Egypt provides visitors with year-round sun, a stunning wealth of history, world–class resorts and attractions such as cruising and diving. The country also has low stamp duty, death succession duty of 7 per cent and no capital gains tax payable on the sale of property. Egypt's economy grew by 6 per cent in 2006. The anticipated growth this year is 7 per cent. And all of this is accessible via a five-hour flight from the UK.
Given these features, it is perhaps unsurprising that Egypt's property market is booming. Last year over a million UK holidaymakers visited Egypt. This was a 25 per cent increase from 2005. The country is on course to welcome 16 million visitors from around the world by 2014.
Reflecting this increase in popularity, property prices in Egypt have surged and are now showing some of the highest appreciation values in the world. The average property price rose by 50 per cent in the last two years, according to the Egyptian tourism authority. Egypt also offers the potential for high returns on investment, with rental yields sometimes reaching 11 per cent, compared with a UK average of four to six per cent.
Despite this recent boom, current prices still reflect Egypt's status as a new player in the property market. A two-bedroom apartment in a popular tourist resort will cost on average about £37,000. However, prices aren't expected to remain at these levels for long. Approximately 2,000 properties were purchased by overseas buyers in 2006 and this figure is expected to double in 2007 and reach 10,000 by 2010, pushing prices up by as much as 20 per cent per annum for the next three years.
According to Jennette Bradbury, managing director of 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."
An example of the type of property you can find are the Desert Pearl Beach Apartments, at Hurghada, on the Red Sea Riviera. The complex consists of 226 gated, European style terraced apartments with communal tropical gardens, pool bar and swimming pools.They are 400 metres from Hurghada's sandy beaches and the shopping district. The complex will provide year round services such as maintenance, gardening and laundry services. There will also be a Fully equipped gymnasium, games room and internet café/business centre. These studio, one, two and three-bedroom apartments are available from £17,600.
