A growing economy, investor incentives, and superb holiday property at low prices, makes Egypt a tempting market for many investors. The Red Sea Coast offers a promising real estate market still in its infancy which is expected to spur on tourism, in line with government targets.
Egypt’s economy has taken off in the last few years, mainly due to new government initiatives and a clear insight into the benefits of foreign investment. Legislation passed in 2004 now makes it possible for non-Egyptians to own, sell and let property freely. An annual GDP growth of 7%, the ongoing consolidation of the banking sector, and a reduction and simplification of both taxes and Customs tariffs, are all improving the prospects for Egypt as a promising investment location.
Attracting over 9 million tourists each year and with figures rising, Egypt enjoys year-round sunshine, warm turquoise waters, heavily populated by marine life, and plenty of historical sites. Red Sea resorts are now receiving more visitors than the more traditional destinations of Luxor and Aswan. According to Amani El Torgoman, general manager
and director of Tourism Operations at Travco Group, the country’s leading travel agency, “In the past, it used to be older people who go on Nile cruises to see antiquities, now it’s younger families who come for a beach holiday and may just take a day to see Luxor”. This is great news for investors, who saw increases of their coastal property stocks reach 101% in 2007.
In a press conference held in Sharm El Sheikh, Major General Hany Metwally, Governor of South Sinai, affirmed that the first 5-year plan to develop the Governorate – which began in 2006 and will end in 2011 – is aiming at executing President Mubarak’s program to build 20,000 housing units, and 239 touristic projects, in addition to establishing health, education and road projects, and providing numerous employment opportunities in all fields. He also announced that the establishment of an international airport in the Dahab and Nuweiba area will take place in order to revive the touristic investment in the Riviera.
Such prime locations in Egypt offer a strong second home resale market, particularly in the resort areas, as most overseas buyers are now seeking holiday or second home locations as lifestyle choices. Zuhair Garranah, Egypt’s Tourism Minister stated, “Our objective is to reach 14m tourists in 2011”. Likewise, Mr. Garranah aims to introduce product to attract high spenders and promote the country’s strength as a luxury destination that offers excellent golf, beaches, yachting, diving and shopping, amongst many other attractions.
