Over the past three months, Prime Minister Mustafa Madbouli has frequently addressed the topic of selling Egyptian real estate to foreigners. He has emphasised that foreign property ownership is a model applied in many countries to diversify income streams and attract foreign direct investment (FDI).
He has also clarified that foreign ownership does not include land but is strictly limited to “real estate units”. He stressed that this approach “is not negative” but is rather a state-backed economic measure.
Pointing to successful international experiences in this field, he urged the public not to worry about this phenomenon so long as transactions remain regulated and under state oversight.
Observers of Egypt’s property market note a fundamental shift in legislative philosophy from “restriction and control” of property to “incentives and conditional openness tied to financial inflows”, with executive decisions between 2023 and 2026 addressing gaps in older laws.
According to Mohamed Saad Radwan, a specialist in property contracts and registration, foreign ownership of real estate and vacant land in Egypt is governed by Law 230/1996.
This sets out three main conditions: foreigners may own no more than two properties nationwide, primarily for private residence, though commercial or licensed investment use is permitted; each property must not exceed 4,000 square metres; and ownership of heritage properties protected under the antiquities law is strictly prohibited.
Radwan added that other legislation also applies. The Integrated Development Law for Sinai of 2012 is the strictest geographically, banning foreign ownership across Sinai except in Dahab, Sharm El‑Sheikh, and the Gulf of Aqaba tourism zone.
The Investment Law of 2017 grants foreigners more flexibility when property is tied to licensed projects, including industrial, commercial, tourism, or services.
Amendments to the Nationality Law of 1975 link property ownership to investor residency and citizenship.
To ease restrictions and promote property sales, several government decrees between 2023 and 2026 have lifted key constraints. Most notably, the cap on the number of units foreigners may own has been abolished, provided that purchases are paid in foreign currency from abroad.
Decision 3562/2023 also resolved the long‑standing requirement of registration with the Real Estate Registry, allowing the notarisation of contracts for properties under state‑supervised authorities such as the New Urban Communities Authority, once payment in dollars is confirmed.
If a foreign national’s objective is a major commercial or investment project, Investment Law 72/2017 opens wider doors for him to own the spaces required for the project, provided they adhere to the approved activity.
The period from 2023 to 2026 witnessed several presidential and governmental decrees aimed at easing all these constraints. Most notable among these was Madbouli’s decision to scrap the restriction on the number of real estate units foreigners are entitled to own in Egypt.
Foreigners are now permitted to purchase any number of residential units, provided that their value is paid in foreign currency from abroad.
This decree facilitated notarisation by allowing real estate registry offices to accept contracts for properties that “fall under the supervision of state-owned jurisdictions”, such as the New Urban Communities Authority (NUCA). This is done by submitting a contract concluded between the (state-backed) real-estate developer and the foreign buyer, alongside proof of payment in US dollars.
From a marketing perspective, Osama Saadeddin, executive director of the Real Estate Development Chamber, said that the sector is in dire need of encouraging property sales to foreign nationals.
Egypt’s current share of such property sales, when compared to regional peers and countries with fewer resources than Egypt, does not match the sheer size of Egypt’s real estate and tourism sectors. If the obstacles restricting it are overcome, property exports could generate returns for the Egyptian economy higher than oil and gas, Saadeddin said.
A portion of the obstacles is tied to market regulation and will soon be resolved within the new institutional framework represented by the Egyptian Federation of Real Estate Developers.
This will significantly contribute to establishing guidelines for the market and its stakeholders, ensuring compliance with area size, specifications, and finishes. This will help build credibility for the sector and encourage foreigners to own property in Egypt.
This is particularly important given the high foreign demand in coastal areas, specifically the North Coast. This demand manifests itself as a desire to buy a summer home or a second holiday home, rather than to directly obtain residency or citizenship, as there are many frequent visitors to Egypt who simply want to acquire a vacation unit.
The vision that the chamber seeks to achieve aims to loosen up the sector from within by providing greater liquidity for real-estate projects through selling at least 30 per cent of each to foreigners.
Under the current laws, developers have been forced to extend payment periods to 10 or 15 years, which places a burden on the developer and creates an unfair investment environment for the real estate investor.
At the same time, the extended installment periods are the root cause behind the spike in property prices that customers are complaining about.
From a financing angle, Mohamed Samir, a mortgage finance expert, said that “the financial system in Egypt is open to providing mortgages to foreigners, and there are no objections from any financial institutions to offering these loans.”
He explained that there are already active mortgages for foreigners in the Egyptian market. While the Egyptian banks have not yet taken this step, some mortgage finance companies began implementing financing models for foreigners more than 10 years ago.
Each company established its own general financing policy, which typically requires that the financing ratio does not exceed 70 per cent of the unit’s value, the mortgage term does not exceed seven years, and the foreign buyer provides proof of income from abroad in US dollars, confirming they will transfer the installments on schedule.
“Just as mortgage financing acts as a major draw and catalyst for the real-estate market in any country, it is also a form of driving property exports to foreigners. If integrated into property export programmes within marketing campaigns and real-estate exhibitions targeting Egyptians and foreigners in the Gulf and Europe, it will play an essential role in boosting sales and stimulating US dollar inflows,” Samir said.
* A version of this article appears in print in the 2 July, 2026 edition of Al-Ahram Weekly
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