Why We Are So Fired Up About Egypt Property

Because we see the massive tourist growth being recorded in Egypt (20-25% per year according to ABTA), and we see the fantastic value for money on offer in places like Hurghada, Sharm el-Sheik and Sahl Hasheesh, that comes largely from the fact that property prices are among the lowest in the world. It is easy for us to say that the Egypt property market has a very bright future as though it is a foregone conclusion.

There is no doubt in our mind; for us it is a foregone conclusion. However, not everyone has immersed themselves in the reasons why property markets grow as we have for the last several years.

The fact of the matter is though, when you analyse the property markets in the places mentioned above, you really can only come to one conclusion and that is growth.

It is a common tale.

We have Egypt, a former third world country, previously reliant on agriculture. Then we have the advent of the internet and the budget airline, and the global outsourcing boom, which revolutionised the global economy.

This rapidly accelerated tourism to Egypt, and also brought massive growth to the services sector, including outsourcing and aviation. All this triggered a wave of mass migration as people move from the rural areas into the cities.

The result of all this is booming growth in the commercial property sector within Egypt, and rising affluence of the population.

Lest we not forget that Egypt has a warm climate year round, great beaches and plenty of things to see and do. When budget airlines sprang up tourism began to accelerate rapidly, and anyone could see the opportunity to earn massive rental yields on Egypt property, because of the low prices.

Hurghada, Sharm el-Sheikh and Sahl Hasheesh have emerged as particularly special opportunities in this respect, because the property markets have developed hand in hand with growing tourist demand. Thus, investors are buying straight into units that will become part of the mainstream tourist accommodation.

That, in a nutshell is why we in the overseas property industry are so fired up about Egypt property.

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