Egypt, the land of the Pharaohs is one of the most exciting countries in the world with an illustrious history, ancient monuments and a rich culture. Ever popular amongst tourists looking for a guaranteed sunshine, the warm clear waters of the Red Sea or the exotic atmosphere. Recently the country has become one of the hottest emerging markets with fantastic 5-star resorts offering superb opportunities with excellent potential capital gains and year round rentals.
Why Egypt?
After a brief dip in the number of visitors, tourists and investors are back again in greater numbers than ever, tempted by the fantastic year round climate, the palpable sense of history and an abundance of spectacular sights.
History buffs and Egyptologists will find Cairo hard to resist, with its obvious attractions of the magnificent Pyramids and Sphinx, the Valley of Kings in Luxor and Mount Sinai, however it the Red Sea coast which is proving to be the most popular destination for holiday makers and property investors alike.
The recent trend has seen tourists looking further than Europe to more exotic locations and with the advent of lower cost flights the Red Sea is closer than ever. Another major factor influencing the popularity of Egypt’s growing property market is the incredible value for money compared to Europe and the UK, the availability of 5-star standard resorts and a potentially lucrative year round rental market.
Tourism plays an important role in the Egyptian economy providing around 15% of the GNP. Accordingly, huge investment in infrastructure and marketing is planned in order to increase the momentum of interest within the country’s tourism and investment market. The Zuheir Garana, the Egyptian Tourism Minister stated that eight million tourists visited Egypt in 2005 and the number is predicted to rise by 5.7% each year by the World Travel and Tourism Council.
Although, the Red Sea resort of Sharm is still the most popular destination for holiday makers and has seen property investments realise up to 100% profits, it is the up-and-coming resort of Hurghada that the smart money is now looking towards for investment.
Why Hurghada?
The city of Hurghada, Al-Ghardaka in Arabic, dates back to the early twentieth century, covering an area stretching over 40km along the Red Sea coast until it meets the desert and boasting a population of over 40,000 inhabitants.
Until recently a small fishing village, today thanks to overseas investment, it has become one of the most popular destinations on the Red Sea.
Divided into three parts, El Dahar the old town where you will find the town’s largest and most colourful bazaar, bus station and post office, whilst Sekalla and El Korra Road have a more modern flavour.
However, this bustling town offers a vibrant selection of restaurants, bars, shops, internet cafes, hotels and lively nightlife, with many clubs where it is possible to sample some traditional belly dancing. Most of the hotels have their own nightclubs offering entertainment well into the small hours.
The region is also a gateway to diving sites on the Red Sea, which is known as an international centre for water sports, deep sea fishing, windsurfing, snorkeling and is famous for its unrivalled dive sites, displaying spectacular coral reefs and islands.
Desert safaris, golf and sizzling year round summer weather have made this a corner of North Africa a hotspot in every sense of the word. The area is easily accessible, served by the international airport at Hurghada, which receives direct flights from most European cities and there are also regular connections from Cairo.
Investment:
• Capital growth of 10% to 15%
• Low prices compared to European beachfront property
• Rental returns are estimated at approx 10% per annum
• Substantial investment of £1.800.000 (EGP 20.000.000) in infrastructure and
marketing are underway
• Tourism reached 8,600,000 in 2005
• Tourism is forecast to increase by 5.7% per annum until 2016
Tax:
• No wealth tax
• Since January 2006 there is no capital gains tax after 5 years
• No inheritance tax but a transfer registration tax
• Tax burden decreases for residents
• Rental income is subject to income tax rates on a sliding range 23% for the majority of investors
Facts:
• Italy is 4th most visited country in the world, over 40 million overseas visitors each year
• Ranked by UNICEF as the best country for families
• The university in Calabria is the oldest in Europe
• The Vatican has been an independent state since 1929
