Property in Egypt set to be top investment

Overseas homes in Egypt are set to be a top property investment for Brits in 2007, experts are predicting.

Egyptian property experts at the Homebuyer Show note house prices rose 50 per cent over the last two years, with 20 per cent growth predicted for 2007.

The country is also experiencing a tourism boom, with the number of visitors going up 25 per cent from 2005 to 2006.

Other factors that make investing in property in Egypt attractive include the sunny weather, the many historical attractions, highly rated diving locations and resorts, and average rental yields of 11 per cent in tourist areas.

Investors also benefit from low rates of stamp duty, death succession duty at seven per cent and no capital gains tax.

"We expect the property market in Egypt to grow substantially in the next few years," commented Jennette Bradbury, Egyptian Experience managing director.

"After many years of economic reform the area is ripe for investment. With record levels of tourism, the property market in Egypt offers excellent investment returns, from both rental yields and property price rises."

The most popular property investment area in Egypt is the Red Sea coast, in particular Sharm El Sheikh.

The area also has the added benefit of planning laws against high-rise, high-density developments, in Sharm El Sheikh only 20 per cent of a plot of land can be built on and properties are limited to three stories.