Understanding Property Ownership in the Red Sea: The Real Legal Facts for Foreign Buyers

Property Ownership in the Red Sea Region – Legal Overview

There are several forms of property ownership commonly used in the Red Sea area. Understanding these structures is essential to ensure a secure and legally sound investment.

1. Direct Purchase from the Developer

A buyer may acquire a unit directly from the developer through a standard purchase contract.
Upon completion of all payments, the developer is required to issue a Power of Attorney (POA) confirming the buyer’s ownership rights and authorizing future resale or management of the property.

2. Purchase Through an Existing POA

In some cases, a buyer may acquire a property solely through a POA issued by the previous owner.
While this method is legally recognized, the combination of a purchase contract plus a POA generally provides stronger documentation and is considered the safer option.

Clarifying Misconceptions About “Green Contracts”

Some lawyers claim that a green contract (full property registration) is the only secure form of ownership. This is incorrect.
As long as:

• the property documents are valid,

• the developer is the lawful owner of the land, and

• the sale is conducted directly with the developer,

then the buyer’s position is secure.

Despite repeated claims by some lawyers, it is extremely rare—in practice almost nonexistent—for foreign buyers in Hurghada to obtain full property registration in their own name.
This promise is commonly used to collect fees, and after several years buyers are often told that the application was rejected by Cairo security authorities.

Legal Reality for Foreign Buyers

Under Egyptian law, foreign nationals are allowed to purchase up to two properties.
However, because foreigners are not granted full property registration, this limit is not enforced, and foreign buyers regularly purchase multiple properties without issue.

The main legal procedure a lawyer can reliably perform after purchase is the Court Validity Case (Siḥḥat Tawqīʿ).
This is especially valuable for off-plan purchases, as it confirms that the signature on the contract is genuinely the developer’s.

Resale Properties and Multiple POAs

When purchasing a resale unit, it is common to find multiple POAs issued over time.
To ensure a secure transfer:

• Each POA must be carefully reviewed for accuracy, validity, and continuity.

• All original documents must be collected.

• It is advisable to request a new purchase contract from the seller to accompany the latest POA.

In general, the more documentation you have, the safer your position becomes.

Developers and Chains of Land Ownership

Some developers acquire their land directly from the City Council, while others purchase through a chain of individual owners.
This naturally leads to multiple POAs appearing in the property’s history.
This does not present a legal problem as long as the developer’s legal team has verified the documents thoroughly, ensuring the developer—and therefore all subsequent buyers—are fully protected.

Final Recommendation

Each development in the Red Sea has its own legal background, documentation, and history.
For this reason, it is strongly recommended to appoint an independent, trustworthy lawyer—preferably one recommended by experienced buyers—to safeguard your investment and ensure the accuracy of all legal paperwork.

Bio – Ramy Kamel

Ramy Kamel is a real estate advisor based in Hurghada, specializing in property acquisitions, investment guidance, and legal awareness for foreign buyers in the Red Sea area. With extensive hands-on experience in the local market, Ramy provides transparent, practical advice to help clients make safe and well-informed property decisions.

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