Egypt Visiting

The economy growth in last couple of years and new conducive laws and regulations for foreign investments have made Egypt and its holiday resort attractive investment destination for real estate buyers. With 12 months tourism season the rental potential of the apartments and villas is more than promising, average rental return 9% a year. The business environment, mainly tourism, is looking bright in the future with many new luxury resorts and increasing numbers of charter and regular flights arriving to airport. Therefore the annual capital growth is between 10-30%. The Foreign Direct Investment figure has boomed after new regulations introduced 2005 from 6,1 billion USD to 13 billion USD in 2007/2008 fiscal year, which makes the country one of the first in Africa and Middle East.

The biggest buyers in Hurghada and around are Germans, British, Russians. Popular are new sea-side compounds within 20-30 km from city center with possibility of private beach or swimming pools. The south coast of Hurghada, Sahl Hasheesh, seems to be planned for more deluxe apartments and villas, while north coast, El Gouna road, some what cheaper area. Some property development is also going on in the city center as well, especially wanted is Felfela road with its new promenade planning from the governmental side. European environment and trustable developers make El Gouna one of the foreign investment favorite.

The rent prices in Hurghada start from 1500 LE per month for a one bed room apartment in city center, 2000 LE is beginning price for 2 bedroom apartment in town. The price of seaside apartments starting usually from 250 000 LE, villas with beach line around 700 000 LE. With off plan investments prices being even lower, although the speed of construction must be then in contract clearly stated. The maintenance costs being low, it is expected that mortgage payments and bills can be covered for the year from the rental income achieved. No capital gains or inheritance tax are implemented.
However, the property registry in Egypt is out of date and incomplete, some properties on sale do not belong to register at all and therefore the mortgage demand from the bank can be problematic if possible at all. Therefore a knowledgeable lawyer is highly advisable. Legal fees are usually 1,5 %.


So taking into consideration all that, plus natural and cultural environment, the real estate market is predicted to be on steady growth.

from http://www.hurghada.com/info.aspx