Egypt in Early Stages of Real Estate Boom

Liverpool, Merseyside United Kingdom (PressExposure) June 07, 2011 -- According to experts, Egypt is in the early stages of a real estate boom. Business Monitor International, research shows capital values and rents rising, but yields falling, indicating that prices are rising faster than rents.

The body also said that commercial supply is increasing, but that this is only in response to years of underdevelopment, which is now presenting investors with great opportunities to build portfolios in the country. The rise in supply is, they say being met by rising demand from Western multinationals and Middle Eastern companies relocating to Egypt.

"The result is that conditions are dynamic. Vacancy rates vary, but are generally low or falling. Looking ahead, we expect that the optimism of protagonists in the office and retail sub-sectors will be justified. There should be a double-digit increase in rentals in these sub-sectors in 2011; further - if smaller - rises are likely in the following years," the report stated, adding that capital values will rise more significantly than rentals and the general downward trend in yields will continue," said the report.

As we have seen in other markets, commercial sector growth drives residential sector growth, often faster than tourism or any other factor. Shops, offices, factories, construction companies all need staff. Staff coming into the country buy or rent places to stay, and the locals can see their incomes rise sufficiently that they are also able to leave their accommodation and buy or rent somewhere new. With tourism growth already driving growth in Egyptian property, commercial growth can only be a massive boost.

Property in resorts such as Hurghada offer property starting from as little as £6,500 for a studio apartment. Despite the recent revolution back in January 2011 interest appear to still be strong with agents reporting strong interest in buying property in Egypt.

Apart from low entry level prices available in Egyptian real estate there is also the attraction of year round sunshine which is attracting many buyers right now.

For those clients with bigger budgets there are also the exclusive resorts of El Gouna with it's stunning harbour which attracts the rich and famous alike.

Another stunning location is the new resort of Sahl Hasheesh which offers 5 star luxury.

Recently, ERC - the master developer of Sahl Hasheesh - released their Q2 earnings with an attendant press release, which I have attached for your information.

The release makes for very interesting reading. If you don't want to wade through it all, let me give you a few edited highlights:

· ERC is an incredibly profitable company - even at this early stage in Sahl's development

· There is plenty of interest in sub-developers wanting to purchase plots on Phase III of the project

· ERC very carefully vets the backgrounds, finances and business plans before sub-developers are allowed to be part of the project - giving an extra degree of security for clients

· No sub-developers are in default on their land payments

· The Old Town really will be launched in November, with a significant amount of space already let on a long-term basis

· ERC are (finally) going to embark on a major international PR and marketing campaign designed to really put Sahl on the map.

About Azure Overseas Property Limited

Frank Crowley
Azure Overseas Ltd

Press Release Source:

Press Release Submitted On: June 07, 2011 at 8:14 am
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