Property investors today seeking 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.
Egypt’s economy is 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:
The government of Egypt is committed to transforming the country’s economy through the promotion of foreign direct investment over the long term. As a consequence, it has recently introduced new reforms to customs, income and corporate taxations, while privatizing certain sector industries, and developing an export market for their natural gas deposits.
Experts agree that all these efforts should improve the economy of the country, create more opportunity for employment and domestic wealth growth while increasing the attraction of Egypt for overseas investors. Growth in the tourist industry netted 2.5 million tourists in 2005, representing 6% of GNP. This figure is set to rise with growing introduction of luxury purpose built resorts throughout the country – all good news for today’s property investors in Egypt.
Today, investors seek the stability and simplicity of the property market to gain good returns on investment. Under-performing stock markets are often proving more volatile than property and this is especially true for the non-professional as there are many external factors that can effect your financial investment. The benefit of buying specifically for investment purposes is the removal of emotion from your purchase while property is used purely as an investment vehicle. Egypt offers many possibilities in the form of re-assignable off-plan contract options to sell at a substantial profit prior to completion, or "buy-to-let" situations to generate reliable rental income and eventually substantial capital appreciation.
After four years of stagnant growth, Egypt posted a strong increase (146%) in FDI during the fiscal year ending July 31, 2005. In comparison with the investment Egypt requires to achieve its economic goals, this is a modest achievement, but it is a start. The government forecasts that FDI in the current fiscal year will grow by 40%, reaching $1.4 billion. The property market in Egypt currently sits on the brink of a boom period and now is a perfect time to purchase property in Egypt. While infrastructures are readily in place and prices are low, many investors are seeing an opportunity in the making. The imminent introduction of mortgage facilities to foreigners in Egypt will precipitate an increase in demand for property and prices will inevitably rise at an even greater rate than investors are already enjoying today. Property investment is expected to increase not only on the seaside tourist resorts, but also in cities such as Cairo, where a huge shortage of accommodation continues to be a problem waiting to be addressed. Significant improvement to the domestic economic environment increased investors’ confidence in Egypt.
Egypt investment growth shows exceptional potential as an emerging property market due to a strong economic climate that actively encourages growth in private investment. Below you will find out why property investors find Egypt an ideal market Egypt has long been a popular travel destination.
Today, due to encouraging economic trends, the property market in Egypt is becoming more popular as a location amongst worldwide purchasers and recent years have seen a growth rate of an encouraging 20-30% per annum in some key locations. Property investment in Egypt, as in many emerging markets, relies heavily on the success of Egypt’s ever increasing tourism industry. Beautiful, well established tourist hotspots are already in existence, particularly along the Red and Mediterranean Sea coasts and cater for a wide variety of modern tourist requirements, from excellent diving and snorkeling, five star hotels and golf courses to cultural and historical activities. New off-plan opportunities from heavy weight international developers are now springing up, attracting overseas investors looking for a secure investment with good growth potential at rock bottom prices.
Due to increased tourist numbers, these buyers are also safe in the knowledge there will be a strong market for their investment. Furthermore, the imminent opening of the newly modernized Cairo international airport in early 2007 is set to bring a new influx of visitors to complement Egypt’s new look 21st century tourist industry.
Due to recently reforms to streamline purchasing procedures in Egypt, the country now attracts more overseas property purchasers than ever before. This can also be put down to its relatively simple purchase system with lower taxes than in many other countries and no capital gains or inheritance tax.
Predictions Based on a steady increase in investments in the tourist sector and a resulting surge in visitor numbers, Egypt offers promising growth potential to all types of investors, while some areas of the Red and Mediterranean Sea coasts as well as certain areas of Cairo and Alexandria, are currently attracting as much as 25% annual capital growth. Investment in Egyptian property is offering great opportunities for purchasers while it waits during the infancy of an exciting emerging market.
Rental income from Egypt based property is of great interest to investors as high rental yields are already achievable from property located in the current tourist hot spots. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved. A fantastic year-round climate attracts a reliable tourist trade throughout the year.
The Capital Market Index posted a modest gain of 190 points in 2003/2004 before accelerating in July 2004 to climb 860 points over the next twelve months. According to the CBE, total market capitalization stood at EGP 172.9 billion in June 2004. A year later, market capitalization had doubled to EGP 337.1 billion
Egypt is a democratic country operating under Multi Party and Semi-Presidential system which splits the power between the president and the appointed prime minister. President Mubarak proposed an amendment to the Egyptian constitution that would allow multi-candidate presidential elections for the first time in February 2005 in order to increase the democratic climate in the country. Egypt was the first Arab country to establish diplomatic relations with Israel. Egypt also has a major role among all the Arab countries and play i mportant role as a mediator for any problems among the Arab countries. Egypt has a perfect relation to USA and EU in different fields. The political life is totally staple in Egypt and people live in piece
Visas are required for entry to Egypt. USA and EU nationalities traveling to Hurghada, Sharm EL Shik, Dahab, Newiba and taba for up to30 days receive a free visa stamp in their passport upon arrival also can be renewed easy for another 30 days easy. If flying to Hurghada or Cairo you can expect to pay 20 $ for your visa on arrival.
Tourist visas in Egypt can often be obtained in airports upon arrival in Egypt for citizens of most countries. Otherwise a visa will be required as a work visa for renewable periods of 12 month.
All indications show that property in Egypt is now a highly beneficial market in which to invest. While the tourist infrastructure and economic climate is constantly improving in Egypt, we would urge investors to catch this market at the very beginning, while prices remain incredibly low and high returns on investment.
Lincom Real Estate offers comprehensive source of information regarding the newest land investment opportunities available in Egypt. We are always careful to source you the best land investments in Egypt.
Our clients can receive valuable assistance and contacts in the setting up of joint ventures in Egypt. All developers or partners are carefully vetted by us before they join. Due to the a boom in worldwide property investment in general, Lincom Real Estate is in constant contact with a growing number of developers and investors, as well as investment consortiums, all of whom are constantly on the look out for the best land investment options in Egypt.
As the platform real estate investment search site, Lincom Real Estate Jsc. is a fully integrated real estate investment, recognized in Egypt by industry leaders as the leading real estate network in Egypt known for providing the fastest and best services for those who are interested in Real Estate investment projects and property services. Our extensive list of investment opportunities and properties including apartment, villa, plot of land, building, hotel or new development for sale enables you to search and browse unique properties from across Hurghada, El Gouna, Sahl Hasheesh, Marsa Alam, Sharm El Sheikh, Red Sea Coast, Luxor, Aswan, Cairo, Alexandria and all over Egypt.
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