Egypt may seem like an exceptionally unusual choice as a location in which to invest in real estate sure, its a great vacation location with its 7,000 years of history, its near perfect year round climate, stunning beaches and beautiful divingbut what does it have to offer someone wanting to invest in real estate as a commodity?
The answer is Egypt is actually fast moving from being an emerging real estate market place to a well established one because the levels of foreign direct investment into the real estate sector have increased based on some excellent fundamentals.
For example, Egypt is now considered to be a politically stable country and one that is absolutely pro-western, meaning that an investor can be confident in the political stability, will and vision of the nation. Next up, the economy in Egypt is going from strength to strength. According to The Economist magazine GDP grew by 5% in 2005, almost 7% in 2006 and is on target for over 7% growth in 2007.
A strong economy gives confidence to investors as well but it also means local people have more buying power which creates the perfect environment for house prices to rise in value and an investors real estate assets to appreciate.
Aside from these excellent foundations on which an investor can build confidence there are some travel and tourism angles you might like to consider when thinking about whether Egypt is worth a closer look as a place to invest your hard earned dollars into immovable property.
First up theres excellent statistical news and data from the World Travel and Tourism Council, they say Egypt is on track for enjoying 21.4 billion US dollars worth of economic activity from the tourism market in 2007 and that the nations travel and tourism growth rate is expected to hit almost 8% this year before averaging around 5 and a half % per annum until 2017.
Clearly there will be massive rental demand for accommodation that a property investor who buys well located real estate can benefit from. Boosting this demand is Egypts exceptional climate and the fact the nation is now cheaply and swiftly accessible from Europe and the UK thanks to cheap flight operators.
Finally, if you want more reasons why to buy real estate in Egypt think about the fact there are no capital gains or death/inheritance taxes in Egypt and the government has now made it easy and safe for foreign buyers to own a home or multiple real estate assets in Egypt and surely you have enough evidence to support taking a closer look at the Egyptian property market.
Rhiannon Williamson writes about property investment worldwide,
Wednesday, July 30, 2008
Another article on why you should buy in Egypt
Why buy real estate in Egypt