Overseas property buyers look to Egypt
Egypt is appearing on the radar of overseas buyers
Wednesday, 08, Mar 2006 09:03
The property market in Egypt is predicted to flourish over the next five years, according to experts.
At first, the North African country might seem like an unlikely destination in which to buy an overseas property, particularly when there are emerging markets closer to the UK.
But with flights now available for less than £300 and taking only five hours, the holiday home and property investment market is starting to take off.
Official figures show that the number of British visitors to Egypt has increased by a third since 2000, with 345,000 visits by Brits in 2004.
Most of these head to the Red Sea Riviera's main resort of Sharm El Sheikh, which has good infrastructure including both an airport and a modern hospital.
Others head to Marsa Alam, located near the Tropic of Cancer, which is an up-and-coming tourist destination that is becoming increasingly popular with residential buyers.
Jennette Bradbury, from Egypt property firm Egyptian Experience, said: "It is an emerging market and therefore in its infancy for overseas buyers but with the Egyptian government marketing Egypt for residential tourism this year, the profile of the property market will be raised yet further."
Nagi Azab of tour operator Pyramisa Egypt added: "We expect the property market in Egypt to build substantially over the next five years. The market is flourishing at the moment and has been for the past few years with capital growth exceeding 100 per cent in some areas such as the Red Sea Riviera."
Studios, villas, residential complexes and land suitable for development are among the property for sale in Sharm El Sheikh.
"You can buy an eco lodge on the Red Sea of 1,000 square feet furnished for around £30,000 or a golfing two bedroom apartment of around 1,500 square foot on the Red Sea near Hurghada will cost £120,000," said Ian Marsh of Think-Egypt.
"In Sharm El Sheikh, apartments will cost from £50,000 upwards whilst a villa in the Four Seasons resort would be £750,000."
Naturally there are pitfalls for buyers of overseas property in Egypt. Mr Marsh says the most common problem is with title deeds and urges buyers to contact a reputable lawyer to verify documents prior to committing to any contract or transaction.
"The property should be checked against any loans, debts and disputes, correct signatures and all relevant power of attorneys from the seller should be verified by the lawyer," he added.
"All contracts should be dual contracts in both Arabic and English and these should be translated to ensure the Arabic matches up with the English as in some cases it has been known to differ.
Overseas property purchasers would also be well advised to check foreign office travel advice before considering investing in Egypt. There is a high threat of terrorism in the country and in July last year over 80 people were killed in a bomb attack on Sharm El Sheikh.
Egyptian Experience, Think Egypt and Pyramisa Egypt will be among the firms exhibiting at the forthcoming homebuyer show.
For more information on the Homebuyer Show and other property exhibitions taking place in March, go to: March's property exhibitions