Property in Egypt in 2007 - an Interesting Investment Choice

All eyes are on Egypt and its economy at the moment as the Egyptian government continues its aggressive series of reforms designed to boost foreign direct investment, reduce a budget deficit, improve the lives of Egyptian people and ensure the nation performs to the best of its ability and is accepted globally by more nations as a trading partner and viewed as a politically and economically solid nation.

Property in Egypt in 2007 will represent an interesting investment choice and 2007 is likely to be one of the best years for investors to bag bargains in this emerging market that will reap them substantial capital appreciation and rental returns over at least the medium term.

At the moment investors committing to Egyptian property are purchasing at a time when many prospective future buyers of resale stock or renters of investment properties still consider Egypt a less attractive emerging nation to commit to. Egypt still suffers unfairly from a reputation earned by previous governments as a nation unwilling to negotiate with the likes of US and UK and a country with unaddressed poverty issues for example. But so much has changed in Egypt in an incredibly short period of time that this old attitude will erode and be replaced by an understanding of what Egypt has become - namely an astute nation working hard to attract investment, to boost the economy and the prospects of the local people and a country in which many Middle Eastern investors are already committing billions of dollars to a burgeoning real estate market.

In 2007 this perception of modern Egypt will disseminate and the attraction of the nation in terms of its climate, history, natural landscape and cheap property prices will fuel demand for second and holiday homes as well as retirement properties and holiday villas and apartments to let. Furthermore in 2007 tourism arrivals in Egypt will start a pattern of increase which, according to a special report into the effects of Egypt's liberalisation of aviation accessibility by the World Travel and Tourism Council will only be the start of a surge in inward flow of travel and tourism demand. International arrivals in Egypt are expected to increase to 13.4 million by 2011, boost tourism generated GDP by 12% by 2011 and generate over quarter of a million new jobs in Egypt in the same period of time and 2007 is when this increase will begin.

An investor who wants to be first into this emerging market has been pipped to the post by the likes of the UAE's Emaar Properties, but rest assured developers such as Emaar are producing the properties that will generate investors who buy in Egypt in 2007 the strongest returns possible. Emaar are already firmly embedded in the likes of Cairo, and DAMAC Properties, the Middle East's largest private sector luxury property developer is the latest in a long line of names to agree terms with the Egyptian government for the construction of amazing property developments across the country.

DAMAC are to construct a 320 million square feet development comprising 55,000 housing units across nine distinctive residential zones over the next ten years and plough billions of dollars of investment into this, their Gamsha Bay project at the north of Hurghada.

According to a recent version of the CIA world factbook, Egypt needs to concentrate on attracting FDI - well, by focusing on the real estate sector Egypt is certainly managing to achieve significant foreign direct investment increases which bodes exceptionally well for the long term prospects of the nation - an important factor for an investor to consider when wondering about how long to commit to Egypt for. While Egypt's new property market may be 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.

Source: Amberlamb (January 2007)