Historically known for the Great Pyramids, the Nile River and the land of the Pharaohs, Egypt is now the second most populous country in Africa and one of the world’s fastest growing economies. In recent years, Egypt has become a new property hotspot gaining much interest from foreign property investors. Whether it’s purely an investment property, a holiday home, or a retirement home, Egypt’s property market offers a plethora of choices. As with any investment, thorough research and seeking expert advice is essential to ensure the best returns on your investment. This includes gaining more insight into what is on offer in Egypt’s real estate market. Equipped with the necessary information and with the aid of an unbiased property consultant, you can be in a better position to make an informed decision to achieve a safe and profitable investment. A professional agent will be able to provide you with their understanding and knowledge of the market as well as advise on which developers you can purchase from and those you should avoid. Below are some of the top reasons why you should consider Egypt for your next overseas property purchase:
- Egypt is a major tourist hub
With ideal temperatures ranging from 15°C in winter to 30° in the summer, as well as being easily accessible via a short flight from most European hubs, Egypt makes the perfect holiday destination. Amongst Egypt’s major historic attractions are the Pyramids and the Great Sphinx, the Abu Simbel temples in Aswan and the Valley of the Kings and Karnak Temple in Luxor. In addition, the red sea coast in Hurghada and Sharm El-Sheikh are well known for being one of the world’s best diving spots. According to a recent report from the United Nations World Tourism Organisation, Egypt is the world’s fastest growing tourist destination. Many foreign pensioners buy retirement homes and currently live permanently in established red sea destinations like El Gouna. The cost of luxury property in Egypt is quite reasonable when compared to similar property elsewhere which is why Egypt an ideal property hotspot for holiday and retirement homes.
- Third fastest growing economy in the world
As a part of the International Monetary Fund loan programme that was agreed in 2016, Egypt has undergone a strict economic reform plan which involved a currency float, subsidies cuts and raising fuel and electricity costs. These severe austerity measures together with improved security have helped the economy to recover from the challenging times which followed the political unrest in 2011. The turnaround in economy has encouraged an influx of overseas investment making Egypt one of the top five destinations in Africa for foreign direct investment. Foreign reserves reached an all time high of $44.4 billion in 2018.
- Growing housing demand as population continues to grow
Egypt’s population clock recorded around 104.5 million of which 9.5 million lived abroad making it the third most populous country in Africa. It is expected that the population will reach 128 million by 2030. The Egyptian Ministry of Housing estimates that a minimum of 200,000 new homes should be built every year to meet the shortage in housing as the country faces a rapidly growing population. For this reason, a large number of private property developers have launched new developments to capitalize on this growing demand. In addition, most developers are now offering extended payment plans with no added interest. A deposit as low as 5% is required to reserve a new home and the balance is paid over 6 to 10 year payment plans.
Buying property in Egypt offers excellent investment opportunities. With due diligence, adequate research and taking on professional advice, real estate investment in Egypt can be very rewarding. The market is booming with new developments across the country in new coastal destinations such as New Alamein City as well as Egypt’s New Administrative Capital.