Glossary For Real Estate terms Important Words In Egyptian Market

Amal Ali 08 Jun 2022

The process of buying or selling properties is exciting, but it can also become a task that causes you confusion if you are not familiar enough with the basic steps of buying and selling. Also, if you are not knowledgeable about the most important terms used in the real estate sector you can get easily overwhelmed. In addition, recently the real estate field has become one of the most attractive sectors for individuals, whether to work or search for investment. This is a result of the positive progress made by the real estate sector in Egypt. It has proven its ability to remain stable and face crises in a balanced manner. Consequently, many people have started to think about working in the real estate field, whether as investors or real estate brokers.

In the beginning, the word real estate itself is used to refer to any type of immovable property such as houses, buildings, or plots of land. But it is commonly applied to any building used in housing or work. Real estate can be divided into residential real estate and commercial real estate.

In this article, we will try to make it easier for you to understand and know the most important terms used in the Egyptian real estate market. Whether you are someone who wants to start a business in the field or an individual looking to sell or buy your real estate.

Real estate development: Real estate development is carried out by companies specialized in planning and executing real estate projects, whether through the purchase of lands and building projects on them, or the restoration and restructuring of old and ruined buildings.

Real estate investment: It differs from real estate development in that it is the buying and selling of real estate with the aim of profit, whether direct profit or long-term profit. But in the end, it is not for providing urban projects. You can read this article 4 points that will interest you about the Egyptian real estate market.

Quick investment gain: It is one type of real estate investment, but it focuses on buying and selling real estate after a short period, such as six months, so that you get a quick investment gain in a short time. Some companies specialize in this type of investment.

Developer: You probably will hear this word a lot when announcing the launch of real estate projects in the market. Developers are the companies that plan and create real estate projects and then put them on the market for sale. Learn about the largest developers in the Egyptian real estate market.

Real estate marketing: We can describe real estate marketing as a group of activities carried out by real estate companies with the aim of marketing properties for sale or rent. Real estate marketing involves creating advertisements on websites, listing properties for sale, or communicating by phone with potential clients who are interested in buying or investing.

Leads: They are the group of people that express an interest in buying or renting properties, whether by interacting with advertisements or through the company you work with.

Real Estate Listing: It is an advertisement published by real estate companies to offer a unit or property for sale or rent. There are websites for this type of advertisement, where they can upload pictures of the property, specifying the location of the property, the unit area, and the required amount of money. These ads aim to show the advantages that the property possesses.

Real estate finance: It is a loan of money that you take from a bank or a financing institution intending to buy a specific property. In this case, this piece of property becomes the guarantor of the loan, and sometimes some real estate companies provide real estate financing, but under certain conditions.

Real estate brokerage: the companies that act as an intermediary between the seller and the buyer through real estate brokers, in return for a commission, agreed upon in advance with all parties.

Real estate consultant: a person who gives or provides advice in the field of real estate and financial investment to clients interested in buying and selling. Take a look at this article for more details. What is real estate consultancy and how can you benefit from it.

Broker: A person who does not have a legal license but performs mediation between the seller and the buyer, whether to find a property at a good price for the buyer or to find a buyer for a property offered for sale.

Real estate agent: is the person who contributes to identifying the seller and the buyer to get some and obtain a commission percentage in return for that.

The seller or the owner: is the party who wishes to sell his property, whether it is an individual or a construction company.

Commission: It is the amount of money that the real estate broker receives in exchange for the services he provides to both the seller and the buyer. It is a percentage agreed upon in advance and obtained by the real estate broker upon the completion of the sale process. Read this article for more tips when buying your home 5 tips to consider before buying your home.

Deposit: is a sum of money paid to confirm the desire to buy or invest.

Down payment: It is a percentage of the property value that is paid at the beginning of the purchase process and which is subsequently deducted from the total value of the property. The deposit is free of interest, which is added later on the installments.

Payments or installments: They are the amounts of money that are agreed upon to be paid in installments, divided over a specified period.

without interest: It is that you buy or own the property and pay the purchase amount without any percentage over the amount in the case of installments.

Closing the deal: It is the step in which the deal is completed after the customer is convinced and decides to buy or rent.

Return on Investment (ROI): It is a term that is meant by the profits that the company or seller will earn when investing or selling the real estate, and it is determined by a percentage such as 5% or 6%.

Price on application: It is a phrase that you are likely to find in real estate advertisements for sale, and it means that the unit price is disclosed only in the case of communication with the advertiser. This sentence aims to push the customer to communicate with the seller, which increases the percentage of persuasion and provides a better opportunity to sell the property.

Land area: It is the total area, whether for large real property such as resorts, residential compounds, or even single housing units. This area includes all utilities attached to the unit or property.

Building area BUA: It is the actual area, whether it is an apartment, a villa, or an entire property, after excluding the internal roads in front of the house or its surroundings, the walkway, the front and back garden, and other facilities surrounding the building itself.

Finishing: It is the state in which the property is delivered after the completion of the basics. The property or unit can be fully finished, semi-finished, or core-shell.

Off-plan projects: They are the projects or units that are sold off the map before the construction of the project is completed.

The master plan of the project: It is the complete plan that the developers put forward after completing the design of the project. The plan is an exact and detailed copy of the final form of the project, whether it contains apartments, villas, chalets, etc. Through this plan, customers can start buying units.

As in every profession, there is a set of terms of its own that facilitates dealing with it, and through this article, we have provided you with this set of terms used in real estate that will certainly benefit you in your upcoming real estate deals. If you enjoy reading articles about topics related to the real estate market, you should follow our weekly articles. You can also browse our website to find out about the latest real estate projects that are being launched in the Egyptian real estate market.

If you want to take advantage of our free real estate consultancy, you just have to contact us through this number 01003366453.