Egypt is a vibrant country with landmarks of its ancient culture ranging from the amazing Pyramids and Sphinx to the historical city of Luxor. One of the most diverse countries in North Africa, Egypt not only attracts tourists for its ancient history and culture, but also for its legendary River Nile cruises, the alluring beaches of the Red Sea, and the sand dunes and deserts. As levels of tourism rise and the government has instigated changes to procedures to promote foreign investment, property investors? confidence grows in Egypt's future potential and prospective high returns.

Some of the key elements to consider if interested in property investment in Egypt are discussed below.

Egypt is a country that will offer you a rich culture experience and history with exotic adventures like safaris through the desert along with relaxation at top quality beach resorts. Flight times from Europe are less than five hours and Egypt offers an exotic destination for both tourists and those looking for a second home. With first-rate facilities and a modern transport system and infrastructure already in place, Egypt has seen a rapid growth in the tourism industry in recent years. Egypt offers high standard of services and amenities to attract foreigners, an up-to-date transport system and an established infrastructure are well in place. Egypt's record of constant sunshine and warm desert climate add to the fact that Egypt is becoming one of the best investment choices today.

In comparison to property prices in Europe, Egypt's property prices can be considered very low and as the economy as well as the levels of tourism on constant rising, property prices are expected to increase alongside. Prices have already increased each year by an average of 20 to 30%. Any investors in Egyptian property at this time, before prices rise to levels on a par with the rest of Europe, can anticipate extremely high returns.

Large scale developments have in recent years been completed in the coastal resorts of the Mediterranean and Red Sea and many more are in progress in anticipation of the increasing demand for short term rental accommodation. Due to this development, various airlines now operate direct flights to and from the region making access to these areas easier than ever. New luxury residential property districts are also appeals to international interest in the main cities such as Cairo, Alexandria and Luxor where there is a strong buy-to-let market since the demand of quality properties is so much higher than the supply.

In 2005 the Egyptian government modified the buying property process making it simpler for foreigners to invest. Extra incentives for property investors include a simplified tax system with no inheritance or capital gains tax for foreigners. The Egyptian government is resolute to improve the country's economy through the encouragement of foreign direct investment over long term. To achieve this, the government has modified new procedures to customs, income and corporate taxations, several sector industries have been privatized. The Egyptian people have also during recent years seen the country's natural gas deposits grow in to an export market.

In 2005, trends have shown Egypt's economic growth to be at 4.5%.

The future of the property market in Egypt looks positive and this is the best time for property investment. The country is politically established and its economy thriving. Property investors are encouraged by the government with the offer of taxation breaks and low labour costs. There is an up and coming new ?middle class? now to be found in Egypt who have more money at their disposal and a higher spending and purchasing power.

Tourism growth is the foremost to why the demand for short term rental accommodation and the rental yields are the highest Egypt property market has ever seen. The second home resale market is also starting to demonstrate profit potential on the underlying capital investment made as more overseas buyers demand holiday or second homes. With a good infrastructure already in place and property prices low now is the perfect time to purchase property in Egypt.