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Popularity with investors

Egypt’s tourism is mostly concentrated around its coastal regions, along the Mediterranean and Red Sea coasts, and this makes this region the most popular among those looking for investment property in Egypt. The Red Sea area is undergoing continual improvement, as investment goes into developing luxury facilities for its visitors. British buyers are particularly keen on the region and demand from them is growing fast: agents reported a 50% increase in the number of British purchasers between 2005 and 2006.

Red Sea tourism

The Red Sea coastal region attracts a steady stream of tourists due to the beauty of its natural landscape of pristine beaches and vast deserts, its outstanding underwater attractions for diving enthusiasts, and its year-round sunshine. This tourism is vital to Egypt’s economy and ensures the area’s importance to the country as a whole. International real estate investors, keen on profiting from the buy-to-let opportunities in Egypt created by the high humber of tourists, have made this a prime area of investment.

Sharm El Sheikh

One of the most famous of the Red Sea resorts is Sharm El Sheikh, a city located on the southern tip of the Sinai peninsula that offers luxury accommodation and a glamourous lifestyle. Just like all of the Red Sea resorts, tourists are drawn to its outstanding beauty and fantastic snorkelling and diving opportunities. The resort was rocked in 2005 by a terrorist bomb that killed 88 people, mainly Egyptians. Although the region’s tourism industry predictably suffered following the attacks, tourist figures have been rising over the last two years, and foreigners purchasing property in Sharm El Sheikh have been helping property prices to rise.

New developments

The coastal resorts’ year-round tourism inevitably attracts international investors and developers alike, wanting to take advantage of twelve months of potential rental yield.
There are a growing number of new developments under construction in the region to cater to the tourist, and consequent investor demand. Across from Sharm El Sheikh is Serrenia, a billion euro project with its own marina. One of Dubai’s largest developers, DAMAC, is building a new luxury development, Gamsha Bay, to the north of the region, and the latest golf resort, Sahl Hasheesh, has attracted a staggering €660 million of investment from The Egyptian Resorts Company (ERC). Developers and investors are attracted not only by the rental return potential, but also by the inherent capital growth opportunity posed by investment property in Egypt. Experts have reported that prices of real estate in Egypt’s main resorts have risen by around 50% in the last two years alone.

Related items

Documents and Reports

	Egypt property investment report (392Kb)
Documents and Reports

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