Buying A Property In Egypt

Despite recent problems, is exotic and alluring Egypt somewhere you should consider buying?

By Gordon Miller

Lying around four and a half hours' flying time from the UK, Egypt is in an increasingly accessible destination, especially since Easyjet began flying to the land of the pharaohs.

For history lovers, Egypt is, of course, famous as the home of the pyramids, the Valley of the Kings, Aswan, the site of the vast High Dam and the monumental ancient columns at Abu Simbel, and the sphinx, but one should also not overlook the contemporary aspects the nation has to offer. Shopping ranges in style from visiting camel markets and bazaars, to high-end luxury shopping in the designer boutiques of Cairo. The beaches at Sharm el-Sheikh and Hurghada are superb, and the world-class scuba diving in the Red Sea attracts thousands of divers to the resorts annually.

In terms of the nation's real estate, Egypt is an emerging market. A significant amount of new build construction is underway across the country and buyers need to consider which properties represent good value for money. For example, factor in the tourism aspect before settling on a resort and also look at the likely long-term development of a specific location in terms of its enhancement and growing desirability. It is worth noting that construction standards are not equal across all developments. Property prices are mostly at the budget end of the price bracket - with a few exceptions - but have more than doubled in many resorts between 2005 and 2008.

Looking forward, Egypt's property boom is certain to slow in the wake of the global financial tsunami but local demand for property is said to be high. Ahmad Ghozzi, Chairman and CEO of ACG-ITF, a property conference organiser, said, 'Egypt's real estate sector continues to perform well in contrast to those of other regional players which are struggling to cope with current market and economic conditions. There is still a large gap between supply and demand (around 350,000 units annually) which developers can capitalize on, especially in family centred projects. In addition, the general view towards the crisis is not as gloomy in this part of the world. Property owners and developers thus have a positive outlook on the industry's performance for this year.'