Egypt is a dynamic country with indicators of its ancient culture ranging from the remarkable Pyramids and Sphinx to the historical city of Luxor. As being one of the most diverse countries in North Africa, Egypt not only draws tourists for its ancient history and culture, but also for its famous and legendary River Nile cruises, the appealing beaches of the Red Sea, and the sand dunes and deserts. As levels of tourism risen for each year and the government has instigated changes to procedures for how to promote foreign investment, property investors? confidence grows in Egypt's future potential and prospective high returns.



Below are some of the key factors to consider if interested in property investment in Egypt.

Egypt is a destination that offers cultural activities and desert safaris alongside top class beach resorts. It takes under five hours to reach Egypt from Europe, a colourful destination for tourists and those seeking a holiday home. The country has experienced a steady growth in tourism levels recently, aided by a higher regularity of flights and completion of many modern developments in the much sought after coastal areas. Contributing factors to this increase are improved accessibility of flight routes and major luxury and modern developments in the popular coastal regions of the country. With its consistently good weather and a pleasant climate, it comes as no surprise that the country is one of the most popular destinations in which people are investing.

In comparison to property prices in Europe, Egypt's are very low and as the economy and levels of tourism demonstrate an improvement, property prices are expected to rise alongside. Property investments have 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 foresee exceptionally high investment returns.

Several large scale developments have been completed in the coastal resorts of the Mediterranean and Red Sea in recent years and many more are underway in anticipation of the rising demand for short term rental accommodation. You can find a number of airlines now offering direct routes to these regions. For investors the tourist sector is a highly profitable market. Cairo, Alexandria and Luxor are attracting interest from all over the world as there is a strong buy-to-let market in these cities.

In 2005 the Egyptian government modified the buying property process making it simpler for foreigners to invest. Their aim to build up the economy and produce higher levels of employment and domestic wealth growth should sooner or later lead to Egypt becoming a popular choice with oversees investors. To initiate this action it has recently established new procedures to customs, income and corporate taxations, privatized some sector industries and developed an export market for their natural gas deposits. With these changes, the government is aiming to develop the economy and generate a higher level of employment and domestic wealth growth, which should ultimately lead to Egypt becoming an extremely attractive option for overseas investors.

For the past few years Egypt has seen, and is still experience, a strong economic growth with GDP at 4.5% in 2005.

The property market in Egypt looks positive as well as the country's future and a property investment should be a good choice. The country is politically established and the economy is prosperous. Property investors are actively encouraged by the government with the offer of taxation breaks and low labour costs. Further to that, emerging in Egypt is a middleclass who have a stronger purchasing power.

Short term rental accommodation is in demand due to tourism growth and the market is seeing the highest rental yields in Egypt than ever before. As more overseas buyers are purchasing second and holiday homes, the second home resale market is displaying revenue potential on the underlying capital investment made. With property prices as low as they are, now would be the perfect time for investing in property in Egypt.