As a location for property investors, Egypt remains relatively undiscovered - but experts are increasingly recommending it for those looking to secure their funds in high-return assets.
The fact that the world is only just beginning to awaken to the opportunities that the north African state holds should make it all the more attractive to investors - especially as the market begins to hot up and investors head off to make modern-day Egyptian discoveries of their own.
Low off-plan prices (from £30k for a beachside apartment), guaranteed rental yields, holiday homes in the sun and high returns on investment (up to 25% per annum in some locations) are all reasons for the current success of Egypt as a holiday and property location.
An increasing number of visitors are buying into luxury apartment complexes in the major holiday hotspots, safe in a strong belief in the current Egyptian government’s commitment to further economic growth and stability. This, in turn, has fuelled greater interest in the Egyptian property market - with the government continuing to put forward initiatives and legislation designed to encourage investment.
Egypt is now well known as a number one medium haul top end destination for European travelers.
Capital growth
Tourism provides a vital source of foreign investment for Egypt and the Egyptian government has begun to heavily promote this sector over the last few years. Visitor numbers are rising rapidly and official figures show that the annual number of British tourists holidaying in Egypt has risen by a third in the last 6 years to 350,000.
Rental income
For those investors interested in rental income, 5-star properties on the Red Sea coast can easily generate around £150-£200 per week in rental income and a 20% yield is not out of the question. The Red Sea Riviera is an up and coming area of Egypt, therefore interest from tour operators is likely to be high.
- Low property prices starting at around £30k
- Year-on-year capital appreciation of between 20-30%.
- Beautiful, well established tourist hotspots suitable for varied tourist interests, from excellent diving and snorkelling to cultural and historical locations
- Stunning natural and unspoilt landscape
- Steady annual growth in tourist figures
- Less property taxes 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
- Politically stable country
- Strong economic growth and inward investment create 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 a popular medium haul holiday location
- Cairo International airport is being modernized and a new terminal is to be built by early 2007
- Relatively low cost of living and maintenance costs
- English is widely spoken, after Arabic