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Don’t place your property purchase in the hands of the gods

15th May 2007 Print
Manta Residence For the canny overseas property investor, the term ‘emerging market’ creates a wave of excitement. In order to make the most out of a property investment it is wise to actively seek out markets offering high capital growth and strong rental potential and more often than not this means buying off plan.

Egypt, in particular the Red Sea Riviera, has come to the forefront as the latest emerging market with over 2000 foreign nationals purchasing a property in 2006 and 4000 expected to do so in 2007. In line with demand, property prices have risen, in some cases by as much as 50% in the last 2 years according to the Egyptian Tourist Authority and rental incomes have reached 11%, nearly double the average UK rate on occasion.

Tahir Ali, MD of Egypt Revealed, comments, “As with any an emerging market there is a window of opportunity. A growing economy, increasing tourism, encouragement of foreign direct investment by governments and direct flights are all good signs. Egypt has all these in place; the key to successful investing is to see the opportunity and enter in the early stages.”

A number of prestigious Dubai developers have identified the area around Hurghada, once a small fishing village now a thriving holiday resort, as having strong investment potential and are currently developing a number of off-plan residential resorts. The Manta Residence for example is a premier beachfront development located in Hurghada, comprising 1 and 2 bedroom apartments and 4 bedroom villas all with kitchens, bathrooms, air conditioning and internet connections included. Being only 15 minutes from the international airport accommodating direct flights to the UK, accessibility is excellent and Sahl Hasheesh is nearby providing a wide variety of amenities. With prices starting from just £23,570 / €34,633 for a 1 bedroom apartment with sea views and £90,000 / €132,230 for a 4 bedroom, 3 bathroom villa the appeal for both single unit investors and those with portfolios is clear.

Tahir comments, “Purchasing a property off plan enables buyers to enjoy discounted prices as well as capital gain over the duration of their build. Completion date for the Manta Residence is December 2008 and so with prices rising on average 20% per annum there is a considerable profit to be made.”

The Egyptian government is supporting the development of this area by providing for the main utilities such as water, electricity and sewage. They have also specified that all projects between Hurghada and El Gouna be completed within 3 years so investors can be sure their off plan property will reach conclusion within a reasonable time frame. In addition Egypt, along with 12 other Middle Eastern countries, is planning to undertake a series of projects in order to increase tourism to 150 million visitors by 2020 as part of the Vision of 2020 study.

If you therefore are considering investing in an emerging overseas market, don’t leave your fate in the hands of Dedun, the Egyptian god of wealth. Carefully research the key factors required for successful property investment and get in early before your ‘emerging’ market has emerged.

For more information about investing in Egypt or the Manta Residence, visit

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Manta Residence