Why Invest in Property in Egypt

Egypt is currently experiencing a tourism boom, with the number of visitors going up 25 per cent from 2005 to 2006. Other factors that make investing in property in Egypt attractive include the sunny weather, the many historical attractions, highly rated diving locations and resorts, and average rental yields of 11 per cent in tourist areas. Investors also benefit from low rates of stamp duty, death succession duty at seven per cent and no capital gains tax. The most popular property investment area in Egypt is the Red Sea coast. The area also has the added benefit of planning laws against high-rise, high-density developments.

Property investors moving into the real estate market place in Egypt right now could be said to be pioneering; but with the Egyptian government’s absolute commitment to economic growth and stability and the country’s growing attraction with international visitors ever increasing, those buying now are set to profit substantially from their property investment decision over the medium term whilst benefiting immediately from some incredibly imaginative and exclusive modern developments being constructed across the country. The property market has performed extremely well last year, the Red Sea area has seen prices increase by over 25 per cent. Investors are attracted to value for money, low running costs, excellent transport links from Europe, superb climate, strong rental demand and high capital growth. With the demand for holidays on the Red Sea, the property market looks set to thrive. In the resort areas on the Red and Mediterranean Sea coasts property investors are tapping into the increasing tourist demand for short term rental accommodation; this market is currently returning the best rental yields countrywide.

T he second home resale market in the resort areas is also beginning to present profit potential on the underlying capital investment made because more overseas buyers are seeking holiday homes or second homes in these areas. Egypt is close at hand for European holiday makers and therefore owning a holiday home in this exotic location makes perfect sense for many European travellers.