egyptian property and tour specialists

Why Invest in Egypt?

Tourists are attracted to Egypt for it’s history that dates back to around 3200BC, for the warm waters of the Mediterranean Sea, for the diving possibilities on the Red Sea and for the luxury hotels and resorts that make Egypt something special for the international tourist. 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, guaranteed rental yields, a holiday home in the sun and an investment that even begins increasing in value over the build period.

Reasons Why Egypt is an Intelligent Property Investment Location

• Low property prices starting at around £20k
• Year-on-year capital appreciation of between 20-30%.
• Beautiful, well established tourist hotspots suitable for varied tourist interests, from excellent diving and snorkeling to cultural and historical locations
• Stunning natural and unspoilt landscape
• Steady annual growth in tourist figures
• High rental market demand predicted
• Less property tax than paid in the UK.
• No capital gains tax
• British residents avoid inheritance tax on any Egyptian properties
• Warm desert climate with temperatures ranging from 14°C in winter to 30°C in summer and sunshine all the year long.
• Year-round tourist season
• Politically stable country
• Strong economic growth and inward investment creating a rich investment climate.
• Well renowned developers creating luxury resorts to cater for Egypt’s new influx of international tourists
• Easy air access from many European destinations makes Egypt an ever popular medium haul holiday location
• Cairo International airport is being modernized and a new terminal has been built.
• New terminal at Sharm International airport opened end 2007
• Relatively low cost of living and maintenance costs
• English is widely spoken, after Arabic

committed government

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. 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.

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. 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.

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 stabilizing 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. Article Source: http://EzineArticles.com/?expert=Greg_Walters

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. If these are not reasons enough alone for a property investor to get curious about Egypt, how about the fact that Dubai based mega property developers Emaar have just committed millions of dollars to the Egyptian residential real estate market place in Cairo? Or what about the fact that the Egyptian government have slashed property related taxation costs to make the whole process of owning real estate in Egypt that much more affordable for more people?

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. Article Source: http://EzineArticles.com/?expert=Rhiannon_Williamson

News article: Positive Economic Outlook Good for Egypt’s Property Sector. 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.

News article: Buying a Property in Egypt For investors, second home hunters and even those looking to develop or renovate real estate, buying a property in Egypt just became a million times easier with the announcement that one of the leading financial institutions in the GCC has partnered with Egypt’s first mortgage company to develop, promote, market and sell a sophisticated range of property finance schemes for all those buying, investing or developing property in Egypt.

Egypt in many people's eyes is a nation still emerging from previous governments' poor efforts to promote the country and as a result few people are aware of the enormous property investment potential that there is in this stunningly beautiful, ancient and historic country. But rest assured, this situation will not last for long and those who want to get in ahead of the crowd will be buying property in 2007 and watching everyone else play catch up in 2008. Currently the Egyptian government is working through a process of aggressive reforms to strengthen and stabilize the economy, prove political stability and promote relations around the globe with nations such as the USA and UK. It is also a country actively courting foreign direct investment and which has received massive financial commitment from the Middle East.

Much of this commitment has come from real estate giants such as Emaar Properties and DAMAC properties…the former are already in the development process for massive luxury developments in Cairo for example and the latter have literally just announced multi billion dollar plans to develop a mega resort across 320 million square feet of land in the north of Hurghada. The Gamsha Bay development will comprise 55,000 housing units across nine distinctive residential zones with construction taking place over the next ten years. The development of resorts such as these 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.

The Egypt property market was in a year long recession heading into 2006. The market was hit because of the threat of terrorism and other economic and political factors. However, with the Dubai based developer Emaar taking an interest in the Egypt property market things are starting to look up. Egypt has always had a decent tourism sector which provided the economy with a boost, but it was flagging in recent years until the government really decided to put an emphasis on tourism and attracting visitors to the country. Thanks to promotions making the concept of Egypt a viable vacation spot, the Egypt property market’s coastlines along the Red Sea and the Mediterranean Sea have begun attracting a lot of foreign investor interest. With the current low prices for properties in Egypt, it is a very good time for people wanting to invest in a low risk proposition. The current real estate prices may be low now, but they have started rising.

Although the Egypt property market is just starting to pick up, the short term rental market is definitely thriving. The short term rental property market in Egypt has been giving investors the best returns so far. However, with new legislation being introduced to make it easier for overseas buyers to purchase housing in the Egypt property market is will not be long before the real estate sector in this ancient land catches up to its short term rentals market.

Egypt has always been laden with mystery and history. It has been ruled by ancient dynasties lost to us in the mists of time. Its streets were trod by the ancient Greeks, the Romans and a whole slew of other peoples. It has always been an international country where spirituality, commerce, art and beauty have met up in symbiotic harmony. With its growing tourism sector, the Egypt property market is sure to soon attract the same interest and attention that is has known historically. For foreign investors looking for a low risk place in which to invest their money, Egypt property is definitely a good bet. It has already one of the best high-end, medium haul destinations for Europeans travelers. Once word spreads that Egypt is more than just history and culture, the Egypt property market is sure to get a big boost- and when that happens, investors who got into the game now are sure of making a very good return on their low risk investment.

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.

Egypt’s Prime Minister, Ahmed Nazif is concentrating on the country’s potential as a promising investment hub, especially in major infrastructure sectors, which will inevitably have a direct result on the attraction of Egypt to foreign investors. During the Middle East Travel and Tourism Summit of 2006 in Jordan, Munir Nassor told more than 400 leaders of from the international tourism industry that Egypt and the Middle East as a whole, can expect to attract new investment in the hotel, spa and airport sectors. He added, “The cooperation we’ve had so far between private and public sectors is giving the right kind of push forward”.

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.

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 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.

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.

So interest in the investment property market in Egypt is beginning to awaken as the wider world becomes aware of the excellent investment opportunities and incentives available for investors in Egypt.

The key factors attracting overseas investor interest include

• Egypt’s fast growing tourism sector, over 1 million UK tourists alone visited Egypt in 2006 and Egypt is on course to welcome 16million tourists worldwide by 2014
• The government is continuing to commit to legislative initiatives designed to enhance the investment climate
• Property prices in Egypt remain low and affordable whilst demand for quality property for sale and short term let is increasing. The majority of real estate investment interest is currently centered upon the Red Sea resort areas of Egypt and the major cities like Cairo and Alexandria.

In the resort areas on the Red and Mediterranean Sea coasts property investors are tapping into the increasing tourist demand for short term rental accommodation; this market is currently returning the best rental yields countrywide. The second home resale market in the resort areas is also beginning to present profit potential on the underlying capital investment made because more overseas buyers are seeking holiday homes or second homes in these areas. Egypt is close at hand for European holiday makers, less than 5 hours flying time and therefore owning a holiday home in this exotic location makes perfect sense for many European travelers. In Egypt’s main cities like Cairo and Alexandria overseas property investors are again seeking to profit from rental returns, and with the creation of brand new luxury residential property districts like Cairo Heights and Damac’s new project called Hyde Park in New Cairo international interest is increasing.

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 that it has ever enjoyed. The economic climate in Egypt is open for investment and investors are being actively encouraged by taxation breaks, low labor costs and a country that has a growing middle class who are beginning to exercise their increased purchasing power.

Overseas real estate investors are aware that the growth in the purchasing power of the domestic market is fantastic for the long term profitability of all investments in Egypt’s property sector. The overseas tourism and second home markets will account for good yields and returns but a growth in domestic demand and purchasing power will allow investors to more aggressively target Egypt safe in the knowledge that they have a wider market to potentially profit from.

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