Property for Sale in Egypt by Destination Sun Homes

The property market has performed extremely well in the last 2 years. The Red Sea area has seen prices increase by over 25 per cent. As a nation of property fanatics, Britain is up there with the best of them when it comes to snapping up these hot properties. “The number of British buyers is on the increase. In 2006 British buyers increased by over 50 per cent compared to 2005. They’re attracted to value for money, low running costs, excellent transport links from the UK, superb climate, strong rental demand and high capital growth.

And with the demand for holidays on the Red Sea and increasingly on the Mediterranean coast showing no sign of abating, Egypt’s property market looks set to thrive. “The future looks bright,” says one agent. “Property prices are still good value for money. You can purchase a Red Sea beachfront apartment for as little as £30,000. Tourism continues to grow, and with a year-round climate the rental potential is fantastic”. However, as with all real estate registrations having a lawyer at hand is highly advisable.

The Egyptian government’s commitment to attracting foreign investment into real estate means the path is being eased.

All year round good weather make this a place to enjoy a holiday at virtually any time of the year. For an investment it also makes for a much longer season for rental potential
Flights form the Uk via Cairo and direct charter flights make travel time approximately 4 hours.
Development so far is very limited ensuring that the best locations are still available, many front line beach
Both property prices and the cost of living are way below those in the UK or the European Costas
The administrative language is English and all contracts and official documents will be prepared in English.
Egypt is a land of great cultural heritage. From your new home, new roads and domestic flights make most of the sights and wonders of Egypt only a short trip away.

Tourists have always been attracted to Egypt for its history that dates back to around 3200BC, for the warm waters of the Mediterranean Sea, for the diving possibilities on the Red Sea and more recently for the luxury hotels and resorts. The number of tourists in Egypt almost doubled between 2001/02 to 2005/06 and Egypt’s prominence in the tourist market is set to continue with an estimated 16 million visitors by 2014. An increasing number of visitors are buying into new build luxury apartment complexes in the major holiday hotspots and are being rewarded with low off plan prices, and guaranteed rental yields, a holiday home in the sun and an investment that even begins increasing in value over the build period.

These property investors are taking a very small risk in real terms since the government of Egypt has committed itself to transforming the country’s economy through the promotion of inward foreign direct investment over the long term. To that end the government began the introduction of new reforms to customs, income and corporate taxation in 2004; they are privatizing certain sector industries, working on currency liquidity and are trying to develop an export market for their natural gas deposits. Experts agree that all these efforts should improve the economy of the country, create more opportunity for employment and domestic wealth growth and increase the attraction of the country from an overseas investor’s point of view. 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 all added incentives to purchase Egyptian property.

In the resort areas of the Red Sea coasts, property investors are tapping into the increasing demand for short term rental accommodation, this market was non existent two years ago as in the past it was only possible to rent property on a long term basis. Developers and forward thinking real estate agents are offering property management services making it possible for owners to rent their properties. And with low costs of living, property management and maintenance are low.

Overall the future prospects for the property market in Egypt are positive. Egypt is a politically stable country and one currently enjoying the best relationships with many of the world’s most influential economies and hosted the “Economic Forum 2006 which was attended by all the influential countries worldwide, including the UK and USA. Last year as yet another sign of the Egyptian Government’s pro-active stance in promoting tourism and foreign investment the “Red Sea Riviera” marketing campaign was launched. This was extremely successful and has been followed up this year with “The Gift of the Sun” campaign which has been rolled out across Asia, Europe and North America. Egypt’s proximity to the European mainland and it’s renewed and developing tourist infrastructure ensures that the tourist market is set to continue to grow and produce the rental yields on properties which are attractive to property investors. Finally, the proposed introduction of mortgage’s (subject to status) on property purchases in Egypt from UK banks HSBC and Barclays Bank from the end of 2007 give yet more incentives for foreigners to purchase property in Egypt.

The economic climate in Egypt is open for investment, the marketing campaign at the forum 2006 was “Egypt open for business” And with investors being actively encouraged by taxation breaks and low labour costs Egypt is set to succeed. It is therefore hardly surprising that this increasingly popular holiday destination has become a natural magnet for foreign real estate investment.

Capital Growth Predictions

Based on a steady increase in investments in the tourist sector and a resulting surge in visitor numbers, Egypt offers promising growth potential to all types of investors, while some areas of the Red and Mediterranean Sea coasts as well as certain areas of Cairo and Alexandria, are currently attracting as much as 25% annual capital growth. Investment in Egyptian property is offering great opportunities for purchasers while it waits during the infancy of an exciting emerging market.

Rental Yield Predictions

Rental income from Egypt based property is of great interest to investors as high rental yields are already achievable from property located in the current tourist hotspots. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved. A fantastic year-round climate attracts a reliable tourist trade throughout the year.

With over one million UK holidaymakers visiting in 2006 and property price rises already outstripping most emerging markets, experts are predicting that Egypt could offer one of the greatest overseas property investment returns currently available worldwide.

According to Egypt's Tourism Authority, over one million UK holidaymakers visited Egypt in 2006, representing a 25% increase on the previous year. Property price rises are already outstripping most emerging markets and experts are predicting that Egypt could offer one of the greatest overseas property investment returns worldwide currently available. Average property prices in Egypt are expected to rise by 20% in 2007.

Since Egypt’s Economic Reform Program in the early 1990s, which focused on stabilising the economy, improving public finance and exchange rate policies, the

economy grew by 6% in 2006 and the anticipated growth this year is 7%. Property purchase is relatively simple in Egypt requires no purchases taxes, stamp duty, income tax nor capital gains tax and there is no restrictions on freehold ownership of property for foreigners in most of Egypt.

A rapidly expanding tourist market, the country, which is on course to welcome 16 million visitors from around the world by 2014, has benefited from one of the fastest growing property prices in the world, with the average property price rising by 50% in the last two years. It also offers one of the highest returns on investment worldwide, with rental yields in key tourist resorts reaching 11% compared to 4-6% in the UK.

Despite the recent boom, current prices still reflect Egypt’s status as a new player in There are so many positive aspects of the property market in Egypt that make the entire sector an exciting place to be right now that anyone serious about venturing into an emerging overseas real estate market should be focused on Egypt for at least the medium term.

First things first let’s remove the confusion – Egypt is not a country plagued by terrorism, drought or famine – it’s a stunningly beautiful, ancient and interesting country with a coastline that is brushed and caressed by both the Mediterranean and Red seas. It is also one of the most exciting and exotic countries in closest proximity to Europe giving investors a massive potential tourist audience to target; it is also a country that can genuinely boast year round sunshine on its Red Sea Riviera which means it offers investors year round potential for profit.

You can add to this the fact that inward foreign direct investment into Egypt is at an all time high, the country is receiving higher annual visitor intake than ever before and the country is enjoying its best relationships with Western governments in documented history if you like.

Furthermore the amount of investment and economic confidence in Egypt is opening up a wealthy and growing middle class sector who are keen to afford property for sale and rent in Cairo and Alexandria in particular, and this gives an investor a local resale market to target in the medium term which further boosts the long term potential of an investment made into the real estate sector which is currently dominated by the tourism market.

It’s a fact that the highest rental incomes achievable for a real estate investor in Egypt right now are from tourist friendly properties along the Red Sea and Mediterranean coastlines – properties that are well located and facilitated are most in demand from the tourism market looking for short term lets. But there’s also a growing retirement market in Egypt that’s attracting great attention and giving real estate investors another potential revenue stream to explore.

Egypt really is the place to be for real estate investors looking for immediate income and medium to long term capital growth and resale potential - and because the property buying process for foreigners in Egypt has become more affordable and more transparent in very recent years, the numbers of investors examining the market and exploring its possibilities is set to rise and rise.

Our analysis of the recent comprehensive economic review of Egypt collated and produced by Moody’s Investors Service together with the latest economic findings of the Institute of International Finance relating to Egypt’s performance reveal an overall positive economic outlook emerging which is good for Egypt’s property sector.

The development of outstanindg resorts ties in with Egypt's plans for revolutionizing its travel and tourism economy. Currently Egypt is popular - but plans are in place to liberalize the aviation routes into the nation and the World Travel and Tourism Council (WTTC) have conservatively estimated that this will push up international arrivals to in excess of 13 million annually and boost tourism generated GDP by a further 12%. Egypt has ambitious plans to become one of the most popular tourism hotspots by 2011 and the WTTC support their ambitions.

This increase in tourism demand and the general profile raising awareness activities being undertaken by Egypt of its nation's desirability for investment, for a holiday, as a second home or a great place to buy property will have a dramatic effect on a market where currently prices are attractively affordable and investment activity is beginning to take off. So in conclusion, Egypt's new property market is emerging and about to witness strong price gains, it is a market with all the right ingredients for long term success and therefore property in Egypt in 2007 makes an exceptionally interesting investment choice.

Egypt Investment Growth

Egypt has long been a popular travel destination. Today, due to encouraging economic trends, the property market in Egypt is becoming more popular as a location amongst worldwide purchasers and recent years have seen a growth rate of an encouraging 20-30% per annum in some key locations.

Property investment in Egypt, as in many emerging markets, relies heavily on the success of Egypt’s ever increasing tourism industry. Beautiful, well established tourist hotspots are already in existence, particularly along the Red and Mediterranean Sea coasts and cater for a wide variety of modern tourist requirements, from excellent diving and snorkeling, five star hotels and golf courses to cultural and historical activities.

New off-plan opportunities from heavy weight international developers are now springing up, attracting overseas investors looking for a secure

investment with good growth potential at rock bottom prices. Due to increased tourist numbers, these buyers are also safe in the knowledge there will be a strong market for their investment. Furthermore, the imminent opening of the newly modernized Cairo international airport in early 2007 is set to bring a new influx of visitors to complement Egypt’s new look 21st century tourist industry.

Due to recent reforms to streamline purchasing procedures in Egypt, the country now attracts more overseas property purchasers than ever before. This can also be put down to its relatively simple purchase system with lower taxes than in many other countries and no capital gains or inheritance tax.

Egypt Economy

Egypt’s economy is undergoing steady growth and in the last quarter of 2005 the annual growth rate in Egypt has risen for the first time to 6.1% and inflation dropped dramatically from a huge 18.1% in 2004 to only 3.1% in 2006

Due to a number of economic reforms, private business has increased to represent some 80% of the economy today. Experts agree that the current economic climate should improve the economy of the country, create more opportunity for employment and domestic wealth growth,

and increase the attraction of the country from an overseas investor’s point of view. With direct foreign investment continuously on the up, Egypt’s economy shows enormous potential over the long term.