Egypt’s thriving property market

5 June 2008

As more and more tourists head for the red sea, investment opportunities continue to grow. The Egyptian economy has experienced a remarkable turnaround in recent months and is proud to be able to offer savvy investors significant opportunities to buy low cost luxury property with an excellent rate of return. Major tourist cities are achieving as much as a 25% capital growth on buy to let property and as the demand for more accommodation increases fuelled by the growing numbers of tourists, so does the rental market flourish.

A major expansion project of the existing airport is underway to accommodate the increasing numbers of passenger traffic coming to Egypt every year, attracted by the excellent diving facilities, outstanding beaches and friendly family holiday market, tourist numbers in Egypt are expected to reach 14 million by the year 2010.
As the prices of property in Egypt are still a fraction of those we are experiencing in the UK, many investors do not need to secure mortgages to buy property here, consequently the property market is growing rapidly but prices are remaining very keen. With more and more budget airlines flying here the independent holiday and rental market will continue to thrive and so with it will grow the investment opportunities.

Ambitious plans have been announced by the Egyptian Tourist Minister Zuheir Garana to improve and develop the tourist market of the country and to increase hotel bed numbers by 240,000 in time for 2011, this target will be achieved by building up the number of attractions, committing to legislative changes which are designed to enhance the investment climate and offering incentives to private investors.

Currently there is a zero stamp duty, capital gains tax and inheritance tax for British Citizens living in the UK and if the property is left to family members.