• Пт. Фев 3rd, 2023

Sharm el-Sheikh: real estate, prices, terms of purchase


Фев 15, 2022

The world-famous resort on the Sinai Peninsula, beloved by Russians, residents of Ukraine and the EU, in the field of tourism and real estate competes with Hurghada, located on the opposite, African coast of the Red Sea. Although back in the 70s of the last century, Sharm el-Sheikh was a Bedouin fishing village, the spirit of those times today is preserved only in its southern part, in the area of the market of the Old City. Otherwise, it is a modern resort, rapidly developing within the boundaries of a coastal strip four kilometers wide and forty kilometers long, one of the favorite places for lovers of snorkeling, diving, underwater excursions and other marine activities, which are offered in abundance in Sharm el-Sheikh.

There are a lot of interesting things for those who like to travel: the Nabq Nature Reserve in the north of the city and the Ras Mohammed National Natural Park in the south; the Orthodox monastery of St. Catherine with almost one and a half thousand years of history; the holy biblical Mount Sinai, better known as Mount Moses; the neighboring city of Dahab with its famous “Blue Hole”, called “Everest for divers”; extreme rally on jeeps in the desert. Longer routes lead to the pyramids in Giza, Bethlehem, Petra or to the capital of the country Cairo – these tourist details are important for those who are going to buy property in Sharm el-Sheikh .

City for dear guests

Sharm el-Sheikh differs from other Egyptian cities on the basis of elitism – this is how this resort was planned at the idea stage, and it remains so to this day. Sharm el-Sheikh is an enclave, a narrow strip of land along the Red Sea coast, a closed, in a sense, world that attracts wealthy people. By the way, in a pandemic, many fans of the resorts of Southeast Asia have reoriented to Egypt, where there are fewer restrictions on the entry of foreigners. In addition, the flight time from Moscow and other European capitals to the resorts of Egypt is about two times less than, for example, to Thailand, and, accordingly, tickets are cheaper, which is important. Perhaps, for real estate buyers in Sharm el-Sheikh, this is not such a significant circumstance, but the psychological factor of proximity to their native lands and relatively familiar civilizational norms certainly plays a role.

It should also be taken into account that peak temperatures in Sharm el-Sheikh are more moderate than in other cities of the country, thanks to which the city has gained the status of “the warmest and calmest resort in Egypt.” By the way, wealthy people from other continents, including North American, paid attention to this resort city.

Africa or Asia

Where is it better to buy property, in Hurghada or in Sharm el-Sheikh – the first of the questions that confronts those who decide to buy a property on the Red Sea, and the answer largely depends on personal preferences. Both resort cities are equally attractive for buying real estate, but someone fell in love with one of them, someone else, and often the family budget becomes the decisive factor.
In Hurghada, real estate prices are lower, since there is more land there and the city has room to develop, while Sharm el-Sheikh is sandwiched between a mountain range and the coast, here the builder does not have much to roam, and therefore the prices are higher. With a budget of up to $30,000, Hurghada will have to be considered, but those who can afford a more expensive purchase should pay attention to Sharm el-Sheikh. It is necessary to make a reservation that we are talking about today’s prices – the cost of housing is growing quite quickly, and this is due, among other things, to the resumption of direct flights from Russia to Egypt last year after a six-year break. Over the past three months alone, developers have raised property prices several times, and this growth will undoubtedly continue – today price lists start at $35,000 and reach the $200,000 limit, but this is not the limit.

Another point that you need to pay attention to is the difference in the conditions of purchase: in Hurghada you buy real estate in full ownership, in Sharm el-Sheikh – in a long-term lease for ninety-nine years. This subtlety is due to the peculiarities of the location and historical background – before, even here, land could be acquired in full ownership, but the Egyptian government, fearing the proximity of Israel, whose citizens could massively buy real estate, introduced restrictive measures. However, this does not threaten buyers in any way – the registration procedure is standard for the whole country, and real estate in Sharm el-Sheikh can also be inherited, sold, and descendants, if desired, can easily extend the leasehold period for the next 99 years, no one in this limit.

The house where I will live

The two best areas in Sharm el-Sheikh are Naama Bay and the Old City area, the very one where the spirit of the indigenous inhabitants of these places, the Bedouins of the fishing village, has been preserved. All city life flows here, the infrastructure is developed, but in the rest of the city you cannot live without your own car, and these are additional costs.

Real estate prices in these areas depend on its type and distance from the sea, the most inexpensive options can be looked at at a distance of a kilometer or more from the coast. The cost of a studio in a guarded complex where foreigners live starts from the above $35,000, the price of a one-bedroom apartment with a combined kitchen and living room, bathroom, terrace or balcony starts at $50,000, with two bedrooms – from $60,000. Similar apartments, but already on the first and second lines they will cost at least $90,000, while the maximum prices reach $200,000, and sometimes significantly exceed this threshold. The cost of a villa or a one-story chalet on the same first and second lines varies from $500,000 to $1,000,000.

Measure seven times…

The main danger that lies in wait for the buyer is the charm of the city and trust in local “friends” from among taxi drivers, sellers of jewelry and other stores. This also applies to those who have already fallen in love with Sharm el-Sheikh, have been here more than once and found those very “friends” who are ready to show all the “best”, they say, “I have a couple of chic apartments in mind here “.

It is just as dangerous, along with trusting local “friends”, to blindly trust the numerous offers in online catalogs, especially for those who have not been to Sharm. A strong recommendation is to contact trusted agencies, whose specialists know all the most attractive objects of the city, the laws of the country regarding the acquisition of real estate by foreign citizens and professionally accompany the transaction. This is especially important, since the standard contract and all other documents accompanying the transaction are drawn up in Arabic. Without the participation of professionals, it can easily happen that the documents for real estate are legally untenable, or the object itself turns out to be illiquid.

Thank you for your help in preparing the material:

Zinaida Mazur, director of Sun Residence

Sergey Mets

Source: https://www.homesoverseas.ru/eng/articles/11465