Hartlepool, United Kingdom (PressExposure) July 17, 2009 -- Egyptian property is most definitely one of my hot-tips for property investment. You can currently buy a 2 bedroom apartment in Hurghada for Â£14,000, yet Egypt has the potential for massive economic growth and growth in tourism.
Egypt's economy is primarily based on agricultural exports from the rich fertile Nile Valley and the export of Natural Gas, there are also the tariffs from operating the Suez Canal, and tourism is rising massively.
The government of Anwar EL-SADAT opened up the country to foreign investment, and current President Mohamed Hosni MUBARAK has continued to make moves to attract further inflows of foreign direct investment. Their efforts have overseen Egyptian economic growth averaging 7% per year since 2006.
Even now, during an international recession that we haven't seen the likes of since World War II, the Egyptian economy is looking set to see some impressive growth this year. The Egypt-based investment bank, HC Securities and Investment has forecast that Egypt's economy will grow 3.5% this year (fiscal year ending June 2010), following 4.5% growth last year. The International Monetary fund forecasts growth of 3.6% this year, and 3% next year.
As yet the government has focussed only on growth rather than distribution of wealth but this is slowly starting to change. As more of the Egyptian population takes up employment in a growing economy, demand will rise for housing and property in the country, as well as demand for second homes for the better-off. Also a growing economy and growing internal wealth means price inflation, and as the cost of building materials increases this also puts upward pressure on property prices.
From their current level, and with all that going for it, Egypt property prices can only go in one direction. Rental yields are also impressive, I calculated a gross rental yield of 25% based on 10 weeks occupancy at the going rate in Hurghada Â£385.00. Of course you have to take taxes out of that as well as any costs from marketing and the general upkeep of the property.