Egypt Property

Why Invest in Egypt? Hurghada Red Sea Investment

Why should you invest in Egypt’s property? Investment property in Egypt is becomming more and more popular as property investors today are considering investment in Egypt as an attractive market for a stable investment with ideal growth rates and high capital return compared to other markets. Egypt today offers a solid economic climate in which to invest. Egypt also an emerging property market in key tourist locations and already offering excellent returns on investment and shrewd investors are eager to get involved, while prices remain stunningly low increasing interest in investment property in Egypt.

Do you know that: The World Bank chose Egypt as the sixth country among top 10 countries all over the world to apply the economic reforms in 2007. The UN Conference on Trade and Development’s World Investment Report, Egypt was ranked the second largest country in attracting foreign investment in Africa. Growth Domestic Product (GDP) in Egypt has risen for the first time to 7.1% in 2006. Cairo & Alexandria Stock Exchange is considered among the best ten emerging markets in the world. In 2005 Egypt issued a decree (number 548) assisting non-Egyptians to invest in the tourist sector by abolishing a number of red tape procedures and streamlining investment procedures, An uncomplicated tax system with no inheritance or capital gains tax for foreigners which added incentives to Egyptian property purchase. Factors affecting real estate investment attractivety in Egypt: Economic factors. Political factors. Natural and Cultural factors. General factors. 1. Economic Factors: Investment property in Egypt has been popularised due to Egypt’s economy undergoing steady growth and in the last quarter of 2005, the annual growth domestic product (GDP) in Egypt has risen for the first time to 7.1% in 2006 and inflation dropped dramatically from a huge 18.1% in 2004 to only 3.1% in 2006. Due to a number of economic reforms, private business has increased to represent some 80% of the economy today. Experts agree that the current economic climate should improve the economy of the country, create more opportunity for employment and domestic wealth growth, and increase the attraction of the country from an overseas investor’s point of view. With direct foreign investment continuously on the up, Egypt’s economy shows enormous potential over the long term because of the following:

Investment property Egypt sees property price returns of up to 30% per annum in some locations. Low cost of living and very low property prices. Strong economic growth in recent years (GDP 7.1% in 2006) Government reforms and incentives for foreign investment, making the property investment process easier than ever before. Strong growth in the tourist industry due to increased air services, modernization of amenities and luxury resorts under construction. Low Cost of Living The cost of living in Egypt is far lower than in most European countries. As a result, the cost of maintaining and managing your property is very low and it is small wonder that Egypt is also increasingly popular amongst foreign property purchasers.

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