Today

Property investment in Egypt is becoming increasingly appealing to UK investors, according to experts at the forthcoming Homebuyer Show.

Egypt provides visitors with year-round sun, 7000 years of history, world-class diving and modern resorts, and with flights from the UK taking five hours and available for less than £300, it's no surprise that the holiday home and property investment market is starting to take off.

Whilst the number of overseas holidays taken by the British has increased by around 5 per cent since 2000, visits to Egypt have increased by a third, with 345,000 visits to the country by UK residents in 2004.

Upbeat market

Jennette Bradbury of Egyptian Experience, one of several Egyptian specialists exhibiting at the Show, said: "The property market in Egypt is proving to be very popular at the moment. It is an emerging market and therefore in its infancy for overseas buyers but with the Egyptian government marketing Egypt for residential tourism this year, the profile of the property market will be raised yet further."

Nagi Azab of Pyramisa Egypt added: "We expect the property market in Egypt to build substantially over the next five years. The market is flourishing at the moment and has been for the past few years with capital growth exceeding 100 per cent in some areas such as the Red Sea Riviera.

Jennette Bradbury, Egyptian Experience: "The property market in Egypt is proving to be very popular at the moment."

"Demand is constantly growing and with many of the resorts and cities imposing building restrictions, supply will be controlled, keeping the market buoyant for a good few years yet at least."

Popular destinations

The Red Sea Riviera is the most popular area of Egypt with western tourists and property investors, of which Sharm El Sheikh is the main destination and has an excellent infrastructure which includes an airport and modern hospital.

Marsa Alam is an up-and-coming area for tourism and is likely to become increasingly popular with residential buyers too. Located near the Tropic of Cancer, it is given a tropical feel with palm trees, long beaches and coral reefs.

Opportunities for property investors in Sharm El Sheikh include holiday properties such as studios and villas, residential complexes, commercial property and land suitable for development.

Ian Marsh of Think-Egypt comments: "You can buy an eco lodge on the Red Sea of 1000 square feet furnished for around £30,000 or a golfing two bedroom apartment of around 1500 square foot on the Red Sea near Hurghada will cost £120,000. In Sharm El Shiekh, apartments will cost from £50,000 upwards whilst a villa in the Four Seasons resort would be £750,000."

Buying advice

As with buying property in any overseas destination, investors do need to be aware of potential problems and pitfalls.

Mr Marsh advises: "The most common problem is with the legal documents or title deeds. Buyers need to make sure they contact a reputable, creditable and experienced lawyer to verify documents prior to committing themselves in any contract or transaction.

"The property should be checked against any loans, debts and disputes, correct signatures and all relevant power of attorneys from the seller should be verified by the lawyer. All contracts should be dual contracts in both Arabic and English and these should be translated to ensure the Arabic matches up with the English as in some cases it has been known to differ.

"I would strongly recommend that investors use a reputable agency with extensive knowledge of the market and developers they work with, and agree costs beforehand, especially with the legal process. If this is done than buying property in Egypt can be a simple and straightforward process."

The Homebuyer Show will be held at the ExCeL Centre in London's Docklands from March 17-19.