Egypt

Egypt is one of the most popular tourist destinations in the world, with the Great Pyramids of Giza and the Valley of the Kings among the world's premier visitor attractions.

As a result the country has a burgeoning buy-to-let and holiday home market.

Key areas for investors are located along the Red and Mediterranean Sea coasts, as well as the key ancient tourist attractions and the cities of Cairo and Alexandria.

The country has also introduced a number of measures to liberalise its economy in recent years, and a great deal has changed.

The country has shed its negative reputation and is now considered to be "an astute nation working hard to attract investment, to boost the economy and the prospects of the local people," according to analysts AmberLamb.com.

River Nile

The vast majority of Egypt's 70 million plus population live along the banks of the River Nile, with only a handful living in the sparsely populated nomadic areas in the Sahara desert.

As such the property market in the country is located in similar areas, particularly in the capital city Cairo, as well as other urban areas such as Alexandria and around tourist hotspots.

On the north coast investment is concentrated between Alexandria and El Alamein, with Ain Soukhna developing a particularly strong reputation. The area is a little over an hour's drive from the capital, and has distinct long-term buy-to-let possibilities.

In contrast the city of Sharm el-Sheikh, on the tip of the Sinai Peninsular is already a firm tourist favourite.

Property in the region can be up to four times the price of other resorts, but this is still is markedly cheaper than property of equal caliber in the west.

The property market is also developing well around the capital Cairo, and the cities of Alexandria and Luxor. These are the most populous regions of the country and can suffer from a lack of accommodation.

As such, luxury property in these areas is usually in high demand and can be a rewarding investment.

However, the city of Cairo is earthquake prone, and it is important to check the building methods and structural integrity of a property – and neighbouring properties - before making a purchase.

Investment

Egypt is still very much an emerging property investment destination.

Just 2,000 properties were purchased by overseas buyers in 2006, according to WorldofProperty.co.uk, however the figure is expected to double in 2007 and reach 10,000 by 2010.

Property prices begin at around £25,000 - £30,000 for a starter apartment in an up-and-coming area, but can increase rapidly in cities or top-end costal resorts.

However, there are many attractions for investors. Capital appreciation can reach levels of between 20 and 30 per cent annually in key areas, according to PropertySecrets.com.

There is also no capital gains tax payable on the sale of a property, and this is coupled to a low stamp duty in the country.

Living costs in most of Egypt are also substantially lower than in the UK, the country has several airports with access to many European locations. A journey from the UK takes around five hours.

English is widely spoken and is second only to Arabic in terms of usage.

However, the Egyptian land registry can be out of date and it is important to ascertain the correct owner of a property before making a purchase.

Yet, despite this, the country appears to be growing in popularity, with the number of searches for property in Egypt on RightmoveOverseas.co.uk increasing 127 per cent year-on-year in September.