Egyptian Property Investment Shaping up as No Brainer

Egyptian property prices grew 5% in the first quarter of this year according to some local estate agents, reports the Global Property Guide. The prediction is that property prices in Egypt will grow 10% this year, as growing domestic demand meets international investment and holiday home purchases to grow the market by 14% overall.

Fuelling the growth is:

Robust economic growth: after falling from the growth of 7.2% in the 2007/08 fiscal year, to 4.7% in the 2008/09 fiscal year, the Egyptian economy grew 5.3% in the fiscal year ending June 2010. The prediction for this year is for a growth of 6%.

New construction: Egypt’s continued growth during the international crisis has made it very big on the radar of international developers and investors. There have been many major developments announced by private parties and the Egyptian government in the last 18 months.

Stable banking system: much like Turkey and many other countries; Egypts underdeveloped mortgage market has now presented as a blessing in disguise. Now free of contamination from the volume of international bad loans, the Egyptian banking system is now healthy and mortgage lending is able to grow at the rate you’d expect for such a vibrant emerging market.

Growing domestic demand: the massive economic growth, as well as the growth shifting from agriculture to services, which means increased migration from rural areas to the cities, is generating significant domestic property demand.

This is why Egypt property is shaping up as such a no brainer for holiday home investors; because you can invest in a five star beachfront resort with guaranteed rental from as little as £39,000. The worst that can happen is you will be left with a luxury apartment near a sun-soaked beach for you and your family and friends to enjoy.