Overseas Real Estate Blog

Opportunities exist right now to get genuine under market value off plan property. Why? With less development finance available for developers, your agent should be working very closely with the best developers to get under market offers. Where? For example we at Jet2Let Property work very closely with reputable developers in Egypt and Cape Verde, to deliver to our investors a share in the development profit in return for a commitment to buy. We aim to get our early investors a bigger slice of the equity upside for early commitment.

The other advantage is that I believe that there is often is less risk is attached to developments that are under market priced, and therefore sell the quickest. One example we are promoting is in Egypt and Hania beach, Hurghada for example. This is a front line beach development of 171 apartments, mostly with sea views of which in just five weeks was over 50% reserved. One bedroom apartments still available from £42,000 (£700 per m2) and studios even less - but will be going up to over £900 per m2 soon as the developer can raise prices closer to those of other comparable developments, £950 plus.

How do you make comparisons for under market to other property offers? You should focus on property location, design, quality, facilities and rental potential. Due diligence is part of this process to ensure that the developer is reputable and that its not an under market offer that is "too good to be true". Caution should also be exercised when looking at comparable property, and these should include completed property prices as well as other off plan property offers. So a good mix of buyers from many different countries rather than overly dominant UK resorts because this removes reliance on one single country for resale interest.

Overall we are entering good bargain hunting time for well located and under market value property.