Send to a friend

News

Red Hot Red Sea - 12 February 2008

Cheap property and a booming economy make Egypt a tempting market for investors. As demand for investment property in emerging markets continues to soar despite negative press on the credit crunch, many of today’s overseas investors are not put off. Buyers are faced with an overwhelming choice of products but, with a little insight, it is not hard to see why property in Egypt has won itself a rightful place in eye of the overseas investor.

Egypt’s economy has taken off in the last few years, mainly due to new government initiatives and a clear insight into the benefits of foreign investment. Legislation passed in 2004 now makes it possible for non-Egyptians to own, sell and let property freely.

As the focus of the tourist market, the Red Sea Coast offers a real estate market still in its infancy which is expected to spur on tourism, in line with government targets.

An annual GDP growth of 7 per cent, the ongoing consolidation of the banking sector and a reduction and simplification of both taxes and Customs tariffs are all going a long way to improve the prospects for Egypt as a promising investment location.

Attracting over nine million tourists each year and with figures rising, Egypt enjoys year- round sunshine, warm turquoise waters heavily populated by marine life, and plenty of historical sites. Red Sea resorts are now receiving more visitors than the more traditional destinations of Luxor and Aswan.

According to Amani El Torgoman, Director of Tourism Operations at Travco, the country’s leading travel agency, “In the past it used to be older people who go on Nile cruises to see antiquities, now it is younger families who come for a beach holiday and may just take a day to see Luxor”. This is great news for investors, who saw reported increases of their coastal property stocks reach 101 per cent in 2007.

Zoheir Garana, Egypt’s Tourism Minister, who has spent most of his career in the private sector, states, “Our objective is to reach 14 million tourists in 2011”. Likewise, Mr.Garana aims to introduce products to attract high spenders and promote the country’s strength as a luxury destination that offers excellent golf, beaches, yachting, diving and shopping.

Key to Egypt’s tourism expansion plans is the planning of large integrated resorts on its coastline, all offering luxury accommodation and residential property as well as marinas, spa and golf resorts. These creations are not simply ideas in the pipeline; they are now becoming a reality.

Such prime locations in Egypt offer a strong second home resale market, particularly in the resort areas, as most overseas buyers are now seeking holiday or second home locations as lifestyle choices. In addition and in tandem with increased economic success, the purchasing power of the domestic market in Egypt is on the rise, offering fantastic long term profitability.

Outstanding cooperation from public and government institutions has undoubtedly created a unique and developing tourist market. Beautiful resorts, low prices and a racing economy make Egypt a highly lucrative country in which to invest; so much so that many wise investors are seizing a timely opportunity to enjoy their holidays and make some money.

Post this article to:

del.icio.us Digg Newsvine Reddit MyYahoo! Facebook

Related Articles

• Buying a Property in Egypt