Oversupply of beds in Eygpt?

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vix

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I think its back to the old saying' each to his own'. Having bought solely for personal use, it doesn't matter to me who my neighbours are, or what facilities are available, its intended as a bolt hole and something to pass on. And yes, I do believe a lot of Gulf residents will buy, the prefered choice was the Lebenon for many, but those days have now passed. Whilst there, I did notice that the majority of people where Polish.
 
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James Barnett

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Just to but in and add my twopenneth (showing my age now ;)),why do we assume that buyers in the region are predominantly British/Irish. What about the Gulf, Russia and the rest of Europe. I think we came into the picture later than a lot of these other places.

Hi James by the way! I was always putting my foot into it when I first started posting on the forum. I've found that the emoticons help!!!
yes i think they do help and i agree with what niel says about location but some times you need more than that to asure you can resale. The development i have seen is set back from the beach in El kawser but it intrests me because it isnt to touristy and it will always be the inexpensive 2 bed option which always sells so for investment which is realy all im intrested in thats a good option. :) With regards to the other investors i wasnt aware of other countries that were buying property in egypt in any great number like us so thats new to me.
 
NeilHollingsworth

NeilHollingsworth

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yes i think they do help and i agree with what niel says about location but some times you need more than that to asure you can resale. The development i have seen is set back from the beach in El kawser but it intrests me because it isnt to touristy and it will always be the inexpensive 2 bed option which always sells so for investment which is realy all im intrested in thats a good option. :) With regards to the other investors i wasnt aware of other countries that were buying property in egypt in any great number like us so thats new to me.
Out of interest what are the prices, because you can get 2 beds relativley cheap in the heart of the tourist areas and also on the outskirts towards El Gouna?
 
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vix

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I think at the end of the day James, you have to go with your gut instinct.
 
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James Barnett

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Out of interest what are the prices, because you can get 2 beds relativley cheap in the heart of the tourist areas and also on the outskirts towards El Gouna?
well i was told 25k but now its 27 aparantly but not many people seem to have heard of it and thats a little worrying but aparently its the same developer as hurghada dreams which is very well heard of:)
 
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Lsab

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Hi Vix - my comment was directed at James original post about UK buyers. I've lived too long in countries where I'm in a minority to care about where my neighbours are from!! As long as they don't make too much noise, I'm happy.:D
 
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rossantony

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over supply in touristic areas V coastal growth

Having grown up in Jersey, and lived in Mallorca and Bournemouth I have witnessed at first hand the rapid rise in coastal resorts transforming themselves into more diverse economies. In fact my interest in this subject led me to Alicante University to study for a degree in Maritime Science, where I learnt much about the human impact on coastal areas.

There will always be a time when a market becomes saturated, unless the local, regional and national governments put a curb on developments. A saturated market does not necessarily mean that property values will fall, but more that the region has reached its natural limit. What investors need is that the region and those in charge to then limit over development.

Unfortunately in the past in certain areas of countries like Spain, for example, this failed to happen. There was too much temptation for interested parties to close their eyes, and take the envelope.

The fact about Egypt, or to be more concise, the red sea region, is that beyond the beach there is nothing but desert, so obviously, the growth will be limited to the coastal area. So Egypt has a rather large natural barrier to over development...the baking hot desert.

In touristic areas, the front line areas, will always hold the most appeal. The human appetite for a place by the sea is pretty universal. Although there are large amounts of beach front areas that could be developed, it is our instinct to cluster..we all need shops, bars, airports, hospitals, and other people to help us enjoy life.

This need for others, the nature of the Egyptian landscape, and the massive amount of space available should help restrict growth to acceptable levels.

In Hurghada, for example, there is a lot of development going on. However if you go to the property for sale section, you will notice that the amount of developments for tourism is relatively limited. I have never counted but I could guess us agents have well under 50 developments to choose from. There is obviously much more than 50 developments going on here in Hurghada! So who are they for? Egyptians! Hurghada is a boom town, being fuelled by foreign investment, but also by growth in Egpyt due to economic and political reforms.

Rising raw material costs, combined with rapid growth in GDP (7% last year) in Egypt are forcing the prices upwards. I believe the secondry market in Egypt, will be in selling back to the Egyptians. The front line will attract the wealthy and the middle class, looking for escape from Cairo, and the cheaper units further back will be for the new working class who are flooding into the area.

This escape from Cairo will not be limited to Egyptian tourism, but more likely will be a flight from pollution, and overcrowding to an area of new business opportunities in a more liberal environment. Also one should not overlook the lack of places to live in Egypt, beyond Cairo, Luxor, Sharm and Alexandria. This makes Hurghada, and the other new towns, very attractive places to live to the average Egyptian. Take a walk down Village Road, Hurghada on a thursday night too see what I mean.

A final important factor in the growth of touristic resorts in Egypt, is the need for business ventures to have Egyptian staff, thus including the local population into the redistribution of wealth.

My point here is that we agents, investors, speculators, and tourists are certainly the catalyst for growth, but Egpyt and the Red Sea has probably reached, or will reach a point where it can survive without us.

regards
 
Georgina

Georgina

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This escape from Cairo will not be limited to Egyptian tourism, but more likely will be a flight from pollution, and overcrowding to an area of new business opportunities in a more liberal environment.
El Gouna has changed a lot in the last 15 years. Originally it was rich Egyptians from Cairo buying up the villas probably for around 20,000 GBP. Then the real estate guys realised Europeans were going to spend more money. These Egyptian villa owners still live in Cairo. They visit El Gouna occasionally and yes a lot would love to live here all the time and many of them are bouncing off business ideas but very few have made the move. I look out over many such villas that I could count on one hand the number of times they are occupied each year. They just sit in the dark the rest of the year but obviously rising rapidly in value and filling with sand. This is why El Gouna can appear quiet. All inclusive hotels and property that is owned by Egyptians in Cairo or Europeans not living here. Come the Egyptian feasts then it is a different story. The whole place is full and all the villa owners throw wonderful parties :)

What I often wonder about especially when you see all along the Red Sea coast the massive amount of construction and plans from scratch to start whole new towns like Gamsha Bay, and driving into Sahl Hasheesh and trying to count all the new palm trees is where will all the water come from? How come in England they have hose pipe bans as soon as the rain stops yet we never get water shortages (apart from my friends road before Calimera Hotel who says the water goes to El Gouna first and sometimes they don't get any). OK the palm trees are watered with recycled sewage water. Have you ever watched an Egyptian wash the dishes? They just keep the tap running the whole time. When I ask them about conserving water they just say that water is cheap.

OK I am going off subject from too many beds to not enough water but does it mainly come along that pipe that runs along the road to Cairo?!?
 
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