Tourist Property Development Encouraged by Good Economic Growth
In Egypt the emerging real estate market is being built on on the tourism industry, the risk comes in the form of the nation’s once unsteady economic past, the positive fundamentals for growth are centred on tourism, accessibility and the increase in interest in Egypt as a second home location, and so far, everything is stacking up in Egypt’s favour, but can this positive situation last?
According to Steve Worboys, MD of property investment experts Experience International:
the relaxed definition of an ‘emerging market’ in property terms is a real estate market that has still to be tried and tested, where there is an element of risk hopefully offset by positive fundamentals for the potential of growth in terms of demand for property and the underlying value of land and real estate.
This possibly makes Egypt property one of the most promising emerging markets in the world then!
Taking the element of risk as the starting point for the analysis of whether Egypt will still be a positive property investment location, there has been a strong upsurge in the nation’s exports of oil and gas, revenues from the Suez Canal are soaring, and growth in the tourism industry which is booming.
This all adds up to one thing , a sustainably strengthening economy according to the International Monetary Fund, that has stated that “the Egyptian economy will continue to grow at 7-8 percent” making it one of the fastest growing in the Middle Eastern Region.
In terms of the property market in Egypt as it stands today, according to the nation’s Prime Minister, investment activity is up 40% that has helped increase foreign direct investment into the nation to over USD 10 billion.
One example of a massive new development about to be launched is Gamsha Bay Egypt
One of the world’s largest developers is investing an estimated US$16 billion to transform miles of the Red Sea coastline into a luxury resort paradise that will cover 320 million square meters and be the largest leisure resort in Egypt. The massive development is located about 37 miles along the coast north of Hurghada with good access by road from Cairo and the airports.
Taking into consideration the fundamentals required for ensuring that Egypt remains on track as a highly successful real estate investment location; one only has to look as far as the tourism industry.
Hurghada is a prime example of a small fishing township on the Red Sea coast that has now emerged into a thriving city and tourist hub of activity.
Hurghada Properties are very popular with both tourists and property investors alike and currently you can purchase a prime beach front property with excellent rental and capital gains potential for very reasonable prices of under £40K
For more information please visit www.experience-international.com