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WHY INVESTORS ARE STILL OPTING FOR PROPERTY IN EGYPT

Wednesday, 30 Jul 2008

Following the recent trends, one will easily see that Egypt has ensured it remain a top tourist destination – regardless of the current economic crisis and credit crunch, experienced in the European and British cities, investors remain undeterred when it comes to property in Egypt.

Egypt’s credibility as a nation, and its increasing success in the tourism market, can in large be attributed to the fiscal reforms the Egyptian government have committed themselves to.

Confidence in Egypt, as an emerging property market is at an all time high, due in part to the fact that the international community have faith in the policies and visions of the current Egyptian leadership.

There is a general consensus that investors consider property in Egypt, as an investment option, thanks to a “strong market in terms of excellent long term potential.”

Due to the fact that many Britons have an ‘insatiable desire’ to own property in a sunny location, the recent global economic slump has done little to suede investors from looking abroad.

In contrast to this is the fact that many other countries are currently in a position to offer good capital growth against relatively low and reasonably priced property.

Chris Nourse (Multicom Manager) went on to say that “Consumers are not willing to give up their holidays abroad, even if they are faced with higher bills and general expenses. Holidays are being seen more and more as essential”.

A large attraction remains the projected guarantee of large rental returns for property situated holiday destinations, the likes of Egypt, Brazil, and Italy – to name but a few countries.

This climate of positive change is extremely promising, as Egypt is bound for great success, as is aptly worded by Jennette Bradbury (Managing Director, Egyptian Experience), “We expect the Egyptian property market to grow substantially in the next few years. After many years of economic reform the area is ripe for investment. With record levels of tourism, the property market in Egypt offers excellent investment returns, from both rental yields and property price rises."

It is of general consensus that many rental investments will continue receiving good rental returns, even amidst the global economic crisis.

Recent reports also suggest that “foreign direct investment in Egypt this year is already running at its highest level for many years thanks to a couple of mega privatization deals, and that a number of high profile international investors are committing to the nation despite warnings that the profitability of their investments may not come to fruition for another decade or so.”

A reflection of property in Egypt’s gaining popularity is the potential for high returns on investments, with yields being known to reach up to 11 per cent. As a result, Egyptian property prices are on the rise , however are presently still indicative of its ‘newbie’ status in the property sector, as one could expect to pay as little as £37 000 for a 2 bedroom apartment in a beachfront resort-style complex.

Egypt’s wealth of historical background, abundance of exquisite scenery, as well as Egypt’s policy of low stamp duty, death succession duty of 7 per cent, and zero capital gains tax – translates into an unprecedented potential for positive growth.

All in all – one is not only guaranteed safety in the knowledge that property in Egypt will only become more desirable and thus increase in property value in the years to come – but as a hub of ancient cultural knowledge and ancient art, Egypt offers its visitors and inhabitants a plethora of little mysteries to uncover…

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