Egypt is one of the most promising emerging markets in the world according to Steve Worboys, MD of property investment specialists Experience International.

The fundamentals are in place for the annual 25 percent capital growth being enjoyed in certain parts of Egypt as well as rental yields in double figures.

The country is seeking to diversify its economy through tourism and real estate – with increased tourism comes demand for short-term rentals which fuels a Fly to Let property investment culture.

Also with increased tourism comes a growing awareness of the fact that Egypt is one of the shortest haul destinations for Britons and mainland Europeans who want year round sun.

Then there’s the added attraction of the country’s history and culture, beaches and the development of resorts into which millions of pounds worth of public and private investment is being ploughed.

Worboys said: “The loose definition of an ‘emerging market’ in property terms is a real estate market that has yet to be tried and tested, where there is an element of risk hopefully offset by positive fundamentals for the potential of growth in terms of demand for property and the underlying value of land and real estate.”

In Egypt the emerging property market is being built on the tourism industry, the risk comes in the form of the nation’s once unstable economic past, the positive fundamentals for growth are centred on tourism, accessibility and the increase in interest in Egypt as a Fly to Let location.

A combination of facts and figures appear to be stacking up in Egypt’s favour, but can this attractive situation last.

Taking the element of risk as the starting point for the analysis of whether Egypt will remain a positive property investment location, there has been a strong upsurge in the nation’s exports of oil and gas, revenues from the Suez Canal are soaring, and growth in the tourism industry is booming.

This would appear to underpin a sustainably strengthening economy according to the International Monetary Fund. The organisation stated that ‘the Egyptian economy will continue to grow at 7-8 percent’ making it one of the fastest growing in the Middle Eastern Region.

In terms of the property market in Egypt as it stands today, according to the nation’s Prime Minister investment activity is up 40 percent that has helped increase foreign direct investment into the nation to over USD 10 billion.

Looking at the positive fundamentals required to ensure Egypt remains on track as a highly successful property investment location, one only has to look as far as the tourism industry.

But is all this just theory? Not according to a report from the United Nations World Tourism Organisation (WTO) that indicates that Egyptian tourism figures for 2007 rose by 20 percent. According to the World Travel & Tourism Council (WTTC) tourism is now on target for up to a 7 percent annual increase over the next decade, the Tourism Minister has a plan in place to attract 14 million visitors by 2011, and a new initiative targeting Asia, Europe and North America is expected to ensure a doubling of tourists by 2015.

One of the latest property developments proving highly popular and attractive with both home seekers and investment purchasers is the Pyramids 2 resort in Hurghada.

Comprising studio, 1, 2 and 3 bedroom apartments, this development, located close to an international airport and a PGA professional golf course, has an array of onsite amenities such as tropical gardens and swimming pools.

It is located within a short walk of the Red Sea and beaches, and prices start at £15,000.

• UK based Champneys Health Resort group, a leading name in the field of luxurious spa and wellbeing retreats, treatments and training, is about to take the brand a stage further with the launch of Champneys Marbella Spa Resort Apartments and Penthouses.

The company says that Champneys Marbella on the Costa del Sol will be a combination of a Spa with real estate investment options for buyers and Fly to Let investors.

There will also be an exclusive rental pool scheme which, claims Champneys, will allow property investors to achieve optimum yields due to the Champneys brand and increasing demand for overseas spa holidays.

Owners place their property within the rental pool, it is managed, maintained and looked after for them in their absence. The nature of the arrangement allows owners to enjoy a holistic hideaway home at Champneys for any number of weeks they desire.

The new Champneys Spa Resort project is contained within a national park with sea views. It is a 10 minute drive from Puerto Banus and the beaches of Marbella and close to several golf courses in the area.

According to the global spa resource ‘Spa Finder’, spa, health and wellness travel and tourism has witnessed 40 percent growth in the last three years alone.

Tony Roberts, UK Sales Director of Champneys Marbella said: We have invested thousands of hours research into the viability of an international resort.

“Our findings led us back time and time again to the fact that internationally speaking, demand for luxurious spa resorts is growing significantly and sustainably with both women and men.

Men now make up 24 percent in terms of demand in the UK, and this figure increases year-on-year. We have conservative projections to suggest that with just 65 percent occupancy levels at our flagship Marbella resort, those who choose to invest in Champneys real estate and partake in our unique rental pool scheme and enjoy up to six weeks personal use of their apartment or penthouse, can also benefit from annual rental yields of almost 8 percent. Investors should bear in mind however, that average occupancy across the board in Champneys resorts UK is nearer 80 percent.”

Property prices start from €633,186/ £505,462 for an apartment and €772,752/ £612,035 for a penthouse.

© Fly2Let.net Ltd l Terms of use l Contact l Free Subscription l Webmaster
Brazil l Bulgaria l Canada l Cape Verde l Croatia l Cyprus l Dubai l Egypt l France l Germany l Hungary l India l Italy l Morocco l Portugal l Romania l Slovakia
South Africa l Spain l Thailand l Turkey l UK l USA l Other Countries
Investment Property l Off Plan Developments l Ski Property l City Apartments l Golf Property l Beach Front Property l Land Investment
Cheap Flights l Car Hire l Property Finance l Property Insurance l Travel Insurance l Property Maintenance l Overseas Removals l Currency Exchange l Exhibitions & Seminars