Red Sea Property Developments
Finally having taken the plunge, Egypt is seeing huge amounts of investment in areas along the Red Sea and on the Sinai Peninsula. As more overseas buyers seek holiday homes and second homes in these resort areas the second home re-sale market has started to show profit potential over and above the initial capital outlay.
Property in Hurghada
Towns such as Hurghada have been at the forefront of new off plan development, the sleepy fishing industry and seasonal diving schools are being overtaken by construction projects, regular employment and an increased standard of living for the locals.
Property in Sharm el Sheikh
Sharm el Sheikh is another town that is seeing vast improvements in the area, with a growing number of off plan resort developments aimed at the tourist market, with a heavy emphasis on the scuba diving tourists who visit from all over the world to discover the stunning undersea world of the Red Sea.
Capital Growth
With prices in some areas rising 20-30% in the last two years and expected to achieve 15% in 2008, the capital growth in Egypt is worthy of your consideration. Rental yields are also healthy and likely to improve in coming years as more of the new off plan developments become completed.
The Egyptian Tourist Market
Egypt's proximity to the European mainland and renewed tourist infrastructure mean that this market keeps on growing as holidaymakers see the potential for owning another property in an attractive, exotic location.
Egypt has a a fairly established tourist industry principally based around the pyramids and cruises along the Nile and it was only a matter of time before the government realised that they could offer the international public so much more.
Buying Property in Egypt
Aside from the resorts, the majority of real estate investment takes place in the major cities such as Cairo and Alexandria where overseas property investors are overseeing the development of luxury residential areas and consequently generating strong international interest in the market. No wonder, as these major cities are currently attracting as much as 25% annual capital growth. The demand for investment property on the coast and in the cities, where there is a shortage of accommodation, and the subsequent ever-widening profit margins are set to continue due to a whole range of factors and benefits.
The availability of infrastructure, low cost of living (therefore low costs of property management and maintenance), low prices for the investor and the introduction of mortgages for foreigners in Egypt, have all combined to make conditions more than favourable. Furthermore, the abolition of a bundle of red tape measures relating to tourist activity, an easy-to-follow tax system and the absence of any inheritance or capital gains tax for foreigners are added incentives to Egyptian property purchase. With all of the factors coming together, underscored by the most stable economic conditions in years, it is hardly surprising that the increasingly popular holiday destination of Egypt has become a natural magnet for foreign real estate investment.
Egypt a "Buy to Let" Market
With the growing tourism industry in Egypt and low costs direct flights from the UK and other European countries, Egypt provides some fantastic buy to let investment opportunities.
Egypt Weblog
