Overseas Real Estate Blog

We regard Egypt as offering superior ‘relative value’ to the international property
investor for a number of reasons:

• With strong economic fundamentals and political and economic reform well-underway, long term prospects for the economy are very good. The Government has streamlined the property ownership process for overseas investors and is actively seeking inward investment, thus providing favourable conditions now for property investment by foreign nationals.

Wider availability of mortgages for foreigners (which carry 0% tax on interest) will add liquidity to the market, and there is no inheritance, income or capital gains tax for overseas investors in Egypt. Furthermore, investment entry points are low and projected yields are high.

• Egypt is at the beginning of an expansionary cycle, in contrast to many property investment markets. In Spain, for example prices, on the coastal regions have been falling****, while Florida has been hit-hard by the recent ‘credit crunch’*****. Property markets in other less established
areas eg Dubai, Bulgaria, Croatia have already attracted significant foreign investment, so investors seeking aggressive capital growth opportunities are looking further afield. As well as the obvious buoyancy of the underlying economy in Egypt, the fact that the country has historically under-exploited its role as a major tourism centre suggests there is substantial value currently in Egyptian real estate related to the tourist markets. Growth in European tourist traffic will have the effect of driving short-term rents (and therefore yields) higher. This effect is likely to be particularly pronounced in the Red Sea Region, where there are plans for
a major new international airport at Ain Soukhna.

• Indeed, Egypt’s year round sunshine, relative proximity to Europe, low crime rate and rapidly improving infrastructure will in our view see it emerge as one of the world’s major tourist destinations over the next few years. Finally, we feel property prices in Egypt should benefit from petro-dollars: Gulf investors (who often have a preference for assets in the Middle East) are increasingly likely to be attracted to Egypt’s strong fundamentals, and the fact it welcomes foreign investment.

* International Monetary Fund Statistics, 2006
** International Monetary Fund Statistics, 2006
*** International Monetary Fund Statistics, 2006
**** Financial Times, 30-09-07
***** Financial Times 30-09-07

The Deal:

Its always good to be first with an offer that is very much in the vain of buy2let or, as I would say, "jet2let" investment. With prices from just £26,000 up to £52,000 you can invest in an existing building which will be refurbished. This suits many who do not want to be concerned about the financil viability of a builder or developer.

Tranquilla Town is on Sheraton Street right where the fast growing numbers of local workers wish to live. This population is growing fast with the growth in tourism in Hurghada and also the growth in general business activities. Lawyers, accountants, doctors from Cairo and Luxor are in need of accommodation in this area.

In addition there are those involved in the Hotel and Hospitality industry and of course the huge diving and boat trip industry. Final there are those expatriates involved in the fast growing real estate industry who need accommodation. Sales people from UK, Germany, Russia, Italy and elsewhere. All of these people arriving have pushed up property prices and rentals.

All monies held in escrow account at UK lawyers until title transfer. You pay 90% of the price and get title. The final 10% is paid when the refurbishment is complete (within 6 months).

All you need to buy is appliances and furniture and packs will be offered for around £2,500.

Just £1,000 refundable reservation fee will reserve your unit in this building of 53 apartments.


For further details on Tranquilla Town contact Jet2Let Property Ltd
Tel: 0044(0)113 3131000