Egypt: Investment Potential

Egypt: Investment Potential

Property investment in Egypt is becoming a hot prospect for a number of reasons. The economy has benefited enormously from some major reforms over the last few years, including a dramatic cut in customs and tariffs and increasing foreign direct investment (FDI). The Egyptian stock market is currently booming and GDP has reached around 5 % annually since 2005. Egypt has a lot more to offer the property investor than the Pyramids.

Egypt's Strong Economy

Egypt's steps toward a more market-oriented economy have prompted increased foreign investment, creating a favourable investment climate for property investors in Egypt. The International Monetary Fund (IMF) rates Egypt one of the top countries in the world undertaking economic reforms. A new 2005 taxation law reduced corporate taxes by a massive 40%, which meant that FDI exceeded $6 billion in 2006 and Egypt was predicted to be the highest FDI earner in the African continent in 2007.

Increased Tourism in Egypt

Any property investor in Egypt is interested in tourism figures, especially if they are looking for a buy-to-let investment. There has been a substantial increase in tourism figures, thanks to an improved infrastructure and Egypt's proximity to Europe. There has been huge investment in roads, railways and airports, and increasing air links between Egypt and the rest of the world are bringing growing numbers of visitors to popular coastal Red Sea resorts. Property investment in Egypt also focuses on the major cities, such as Cairo and Alexandria, which are currently attracting annual capital growth of around 25%.

Egypt - Property Investment Potential

The upward economic trends and growing tourist numbers have had a positive effect on the real estate market. There has been a rise in demand for both second homes and short-term rental accommodation for tourists, particularly in the Red Sea and Mediterranean coastal resorts where property investors are enjoying the best rental yields in Egypt.