Egypt A sound emerging property market

Author: Greg Walters Article: With over one million UK holidaymakers visiting in 2006 and property price rises already outstripping most emerging markets, experts are predicting that Egypt could offer one of the greatest overseas property investment returns currently available worldwide. According to Egypt's Tourism Authority, over one million UK holidaymakers visited Egypt in 2006, representing a 25% increase on the previous year. Property price rises are already outstripping most emerging markets and experts are predicting that Egypt could offer one of the greatest overseas property investment returns worldwide currently available. Average property prices in Egypt are expected to rise by 20% in 2007. Since Egypt’s Economic Reform Program in the early 1990s, which focused on stabilising the economy, improving public finance and exchange rate policies, the economy grew by 6% in 2006 and the anticipated growth this year is 7%. Property purchase is relatively simple in Egypt requires no purchases taxes, stamp duty, income tax nor capital gains tax and there is no restrictions on freehold ownership of property for foreigners. A rapidly expanding tourist market, the country, which is on course to welcome 16 million visitors from around the world by 2014, has benefited from one of the fastest growing property prices in the world, with the average property price rising by 50% in the last two years. It also offers one of the highest returns on investment worldwide, with rental yields in key tourist resorts reaching 11% compared to 4-6% in the UK. Despite the recent boom, current prices still reflect Egypt’s status as a new player in the property market and offers excellent value for money. A 1 bedroom apartment on Egypt’s Red Sea coast could be purchased at around £25,000GBP. $50,000 USD. However, prices aren’t expected to remain at these levels for long, as demand soars. Approximately 2,000 properties where 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 annum for the next three years. More information regarding property in Egypt can be found at www.offplanpropertyabroad.com About the author: Greg Walters is principal of a leading overseas property consultancy based in Staffordshire in the United Kingdom.