Egyptian Property Avoids The Crunch

The quest for the 'safest' overseas property investment in the current climate is one of the biggest questions at the moment. We take a look at how Egypt is avoiding the credit crunch and building for a prosperous future. Another approach, and one that looks like it might do well in the future, is that taken by Egypt. By concentrating on the quality of developments and preserving the integrity of the coastline of the Red Sea from over development, as well as diversifying where visitors to the country come from, Egypt should be well-placed to weather the storms other destinations in overseas property are finding hard to endure.

One of the biggest problems in some of the more traditional overseas property markets, many of which are experiencing problems in the current financial and economic situation, is that they rely heavily on visitors from one or two nations for both property sales and tourist visitor numbers. In this way, should the economy of that country take a turn downwards, or even if something as simple as flight prices increase, developers, agents, hotels and tour operators are left with capacity to fill.

Egypt has become one of the top year-round sunshine destinations for UK tourists, many of whom are attracted by the prospect of guaranteed winter sunshine within five hours of the UK. Egypt has, however, managed to extend its attraction to overseas visitors to France, Italy, Germany, Russia and Scandinavia. This flow of visitors, many of whom come back to the country numerous times, are then being attracted by the efforts of the Egyptian government to promote residential tourism in the key areas of the Red Sea Riviera. The strength in visitor numbers should mean that the country does not see too much of a drop in visits through the credit crunch, given that they come from such a wide selection of countries.

While the government is taking significant steps to facilitate residential tourism and attract overseas property buyers, it is not allowing free rein to the builders and speculators to pick and choose the best site without regard for the consequences. Government intervention has been concentrated on infrastructure, while planning restrictions have kept the supply of property down, thus boosting price growth.

The authorities in Egypt also seem to be learning from their own experiences in building tourist destinations, as well as the examples of other countries. The first resorts on the Red Sea coastline, Sharm el Sheikh, Hurghada and Dahab, while still being successful and promising destinations for the overseas property buyer, were created by a tourist industry that was feeling its way into the market. With new resorts, more urban planning and restrictions are in place, and infrastructure improvements are at the top of the list, ahead of bringing in money immediately.

One such new resort is Sahl Hasheesh, located around 20 minutes south of Hurghada. This new resort is designed to attract the higher end of the market, and already has in place a suite-only hotel and plans for some sumptuous residential developments. With a new marina aiming to attract the yachting and diving fraternity, and golf courses around Hurghada providing even more leisure facilities, the prospects for Sahl Hasheesh are rosy.

Source - PR Inside