Egypt is predicted to become a top property investment for Brits buying, with house price growth of 20-30% predicted over the next year.
More tourists and overseas property buyers are attracted to the emerging market than ever before. Over the last two years, the property market rose 50% and the number of visitors increased 25% in 2005 to 2.5million.
In addition to the tourist-tempting sunshine, historical attractions, diving locations and low cost of living, Egypt offers investors low stamp duty and no capital gains tax.
The government has sought to lure non-native investment in the tourism sector by getting rid of barriers to investment while streamlining investment procedures for foreigners. This includes reforms to customs, income and corporate tax as well as strengthening the liquidity of currency. Laws continue to be revisited to enhance the investment climate.
The government’s commitments make any investment less risky by improving the country’s economy and creating more opportunity for personal wealth.
The most popular investment area is the Red Sea Coast’s Sharm El Sheik, where average rental yields for short-term rental accommodation can reach up to 11%.
The country has experienced strong economic growth over recent years, with a 4.5% growth in GDP in 2005.
As an emerging market, property prices in Egypt remain low, though Experts say that the property market is on the brink of a boom.
