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INVESTORS CONTINUE TO OPT FOR PROPERTY IN EGYPT

Tuesday, 29 Jul 2008

The prospect of growth in developing markets means that property investors are becoming more adventurous in their choice of location, an investment firm has said.

According to Mr Shah’s comments, "I think with the established markets, it's never going to really die down. Even with the recent scare in the Spanish property market, I don't think it's really died down to that degree. Even in tried and tested markets, I don't think you can go wrong … You've got the security, you've got guaranteed capital growth; although it's going to be slow. It's not going to be as high as what you’d find in somewhere like … India, or Brazil, Morocco, Egypt.”

“We're finding that Morocco, Egypt and Brazil seem to be the highlights of the day at the moment … People are being quite adventurous in that respect. And capital growth is really, really good in these locations. You're looking at anywhere between ten, fifteen per cent a year," he added.

The possibility of snapping up a bargain property is drawing many foreign investors to Egypt, an expert has stated.

An estimated £4 billion of City bonuses predicted for investment in the capital's properties is now finding its way to overseas housing markets according to experts at the Homebuyer Show.

A shortage of suitable London properties is seeing investors with bonuses to spend looking overseas, new research reveals.

Most estate agents in the traditional investment area of the City and Docklands had less than ten properties for sale at any one time at the end of last year - an all time low.

This means the markets next in line for investment are likely to be Egypt, France, Spain, Bulgaria and the United States, with more adventurous investors buying homes in Barbados, Dubai and Brazil.

"These wealthy investors will be attracted to places like Egypt, where they will be able to avoid paying tax on their purchases," commented Nick Clark, (Managing Director of Homebuyer Events).

"We will also see considerable investment taking place in Europe, both in traditional countries like France and Spain as well as the emerging markets of Egypt, Poland, Bulgaria and Hungary."

Property experts in Egypt have commented how: "Over the past few months we have seen an increasing number of people, especially from the London area, wanting to buy larger more luxurious properties of two and three bedroom apartments and putting down 50 per cent or more of the property price as a deposit.”

Paul Collins, spokesperson for the BuyAssociation website, stated that the country was very popular because of the relative affordability of high-quality houses.

Commenting on the Egyptian market, he said: "Property is very, very cheap in comparison with other places where you have similar facilities and similar climates."

He added that the country's weather was also a strong draw for overseas investors, as they were "virtually guaranteed" to get hot and sunny conditions when visiting.

Other markets gaining investor interest include the Latin American country, Brazil, which appears to be more attractive thanks to good exchange rates and luxury properties from £130,000, and Dubai, which has proved popular due to the tax-free earnings it offers and the high rental yields of eight to ten per cent.

Meanwhile, tourists in Egypt are currently enjoying the opportunity to view the face of the country's former ruler King Tutankhamun.

The mummified pharaoh has been placed on public display for the first time, exactly 85 years after it was first discovered.

Property Select offers a comprehensive selection of overseas property in Egypt, news, members club and reviews of the latest property developments.