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Why Invest in Egypt?

Egypt today offers a solid economic climate in which to invest. An emerging property market in key tourist locations is already offering excellent returns on investment and shrewd investors are eager to get involved, while prices remain stunningly low.

Economic Factors

  • Low cost of living and very low property prices.
  • Strong economic growth (GDP per capita in 2008 – $5,400 (135th place in the world)).
  • Government reforms and incentives for foreign investment, making the property investment process easier than ever before.
  • Strong growth in the tourist industry due to increased air services, modernization of amenities and luxury resorts under construction.

All indications show that investment property in Egypt is now a highly beneficial market in which to invest. While the tourist infrastructure and economic climate is constantly improving in Egypt, we would urge investors to catch this market at the very beginning, while prices remain incredibly low and high returns on investment are there for the taking.

Main Reasons Why Egypt is a Desirable Investment Location:

  • Low property prices starting at around only $800 per sq.m.
  • Steady year-on-year capital appreciation of between 20-30%.
  • Beautiful, well established tourist hotspots suitable for varied tourist interests, from excellent diving and snorkeling to cultural and historical locations.
  • Stunning natural, un spoilt landscapes.
  • Steady annual growth in tourist figures.
  • Less property taxes than paid in the UK.
  • No capital gains tax.
  • British residents avoid inheritance tax on any property in Egypt.
  • Foreign investors are regarded by the government as a big investment opportunity and laws have recently streamlined procedures, making the purchase procedure easy.
  • Strong economic growth and increased investment in infrastructure are boosting the property investment market as a whole.
  • Well renowned developers are creating luxury resorts to cater for Egypt’s new influx of international tourists.
  • Easy air access from many European destinations makes Egypt an ever popular medium haul holiday location.
  • Low cost of living and maintenance costs
  • English is widely spoken, after Arabic

Off-Plan Property in Egypt

We specialize in off-plan investment opportunities in Egypt. Below is an explanation of some of the reasons why off-plan property is highly beneficial to our investors.

  • Off-plan investment allows investors the important opportunity to buy at the lowest price possible and achieve maximum returns on investment.
  • If you keep your property for a longer period of time, excellent rental income can be achieved, while your property further appreciates in value.

 

The best investment in Egypt today is to be found in off-plan developments. With the introduction of new reforms, the government of Egypt has created an excellent climate for overseas investment in Egyptian property. A number of new luxury resorts are becoming a major source of interest amongst international property purchasers with a keen eye for a bargain. A growth rate of up to 30% being obtained in the main resorts is another obvious attraction.

It may be possible to purchase off-plan properties as these development projects are completed, but prices will be substantially higher as the original investor will already be pocketing his/her return on investment. The International Property Investment Network (IPIN) sources quality new investment opportunities in Egypt in areas that offer the greatest potential for capital appreciation. These opportunities are normally located in popular tourist areas that will allow investors to generate high rental returns.

Buying off-plan property in Egypt is a relatively easy process and allows you to purchase at the lowest possible price while taking advantage of the best possible finance options available.

How can property be cheaper if bought off-plan – How does it work?

Developers are always exposed to risk and it is clear they wish to cap this risk as quickly as possible and limit bank loans and other debts. They therefore sell off-plan units at excellent prices. Buyers are unable to see a physical property yet and must rely on the location and artist impressions, diagrams and computer simulations, and for this reason they expect a reduction in price.

Excellent finance structures are in place for off-plan purchasers, which are a valuable advantage to the off-plan strategy. Depending upon the project, the investor usually only needs to pay around 20-40% of the value of the purchase in the form of a deposit, while the rest is payable when the project is completed.

When you decide to invest in off-plan property in Egypt, you will need to choose an appropriate strategy to adopt to achieve a good return on investment. Our investment experts will gladly help you choose the most appropriate method and create you an investment plan, be it a “Pure Investment” or a “Buy-to-Let” strategy.

Maximizing Profit From an Off-Plan Investment in Egypt

  • Purchasing early

We cannot over-emphasize the importance of purchasing off-plan property as soon as possible within an emerging property market. Prices will be very competitive but rising fast. Investors who purchase early will always see the best returns.

  • Purchasing the best units

By purchasing early, shrewd investors also have the opportunity to purchase the most sought after properties on any given development. Due to demand, these units always offer the highest capital appreciation in the least amount of time and will command the greatest rental income.

  • Price increases as development matures

When construction begins on a given development, the value of the units begins to rise steadily. A completed show home is then available for viewing and buyers take on less risk as they now need not rely entirely on plans.

  • Price appreciates as more units sell

Buyers begin to purchase units while construction is in progress and as they sell, so the price of the remaining units rises steadily. A phase payment structure is often in operation which reflects the increasing value of the properties. To early investors, this means that should you decide to sell your property at this stage, it will be worth considerably more already than when you made your initial purchase and paid the 30% deposit.

Excellent investment choices can be made in this arena. We specialize in helping you select the best ones for your needs and generate personal wealth through safe and intelligent property investment in off-plan property as an investment vehicle.

Land and Property are possibly the only assets that can significantly be passed on through generations. Each generation getting value of ownership. As we have seen recently, money in the bank or pension scheme is sometimes not as safe as we thought. Providing ones property is owned and fully paid for or a payment scheme is being honoured, full Deeds of Entitlement are safe. To coin an old English phrase “As Safe as Houses”.

 

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