Egypt has been showing a strong property market. This is seen through property price growth margins that come with equally strong holiday and rental investment markets. Even the short-term and resale markets are being anticipated to perform just as well as the other markets. This was the predominant view by members although they have their own different opinions on how the resale market in Egypt would grow. Everything starts with a good investment. Egypt has inherent factors that are already making the thought of investing in the country ideal. As one member stated, Egypt has the following benefits that would cater to anyone who wish to invest in its property market:
- mortgage market in its infancy,
- planned increase in low-cost carrier flights,
- no CGT or inheritance tax,
- prices are still relatively low,
- healthy economic growth,
- stable economy,
- encouragement of foreign investments, and
- The development plan of a Dubai-based company to develop resorts in the Northern section of Hurghada and in Cario.
Of course, the diligence and research that an investor puts in his investment also spells the difference between the success and failure of the investment. Other factors such as the location, other developments within the area, competitive edge, prices, facilities, and the local market or buyers as well as other relevant issues should come into play when choosing an investment.
However, there are a few sentiments from members that should be highlighted. Discussions about Egypt’s resale market are actually early vindications since there are still many new developments that await handover to their owners. In addition, the resale market would most likely take off along with the pick up of the mortgage market. The lack of available credit has put a lid on prices and the improvement of financial opportunities that can provide better financial capabilities for both local and overseas buyers.
Hence, with the completion of most of the resort areas around the Red Sea Riviera, the attention has now shifted to Hurghada. This makes it Egypt’s newest property hotspot. In fact, there are several appealing factors that facilitated this shift of focus.
Foremost of these are the several property developments that are still on the way, thus providing an opportunity for the ownership of frontline (or very close to frontline) properties that can be bought off plan. Such properties are most likely no longer available in the other resort areas. Another huge attraction for properties in Hurghada is the granting of freehold titles for any property. This is unlike Sharm where leasehold titles are the only ones granted to its buyers. The relatively low prices, available mortgages, year-round rental season, and the low cost of living are all additional attractive features of the Hurghada property market.
Thus, the resale market of Hurghada is still in its early stages. With the unyielding demand for properties in the Red Sea Riviera resort areas, property prices are only expected to climb up in the next few years.