Egypt or Dubai
Have you been going back and forth on the decision of real estate investment in Egypt or Dubai? If you are a real estate investor ready to pump your money into the real estate industry with a future plan for a series of investments, but have not yet decided where to start, this article is for you.
Most of the time, one of the major obstacles that any real estate investor faces is choosing the market. The issue arises because many Arab countries have a great investment potential and might offer a high return on investment (ROI).
Making the decision where to start your real estate investment series is not easy, especially when the question is about Egypt or Dubai, two of the major real estate markets in the region.
That is why we will guide you today on how to best choose the market where you can start investing in real estate. Also, we will give you insights on where to plan your future investments.
Before telling you how to decide between Egypt and Dubai, you first need to consider the criteria for choosing the market which to invest in real estate.
Now that you know the criteria for choosing a market to start, let us start digging deeper into the question of Egypt or Dubai?
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In fact, either Egypt or Dubai both are listed among the top real estate investment markets. Both markets have a high investment potential and chances for a high return on investment.
However, applying the previously mentioned criteria to both markets does not give us a solid answer for the question of where to start your investment series. Why?
Simply because each of the two markets has its own pros and cons in each of the criteria mentioned above.
In the following section, we will explore the pros and cons of each market to help you decide between the Egypt or UAE dilemma.
The last, and most important criterion in deciding whether to invest in Egypt or Dubai is the return on investment (ROI) that is generated from investing in both markets.
The return on investment (ROI) generated from real estate investment in Egypt is much higher than that generated in Dubai.
Despite the more flexible legal framework and tax elimination in Dubai, Egypt yields a higher return on investment (ROI). Why?
In fact, Egypt has a higher potential for a greater return on investment thanks to its lower entry prices (the lower budget we mentioned in the next section).
The first criterion in deciding between Egypt or Dubai is your budget. The real estate market in Dubai is known to be more expensive than its rival in Egypt.
According to Forbes Magazine, thanks to the flexible government regulations, Expo 2020, focusing on green development, and fewer market risks, the real estate market of Dubai is worth a higher market value.
You will need a smaller budget to start investing in Egypt than in UAE. For example, an apartment in Dubai Downtown Compound by Emaar Properties in the Downtown area of the city costs 1734961.32 AED, which is equivalent to 472417.12 USD.
While a similar apartment in Uptown Cairo Compound, in almost the same central location by the same reputable developer, Emaar Misr, costs 12,600,000 EGP, which is equivalent to 250497.45 USD.
The market demand is a major element in deciding where and how to invest in any market. Its importance increases in comparison to Egypt or Dubai.
It is well-known that Egypt has a larger population, and hence it is expected to have a higher demand for real estate. However, Dubai has a larger market demand for real estate fueled by foreign investments that have a higher rate in Dubai compared to Egypt.
Another important factor in deciding whether to invest in Egypt or Dubai is your future intentions. If you are currently starting your first investment opportunity and you intend to make future investments, you need to think about where you will expand.
Will you expand in the same market, or will you expand into other markets to diversify your investment assets?
In fact, this criterion is positive for both cities; both cities offer a good opportunity for expanding your investments. Whether you started in Egypt and want to try in Dubai or vice versa, both are even.
However, it is highly recommended to diversify your investment portfolio for a higher profit rate.
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The legal framework in Dubai is more flexible than in Egypt. Aside from the flexible, seamless regulations, Dubai does not apply any property tax on buying or selling properties. The country does not impose any property tax to attract foreign investors.
On the other hand, Egypt is still in the process of making more seamless regulations. Yet, it imposes taxes on buying and selling properties, which affects the property’s profit rate.
Generally speaking, property type is a major criterion in the real estate investment decision in any market, and especially in deciding Egypt or Dubai.
Overall, commercial real estate is known to generate a higher return on investment (ROI) in any market.
But choosing to invest in a commercial property or a residential property in Egypt or Dubai yields a high profit based on the market’s performance overall, not based on the property type.
In other words, the type of property does not have that much effect on the decision of where to invest; it follows the general trend of the market you decide to invest in.
This criterion is specified for residential real estate. However, the choice to invest by flipping houses or renting them is affected by the overall stability offered in the market.
Since Dubai’s real estate market is known to be relatively stable compared to that of Egypt’s, investing in flipping houses in Dubai yields better profits in the long run.
However, there are many factors that play a role in the process, which can change the equation for Egypt’s sake.
Generally, investing in real estate through flipping or renting houses depends mainly on the market’s stability.
Before closing the article, you need to know that there are other factors that affect the decision of real estate investing in Egypt or UAE. These factors in fact, are minor, yet they still impact the issue.
Those factors include the following:
Now that you know almost all the factors affecting the investment decision in Egypt or Dubai, let’s give you some help on how to make the choice.
By now, you have all the needed information to make the best, well-informed investment decision. Generally speaking, each market has its own pros and cons; you need to decide where to invest based on your priorities.
You know that if you are looking for an investment opportunity with a smaller budget start, Egypt would be the ideal spot.
However, if you need a more flexible legal framework with no property taxes, then you should start right away in Dubai.
Lastly and most importantly, don’t forget that real estate investment in Egypt yields a higher return on investment.
Now, where would you start your investment series? In Egypt or Dubai? Will you start in Egypt and later launch more investments in Dubai? Will you take advantage of the flexible legal framework in Dubai or the higher ROI in Egypt?
Now you know all about the markets and conditions in both Egypt and Dubai. It is high time you took action.
Start investing in the Egyptian real estate market now with Nawy. There are many ways in which you can do so:
You just need to go through our platforms, pick the property you want to invest in, and contact our team of property consultants, who will help you through the entire process.
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