Construction Land in Hurghada?

[Peter Mitry]

I have a fair idea of construction costs in Egypt but I am sure that many people would be interested to know the procedures for finding building land and establishing a value? Also, some of our Developers on the forum I am sure could give us an insight into how to approach getting planning permission and checking that the land purchased is unencumbered and free from debt? This could develop into an interesting thread. For instance how much should front line beach land cost with planning permission and how much in the town? What stories can you tell about the process of getting permission? Is it straightforward or do you 'grease palms'? I think this could be a fascinating subject!!

 

[awahee123]

I would certainly be very interested Peter, lets hope we get some insight into this subject as I believe cost of building a villa or a couple of apartments is very little.
I wont put any prices on here yet but this could be an eye opener if you get the right info on this thread.

 

[propertastic]

The below figures should be taken with a large pinch of salt as they are more theories than anything coming from proper research, but there definitely seems to be a three-tier pricing system in operation in Egypt.

Egyptian Prices: Perhaps 50% of the prices being offered to Brits. Probably very badly finished and you would need to pay cash.

Russian Prices: Perhaps 10-20% lower than to Brits. They need good finishing, but they don't need credit. They like to buy finished property and they pay for it with cash.

British Prices: These are the ones that you'll see quoted everywhere online. But for this price you get your hand held, should get finishing to European standards and credit.

 

[awahee123]

To be honest unless you have an Egyptian contractor onboard I doubt anybody except the Egyptian people would benefit.
When I was last in Hurghada I had a Chemist offering me an apartment (new build)
£8000 less than what it was advertised at as Locals can buy any property for the correct value,I'm sure at this he was making a handsome profit.

 

[GM43]

Take care to buy land in Hurghada (and Egypt?). The government can take the land (original bought from the government) away if there is still nothing build (within 3? years of purchasing) on the land AND give you a fine for not building. Everyone who didn't build on his land, wants to sell it now, so the prices are way down.

 

[Peter Mitry]

This is interesting GM 43; there must be would be constructors who don't have the funds who would be happy to sell. What about prices? As an Egyptian what would I expect to pay for a) beachfront with planning consent b) town centre, say El Kawser, with planning consent?

 

[GM43]

Problem is: you have to start building real fast! I think you have also to stick to the original planning, otherwise it takes too long to get a new consent.
But if the governor? (or who ever controls the land) comes by when you have already paid (an amount) and you are not yet building, then you loose your money. I wouldn't take that risk!
I have no idea about prices, my husband told me this. I am glad we sold our land a half year ago!

 

[awahee123]

What time limit do you have to start building?,also do you have to finish the build within a certain time limit?.Looks risky unless you start building straight away.

 

[propertastic]

Yes, one of the developers told me something about this time limit.

I can't remember the exact figures, but I was told that the law was that you need to have 40% of the development fully constructed within either 18 months or two years or else your planning permission is taken away.

Something like that in any case.

 

[awahee123]

I think this is dodgy ground,I know when I was in Hurghada the Mayor was in my developers office.hmmm

 

[GM43]

The 3 year limit was always there, only now the government has started to check! Before nobody controlled, so the buyers "forgot" about it. And now they are in big trouble, loosing their money they have invested and they even have to pay a fine!

 

[awahee123]

3 year limit

The 3 year limit was always there, only now the government has started to check! Before nobody controlled, so the buyers "forgot" about it. And now they are in big trouble, loosing their money they have invested and they even have to pay a fine!

So it is a three year limit is it?is it also true you have to build on 40% of the land before the 3 years are up?.

 

[Peter Mitry]

How do you go about identifying who owns each piece of land? In Europe its easy - you just go to the land registry....

 

[yield]

I would like to ask does anyone know what prices beachfront land start from in new areas of Hurghada like Al Ahia for example.

What is the cheapest beachfront or seaview land per sq mtr you have seen on the Red Sea???

 

[dave99]

Development partners wanted

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If anyone finds a good plot and wants a partner or two to get a development going let me know.

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[flip]

I may be mistaken but was it Peter saying that he was going to get a crowd of people together to build a development???

If so how it going Peter are you still intending to do this?

Dave you must know more about finding land and the current going rates of land, please share with us.

 

[dave99]

No such thing as "going rate"

I may be mistaken but was it Peter saying that he was going to get a crowd of people together to build a development???

If so how it going Peter are you still intending to do this?

Dave you must know more about finding land and the current going rates of land, please share with us.

The whole "market" in places like Hurghada is what one might call "fluid".

Most smallish deals (plots upto say 3000 sqm) are done with cash in hand thru local agents (who get paid by both the buyer and seller by the way),with doubtful ownership documents, most of the time with people who have no intention of ever building, which is why there is the current "interesting" state of play with land being potentially lost.

The bigger land deal are usually well hidden and usually are only made available to a select few who are "in the club", who get some great deals.

I'm on the list for the "club" not there yet.

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[Peter Mitry]

As Dave99 says the whole processs of buying land as a non Egyptian is incredibly difficult and for my purposes it may be better to work with an established Developer who I can trust not to rip me off and to give me fully costed proposals for an agreed standard of project with a transparent bottom line and full Due Diligence which will make it easier to sell quickly. I believe that I have found that source but at this stage cannot divulge the details.

 

[dave99]

As a GUIDE only

I may be mistaken but was it Peter saying that he was going to get a crowd of people together to build a development???

If so how it going Peter are you still intending to do this?

Dave you must know more about finding land and the current going rates of land, please share with us.

The plot next to mine in Arabia Beach - 600 sqm was offered to me for

2,000,000 Egyptian pounds
- which after paying fees etc works out at about £190,000 - needless to say I thought was a bit expensive.

It did prove how much prices have moved since last year - frightening really.


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[flip]

The plot next to mine in Arabia Beach - 600 sqm was offered to me for

2,000,000 Egyptian pounds
- which after paying fees etc works out at about £190,000 - needless to say I thought was a bit expensive.

It did prove how much prices have moved since last year - frightening really.


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Thanks Dave thats not cheap at all, how about Marsa Alam? do you think prices will be cheaper there?

Is the price for land with seaviews cheaper anywhere on the Red Sea?