Is now the time to invest in Egypt?
Sun, Sea, Sand… Egypt has an abundance of all three! Add to this the huge increases in Tourism, an economy that is growing even in a global recession and properties that look set to increase in value for years to come and you begin to see just why Egypt is the place to be investing your money.
Economy
The Egyptian government has implemented an Economic Reform Programme, this includes new economic policies to drive the economy forward and increase employment. During one of the worst recessions the world has seen, the Egyptian economy grew grown by more than 5% during 2009. Massive growth in tourism is responsible for a substantial part of that growth, so it is easy to see why Egypt makes the short-list of so many of the ‘next hot spot’ and ‘top ten places to invest’ articles. Today, Egypt is one of the most stable emerging markets.
Tourism
With the Worldwide Tourism Organisation has highlighted Egypt as one of the fastest growing tourism Sectors, this has been backed up by Egypts Minister of Tourism who has stated that the country has recorded a 24% increase in revenue generated from tourism in the first quarter of 2010.
These figures should come as no surprise, as year on year revenue through tourism as been increasing:
2006 = 7,591
2007 = 9,303
2008 = 10,572
2009 = 12,574
2010 = ???
(US$ million)
Accessibility
With Egypts ever increasing popularity, the demand for flights has been increasing and the airlines have been quick to respond. With companies like EasyJet, ThomasCook and British Airways all increasing the number of flights, it is now easier than ever to travel to Egypt whenever you wish. Hurghada International Airport is having a brand new terminal built that is scheduled for completion in 2011. The new terminal will increase the capacity by another 800,000 passengers a year, taking the total capacity to 7.5million passengers annually.
Activities
Egypt really does offer something for everyone, whether you want to just spend your days by the pool topping up your sun tan, explore the wonders of the Red Sea Reefs with an afternoon of diving or would prefer to be racing a Quad Bike around the desert. Everybody will find something to their liking. This is one of the key reasons along with the weather, that tourist will always come to Egypt. It really does offer the perfect place for a holiday or a home.
Diving – With its crystal clear warm waters and stunning reefs, the Red Sea attracts millions of Divers year on year from all over the world. Hurghada has become one of the most popular diving and snorkling destination in the world, not just in Egypt. It is characterized by its sheltered reef and exciting dives close to shore. There are also several wrecks in the area that can be visited if you are interested in doing so. The underwater sea life varies greatly and you have the opportunity to see some exotic creatures at all times.
Golf – Golfing near the Red Sea has become increasingly popular, particularly in the region of Hurghada. As far as promoting golfing by the Red Sea is concerned, the resort Sahl Hasheesh surely plays a key role. Sahl Hasheesh once complete will have 5 golf courses. 2 of which are well on the way to being completed.
And of course, being Egypt, there is little worry of having to take a rain check.
Weather
With an almost guaranteed 365 days of sun per year it is easy to see why Egypt remains a popular location for tourists all year round. The mild winter period in Egypt, between November and April still has temperatures that average 14 °C and the the summer season May to October has average temperatures of 30 °C .
Investment Potential
All the these aspects have meant that the demand for property in Egypt is increasing, with El Gouna, just north of Hurghada experiencing an increase of 35% in the average selling price of a property between 2008 and 2009. Hurghada property will surely be a big benefactor of increasing prices. Its prices are currently among the lowest in the world, and massively rising tourism is quickly bringing increased affluence to the region.
So with property prices just at the beginning of a steep upwards curve and tourism at an all time high and ever increasing, there is huge potential for ivestors to make some serious gains.
Low Prices + Rising Tourism = High Rental Yields