Unique Desert Pearl scheme is planned with European buyers in mind

Construction work is underway on a unique new residential development on Egypt’s Red Sea Riviera where it is possible for investors to recover their investment in just over four years.

Desert Pearl Beach Apartments, a gated development of 226 apartments comprising studios, one-, two- and three-bedroom homes within a five-storey building around three sides of a courtyard garden with pools and a pool bar, is taking shape on a plot of almost one acre immediately behind the hotels overlooking the pearl white sandy beaches of the former fishing village of Hurghada, today a popular diving and leisure resort.

“Desert Pearl, which has been planned with international buyers in mind, represents a new opportunity for UK and Irish investors to gain a foothold in the burgeoning Egyptian property market,” says Ian Proetta, marketing director of Worldwide Destinations which is selling the apartments at Desert Pearl.

“Although there are other new residential developments near Desert Pearl, they have already been completed and the lack of ‘For Sale’ boards in the area underlines the fact that virtually all the other properties have already been sold. This means that Desert Pearl is the only development in a prime location currently available at prices lower than £18,000.”

The European-style gated development is unique in Hurghada where, traditionally, apartment buildings are regarded as ‘finished’ before windows, doors, kitchens and bathrooms have been installed.

“Desert Pearl is different,” says Ian. “It has been planned with the requirements of European purchasers in mind, so all the apartments come with glazing and doors in place, and polished ceramic floors. Main features include fitted wardrobes in bedrooms, tiled bathrooms with white porcelain fittings, and fitted kitchens with granite worktops.”

TV, telephone and internet connections are standard.

Interior design and high quality furniture packages will be available from Worldwide Destinations at competitive prices.

All apartments have sun terraces, many with sea views. Inward facing ground floor apartments have direct access to the pool and courtyard.

Desert Pearl, which is 200 m from the shopping promenade and beach, will have facilities which include an internet café, gymnasium, games room, laundry and storage for diving equipment.

Pre-launch prices of the freehold apartments start as low as £17,600 for a 44 sq m (474 sq ft) studio. Air-conditioning is available as an optional extra for £500.

The Egyptian tradition of shift working round the clock means that homes in the first phase of Desert Pearl will be ready for occupation in the spring of 2008.

Worldwide Destinations has formed a joint venture with an established local construction company, carefully selected for the way it conforms to the stringent quality standards which are a hallmark of Worldwide Destinations’ projects around the world.

Investing in the Desert Pearl Beach Apartments

Pre-launch prices of the freehold apartments start as low as £17,600 for a 44 sq m (474 sq ft) studio rising to £48,000 for a three-bedroom apartment of 110 sq m (1,184 sq ft). An easy payment plan devised by Worldwide Destinations to attract first-time overseas home buyers means that an apartment can be secured with an initial payment of 10 per cent of the purchase price - ie £1,760 on a studio - followed by three payments of the same amount during the remaining 12 month period. The balance can be paid in cash or with a mortgage arranged in Egypt.

Worldwide Destinations is one of the first companies to offer clients mortgages on Egyptian property. Those who pay a one-off deposit of 40 per cent of the purchase price are entitled to free lifetime cover under a unique 24-hour legal service employing qualified lawyers to assist with ‘life’s uncertainties. Valued at £3,995, and including completion costs on the purchase of the property, the service ranges from advice on property issues, wills and probate to accidents and personal injury claims. Traffic offences, divorce and compensation claims are among other areas in which advice is available.

There are no restrictions on foreigners buying property in Egypt and the process has been simplified by Worldwide Destinations which has produced a purchase package embracing all the fees and taxes involved for a one-off payment of £995.

Annual charges payable by owners will be around £500, comprising a £50 real estate tax and a maintenance fee in respect of annual internal and external redecoration, as well as cleaning and care of the pools, lifts, lights and garden.

The Desert Pearl Beach Apartments rental pool will be managed by an independent company explains Worldwide Destinations which predicts a high rental return, enabling capital investment to be recovered soon.

“A conservative estimate puts annual capital growth in this area at 20 - 25 per cent,” says Ian.

There is no stamp duty, government tax, VAT or inheritance tax on property transactions in Egypt.

Relaxation of foreign investment rules in Egypt means that currently there is no capital gains tax, but James Gonzalez, property adviser to Desert Pearl, explains that properties are registered with the government to ensure that this is applicable when they are sold.

“Egypt has a double taxation agreement with the UK so purchasers should seek the advice of a UK accountant on all transactions,” he says.

Living at Desert Pearl

The Desert Pearl Beach Apartments are located in the El Kawthar area of Hurghada, close to the heart of the town and just 200 metres from its spacious tree-lined boulevards and the beach.

Complementing its traditional souk, and confirming the cosmopolitan nature of the overseas visitors Hurghada attracts, local shops offer goods with popular international brand names. Hurghada’s first hotel - the Sheraton - was built in 1980. Today other top name hotels include the Marriott, InterContinental and Hilton. Nightlife venues include a Ministry of Sound nightclub.

The marina is one of the biggest of its type in Egypt.

For families, leisure facilities close to Desert Pearl range from the Sinbad Aquapark to Hurghada’s bowling centre.

An abundance of diving and snorkelling opportunities are available in the Egyptian Red Sea which is said to offer one of the best diving experiences in the world. Says Ian: “The myriad species of fish around the reefs of Hurghada create a ‘must see’ paradise of natural seascape in crystal blue waters full of coral formations and colours to be enjoyed by all ages.”

Also available are sea cruises on glass bottomed boats and to the beach clubs on nearby Giftun Island, as well as sailing, windsurfing and kite surfing.

Inland there is a choice of jeep safaris and quad bike excursions to Bedouin camps in the desert, or camel-trekking and horse-riding.

Nearby golf courses include the Gary Player designed Cascades golf course in Soma Bay and the El Gouna Golf Club.

The famed antiquities of Luxor, Karnak and the Valley of the Kings are about two-and-a-half hours away by road.

Despite its location on the edge of Egypt’s Eastern Desert, and the growth of its population, Hurghada has ample fresh water. Supplies drawn from deep natural wells - some of which is bottled locally for drinking - are complemented by water pumped from the River Nile 250 km away.

Local healthcare facilities include the services offered by Hurghada’s 12 hospitals.

While the quality of life on the Red Sea Riviera is high, the cost of living is so low that shopping makes some visitors feel like millionaires, according to Ian who points out that a litre of petrol costs only 10 pence and a three course restaurant meal - including seafood specialities - can be enjoyed for as little as £1 per head and certainly less than £10.

The Red Sea Riviera’s warm climate makes it a popular year-round destination. Daytime temperatures range from 15 degrees Celsius in winter to 30 degrees Celsius in summer.

Getting there

Desert Pearl is 10 minutes by taxi from Hurghada International Airport which receives daily direct flights from London Gatwick, Birmingham, Manchester, Cardiff and Glasgow. Flights take around four-and-a-half hours. Direct charter flights and commercial flights which connect in European airports are available also. Typical flight times are three-and-a-half hours from Rome and less than four hours from Munich.

For further information, visit worldwidedestinations.com.