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02 Aug 2007

A Guide to Property Investment Egypt

property investment egypt

The property market in Egypt is rapidly moving from emerging in nature to more established as the levels of foreign direct investment commitment into the real estate sector increase and general investor interest intensifies.

The reasons for the ever strengthening nature of property investor interest in Egypt are based on incredibly solid travel and tourism, economic and political fundamentals, here are just some of strongest factors driving the market forward..

1. Political Stability Promotes Property Investor Commitment in Egypt

Egypt is a politically stable nation taking an ever increasing role at the forefront of international politics. Western countries have a very pro-Egypt standpoint and Egypt is regarded as not only an influential country in Arab politics, it is absolutely and unwaveringly pro-western. All of these factors give an investor in property in Egypt the confidence they need in the political will and backbone of the nation.

2. A Strengthening Economy Boosts Property Investment in Egypt

The economy in Egypt is going from strength to strength on the back of indefatigable governmental economic reform and massive domestic and foreign direct investment.

GDP grew by 5% in 2005, 6.8% in 2006 and according to The Economist magazine it’s on target for 7.3% growth in 2007.

Naturally a buoyant economy enhances the potential for property price appreciation as local affordability improves, but it also means Egypt is reinvesting wealth into the improvement of everything from amenities and infrastructure to accessibility which are all factors that have a positive and direct effect on the overall appeal of the nation as a place to holiday, live, retire or buy a property.

3. Travel and Tourism Growth in Egypt Advances Property Investor Profits

According to World Travel and Tourism Council (WTTC) predictions, international arrivals in Egypt will increase to 13.4 million by 2011 increasing tourism generated GDP by 12% and generating in excess of a quarter of a million new jobs in Egypt in the same period. Prior to reaching these targets the WTTC has Egypt on track for enjoying 21.4 billion US dollars worth of economic activity in 2007 which will account for 16.3% of GDP and overall, Egypt's travel and tourism growth rate is expected to hit 7.9% in 2007 and then level at around 5.4% per annum between 2008 and 2017.

These figures provide an investor with tangible growth patterns that they can translate into a sustainable and increasing demand and potential for profit from property in Egypt.

4. Favourable Taxation Regime Attracts Real Estate Investors to Egypt

Property taxes in Egypt are far lower than in the UK, there is no capital gains tax to erode an investor’s profits and because British residents can legally avoid inheritance tax on any Egyptian properties this is attracting ever greater numbers of buyers and investors to the market.

5. Excellent Accessibility Enhances Property Market in Egypt

Egypt is one of the most affordable medium haul destinations offering year round sunshine for British and Europeans, and it is a nation increasingly serviced by cheap flight operators following on from Egypt’s recent liberalisation of aviation accessibility.

Improved accessibility and increased affordability of accessibility all lead to greater numbers of arrivals and higher levels of interest among those seeking a holiday property they can quickly and cheaply reach.

6. Room for Egypt Property Price Appreciation

With starting prices currently so favourable and demand and affordability in the market increasing, the majority of real estate experts in Egypt predict that there is room for an annual appreciation in property prices of at least 20% for the medium term.

7. Choice of Quality Property Developments in Egypt

With the likes of global real estate giants Emaar and DAMAC developing resorts within Egypt, the pressure is on all developers to create quality real estate which bodes exceptionally well for the long term appeal of Egyptian property.

8. Beautiful Climate Guarantees Demand for Egyptian Property

The climate in Egypt is conducive for year round tourism appeal which naturally extends the period of time annually when investors can attract and expect tourism rental interest in their properties. This gives an investor stronger potential to achieve maximum rental yield from well located Egyptian real estate.

9. Egypt’s Unrivalled Appeal Attracts Property Buyers

Egypt offers unrivalled historic appeal with over 7,000 years of civilisation for visitors to explore and get to grips with, it is a nation with vastly divergent and intensely appealing landscapes, Egypt has some of the most beautiful beaches in the world, is a nation naturally blessed with amiable and welcoming hospitable inhabitants, and in addition to this, the nation has become a top dive destination because of its coral reefs and is able to offer an exceptionally broad base of tourism interest ensuring maximum arrivals for an investor to target.

10. Government Welcomes Foreign Property Ownership in Egypt

The Egyptian government has already committed to far reaching economic, investment and improvement legislative programmes designed specifically to expand the foreign direct investment appeal of the nation and to smooth an international investor’s path to profitable returns, thus making the environment attractive for property investors today and ensuring the long term appeal of property investment in Egypt.

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