Overseas Real Estate Blog

Samra Bay, Hurghada offers possibly the best location along the Hurghada "Golden Mile" of Hurgada is launched today with 10% discount first 50 units ONLY Situated right next to 5 star hotels this development location is top pick. Completion Dec 2011 (approx).

SAMRA BAY Marina & Spa Resort with all facilities is for those who are looking for quality and front line. Yet its only 5 minutes to the airport meaning you can be from leaving UK an into your apartment realistically in around 5 hours. Beat that for 265 days of sunshine per year.

With 10% off the starting price of €1,250 per m2 to give €1,125 per m2 (or £892 per m2). This discount is only for the first 5o units. (studios 47m2, one bedrooms 75m2, and two bedroom 111m2)


The "Abrim Residence" is the first building to be offered:

10% discount of the purchase price for the first 50 purchase agreements
5% discount of the purchase price for the second 50 purchase agreements

Furthermore a generous payment structure will be available:

a) Studios and 1-bedroom apartments: 40% upon signature / 20% to 01.07.2009 / 40% upon delivery (scheduled approx. end of 2011)

b) 2-bedroom apartments: 30% upon signature / 20% to 01.07.2009 / 50% upon delivery (scheduled approx. end of 2011)

In addition up front payment of purchase price instalments before the above mentioned due dates will qualify for a discount of 7%.

(Example: Client pays the purchase price in one single payment = 7% on 60%) The purchase payments will be made through a trust account managed by a lawyer in Germany.

Once again, Samra Bay should be considered for those looking at Hurghada. Contact Jet2Let Property Ltd - +44(0)113 3131000 for more info or email, info@jet2letproperty.com

To come and view developer's previous quality our 7 day inspection trips start at £325 per person (subject to availability). Hurghada has received rave reviews from our clients. It feels safe, low cost of living, no capital gains tax in Egypt, no VAT. (Taxes and laws always subject to change).

All clients should employ a lawyer and conduct their own due diligence. Please read ten top tips for due diligence series.

Well its the front line question that we hear a lot about and on the face of it the answer is simple, front line. or is it? Before examining the issues my I recommend to check whether it really is front line. Without putting too fine a point on it, I have inspected sites which are called front line and they are not really. They have a road in front of them and then the beach.

Google Earth can help on this, but nothing beats a site visit to be sure.

This may be ok if you are sure there will not be anything built the other side .. but usually there is, or will be a building, so its not front line. The clue can often be spotted in the price... if it seems good value compared to the other front line developments then maybe there is something not right. It could be beach front line but there could be an electricity station next to it.. or a factory.

But is it all about a beach? Well frankly not in some resorts being close to the amenities of shops and restaurants may be highly desireable and then you have to apply town centre versus outskirts argument. All of a sudden its getting more complicated. Then of course you have to look at price. Jet2Let have Tranquilla Town a nine story refurbishment buy to let building in Hurghada town centre. With an expected rental of £400 per week on six or 12 month contracts you are looking at after management costs a pretty certain yield of 8%. This is th sort of deal that suits the non lifestyle buyers who views overseas property as a long term investment proposition and has little intention to visit -or is their second purchase in the country.

I will leave it to another time to talk about investment strategies, but those who invest in shares will be familiar with taking contrarion view. I like this view as it can often work well. Historically those with patience almost always are glad they were brave by buying whilst all around said that price will go continue to go lower and lower.

For example of a typical contrarion view right now would be buying several banking shares at these low prices because the credit squeeze will reduce competition and Banks will be set to restore their balance sheets after their rights issues. Enough of stock markets but the contrarion view is worth thinking about now that overseas property sales have slowed the current deal could well turn out to be very shrewd buys indeed.

Spo turning again to property, in most markets we have see price inflation on building materials (cement, steel) and in some of the emerging countries labour costs increasing significantly. I am also interested as to what local buyers are doing and why. The great thing at the moment is that the squeeze on mortgages means that the speculative element is much reduced - so look for where people are moving to - where are they needing to rent? Possibilities here are Istanbul with a huge population increase under way and even Hurghada in Egypt where a new population is moving to the coast for more than just tourist related activities.

Egypt's growth in tourism is such that local workers accommodation which include expats in real estate and tourism and Egyptian professionals covering legal, construction and media sectors. This is why we have secured a great deal on an existing building which already has tennants. Prices of £410 and £570 per m2 is really good value with minimal risk as the building is already built as of ten years ago and an after fees and costs yield of 8% means this is the sort of deal to be had there right now.

Please post your views on front line and taking a contrarion view.

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

Samra Bay will be one of the very best developments in new Hurghada and will be launched off plan in June. Located by the Grand Plaza, Intercontinental, Hilton and Steigenberger hotels the position is superb. Located on the beach front line and on the Esplanade pedestrianised area this area feels upmarket feel and very safe/

Many restaurants are springing up here as well as shops of all kinds. Frontline is getting scarce in Hurghada and we expect demand will be very high for Samra Bay as the developer finishes to a very high standard. There will be over 1,000 apartments and we therefore expect rental potential to be one of the best as it has only 5 star hotel as competition.

Viewing Trip Just £225 per person. Call 0044(0)113 3131000 to book now. In case you cant make it please see video of the site which will have a jetty for boats and safe swimming area.

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.