Property and Real Estate Investment in Egypt

The main reasons Egypt is so popular with property investors are its stable economy and comfortable standard of living. At present the price of property in Egypt is still within the means of many buyers, however as prospective investors realize the countries potential these prices are anticipated to grow rapidly.

Seen as an emerging property market, Egypt real estate and property have already demonstrated strong returns for those who invested early, some have reached 20-30% per year depending on the area. The government has stepped up its promotion of the country and is dedicated to modernizing Egypt’s communications and transportation networks in preparation for the arrival of visitors to the country.

The popular Red Sea coastal resorts and main cities of Cairo, Luxor and Alexandria have received the main attention from overseas property investors. Various development projects are underway or have already been completed in the coastal resort regions. Due to this there has been an increase in tourism leading to a significant boost in demand for property in Hurghada, Sharm El Sheikh, El Gouna and Marsa Alam.

What has caused Egypt to become more popular during the last few years? Generally, people are drawn here for its interesting and exotic culture and traditions, yet it also manages to be modern in its provision of amenities. Egypt has the advantage of being just a short flight away from most major European cities, it can offer the ideal climate, has a stunning coastline and a broad range of activities and sights. Currently the country has a healthy economy and the government is energetic in its promotion of the country to tourists and visitors, these are just some of the basic ingredients needed for investors looking for long term returns from property in Egypt.

The success of a country like Egypt is reliant upon the tourist industry, as more visitors see the advantages of travelling here then things can only get better. In particular, property prices remain low in comparison to other European property hotspots such as Italy and Spain. These low prices, coupled with the increasing prices of other major European holiday destinations due to currency fluctuations, have ensured that an increasing number of overseas tourists will be travelling to Egypt in the months to come.

As Egypt receives more visitors each year, the demand for short term holiday rentals increases and with a year round warm climate the continual holiday rental is also positive. Budget airlines have already organized flights to the Mediterranean and Red Sea resorts, minimizing the time the journey takes and the cost. There are regular flights operated by British Airways and Egypt Air between Heathrow and Cairo International Airport where a connecting internal flight can then be taken to the coastal resorts of Sharm el Sheikh, Marsa Alam, Hurghada and Taba.

The investment opportunities for Egypt real estate are encouraging in the long term, for anyone considering investing in property here then this is a perfect time to make a move. The Egyptian government is promoting the country to overseas investors through tax breaks and a simplified purchasing procedure. Labour costs in Egypt are low, tourists are arriving in their thousands every week looking for rented accommodation, and the standard of living is improving within the country.

Long-established home buying destinations, such as Spain and Turkey have been the leading destinations for property investment for many years but they are fast being overtaken in favour of Egypt. As Egyptian resorts continue to provide excellent amenities and the number of visitor’s increases the potential for rental returns is high.