The Red Sea Riviera:the Time To Invest Is Now

Egypt and in particalar The Red Sea Riviera is proving a great place to invest in property. Recent government reforms changes in currency alignment and demand for holiday homes means it is now time to head to Egypt End Quote

With 365 days of sunshine a year, the length of the season can enable far higher rental yields than most European holiday locations

(1888PressRelease) September 03, 2007 - Overseas property investment has long been an excellent route to seeing phenomenal returns on investment capital. This is never truer than in emerging markets, which often bear witness to exceptional appreciation in relatively short time frames. Countries such as Northern Cyprus, Belize and some regions of Brazil are beginning to emerge as outstanding opportunities, but none more so than the Red Sea Riviera in Egypt.

Government reforms over recent years have proved significant in enabling greater foreign investment in the country. The cutting of property taxation costs and of interest rates is very positive for the overseas investor, as is the rising Egyptian GDP and the floating of the Egyptian Pound, which had previously been pegged against the US Dollar.

The Middle East is a popular investment market, with Dubai in particular seeing massive development and foreign investment, from which many buyers have profited. The movement of some of the major Dubai based developers to Egypt is a sign not to be missed. Whilst Sharm al-Sheikh, El Gouna and Hurghada have already seen growth, the savvy investor is looking to the major cities of Cairo and Alexandria, but in particular the Red Sea Riviera.

Julia Nash at Fairfax Investments explains, “the Red Sea region is definitely an area investors should be paying attention to. In particular the area between Ain Soukhna and Zafarana has been earmarked by the government for development, and some developments along this stretch offer unparalleled opportunities for return on investment”.

This area in particular has long been a favourite among Egyptian holiday home buyers who have enjoyed freehold ownership in this region, unlike places such as Sharm al-Sheikh. Smart developers have realised the asset that having Cairo within easy reaching distance and first class untouched diving sites would be to attracting the luxury tourist market.

Perhaps most interesting is that we are now beginning to see the emergence of mortgage options in Egypt for foreign investors. Although their recent availability currently means low LTVs combined with high double figure interest rates and a lengthy application process, inevitably the influence of competition will mean investors should soon be seeing Egyptian bank backed mortgages with better funding at better rates. This is will facilitate far greater interest and investment in Egyptian real estate resulting in rising house prices. As such, wise investors should be looking at investing soon and beating the mortgage crowd to opportunities in this wonderful country.

Whilst Egypt’s history has long ensured its place as a tourist destination, tourism statistics for the country are reaching record highs as visitors seek the excellent climate and the Red Sea, which is regarded as the premier diving site in the world. This has enabled Egypt to become the number one medium haul destination for European travellers. Location in this large and varied country is essential and should be carefully considered for any investment. Proximity to airports, as well as accessibility to a range of attractions will ensure a varied base of tourists.

In particular, the Zafarana area enables visitors to combine a Red Sea location with the Pyramids at Giza, Cairo, Hurghada and even Sharm-al-Sheikh within reaching distance, making this an attractive option for both investors and the second home markets, and with 2,500 units here from only €26,500 the market is definitely sitting up and taking notice.

With 365 days of sunshine a year, the length of the season can enable far higher rental yields than most European holiday locations, and with the sun shining on direct foreign investment, now is the time to grab yourself a bargain.

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