly reasonable prices and long-term payment plans, where it is very easy to find a property with prices starting from 400 thousand riyals with four-year payment plans up to 8 years in some projects. Additionally, there is a very notable cash discount in the case of cash payment, which may reach 30% in some projects.
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