Overseas Real Estate Blog

Today I have been speaking to the MD of the UK developer of Hania Beach. Delighted that I have had confirmation that some important finish details such as branded bathrooms with decent showers and quality tiles that I submitted to the developer have actually been incorporated. Final plans due soon and images in a few weeks. Due diligence completed here and satisfied developer owns land etc. As always our clients always use a lawyer to verify ownership and for due diligence.

The investor and buyers response to Hania Beach, front line has been superb. Priced right now at 30% less than competing developments. 125 apartments on reservation (refundable reservation fee) out of 171 apartments and t specification is going to be top notch here. This would be a good buy at £1,000 per m2 but at £700 it a steal. Price goes up to £800 soon and £850 in a around a month. Final sell price will be £1,150 - if there are any left of course.

The policy of pricing to sell gives comfort to both the buyer and the developer alike and is just what is required to make and a successful development.

However this is only part of the story an excellent development requires a strong rental demand giving investors a growing rental return. Again this is where so far matters are looking good for Hania Beach with a company already appointed to manage tour operator rentals and most importantly to actively promote the development to the travel companies.

Overall the image of the Egyptian Riviera is changing fast from a destination of specialist and marginal appeal only a few years ago to one that is being advertised as a mainstream high quality and value destination. Easyjet now flying there is yet another part of the jigsaw which will I think will stimulate further interest from both travelers and property investors alike. I expect to see more flights added over the next 12 months as existing flights are very full.

The cost comparisons with Spain are that property here, like for like, is less than a third of Spanish prices. One investor said to me that even in todays market he could not find front line Spain at less than £350,000. This value is further enhance if you consider that the peak rental periods of Christmas, New Year, February school half term, Easter, May school half term, October school half term are all peak rental seasons but mainly low rental season in Spain so opportunity for high rentals in these peak periods exceeds the typical Spanish Costa destination.