Egypt Is Top of Many Property Investors’ Lists

Interest in property in Egypt is currently growing at a phenomenal rate, and it is second only to Saudi Arabia in terms of foreign property investment. Although it suffered a two-year slowdown due to the global downturn prices have started to recover and rents are rising once more. New building projects are underway to cope with the rising demand.

It has a major advantage over Saudi Arabia as it is highly affordable especially when compared to Dubai, as it’s possible to get four or five times the space in Egypt as you would for the same money in Dubai. In addition the Egyptian government is very interested in attracting foreign investors and is working hard to promote trust and to improve transparency in property transactions.

Part of the reason for this property boom is due to Middle Eastern investors doubling their investments in the previous year, and is also partly due to people from rural communities wishing to move into the bigger cities. Cairo is particularly popular and many newlyweds who have moved to the city are looking to rent property. This is because the city is attracting a large number of corporate companies which are looking to capitalise on emerging market conditions and which are creating job opportunities.

Yields in Egypt can be as high as 12 to 15% which compares very favourably with Eastern Europe where yields are currently between five and 6%. Whereas in the past property development was focusing on the luxury end of the market, the need for more affordable housing has now been recognised, and this kind of housing should present attractive rental opportunities to locals who cannot yet afford to buy their own home.

Join The Conversation - Be The First To Comment

Categories: Investment Property Strategy / Property Invest

Tags:

Like What You Read? Stay In Touch

Follow Colordarcy on Twitter or Facebook