Monday, August 24, 2009

Egyptian Land Laws

The Government have three types of land.

1) Agriculture land
2) Special low cost land ( usually new in the desert) for low cost housing development.
3) Standard land for sale for housing or business.

1) Agriculture land

This land is not for building of any sort. In the land registry it is logged as being used for agriculture free from building and it is the countries natural resource for crops.
Any land built on it, is illegal and even though it may have been given permission to purchase for dwellings by backsheesh etc. It is still registered as agriculture land and any dwelling can be pulled down at any time at the whim of the government.

2) Special Low Cost Land

This land is often sections of desert with basic infrastructure like roads, lighting and water, electricity etc pinpointed to the lower classes of poor Egyptians unable to afford market priced housing.
This land is heavily subsidized and can only be bought by Egyptians, single with no other property, with jobs, on a mortgage scheme.

It cannot be bought by cash.

This land cannot be sold on for 5/10 years. This deters developers of buying up tracts of land to invest in and not build on and resell years later.
If the land does not come with housing the purchaser MUST start building work within 6 months on the dwelling or it is taken back.

Huge companies like Orascom and the Building and Development Bank are working alongside the Government to build affordable housing for poorer Egyptian families. The bank offering low rate mortgages for purchase.
Only someone working with a salary who is Egyptian can purchase these lands and houses.
These companies who work alongside the Government will buy the land and have it registered in the courts as theirs. Private buyers who buy a plot are unable to register the purchase in the courts because technically the owner is still the Government until the 'handover' of the project.

3) Standard land for building or business
This land is available at market price and is available to both Egyptian and Foreign investors.
Recent law stipulates that a certain percentage MUST be allocated to green area. ? a 1/6th. This is sold in plots and each plot must have a surrounding 'green area' used as a buffer to the next building or plot. It does not necessarily have to be planted but this is encouraged.

This land is purchased either privately from the Government where the owner will be registered in the courts, or by private investors who wish to build compounds or malls etc, with the purchaser having a legal contract of sale from the court. If you live on a compound which has not been 'handed over' it still belongs to the Government technically. I will explain this further in sales thread.

1 comment:

  1. Hi,
    This website Exchange Rate USD has latest

    multi-language currency exchange widget and currency converter widget
    which you can select your display timezone and color for your
    blog and website ! Enjoy it!