Egypt the Hot property location for 2007

With a growing economy and major developments in the tourism sector, Egypt is now in the news as one of the top property locations to invest in for 2007. Their forward thinking government is investing in the infrastructures and there is a growing FDI ( Foreign Direct Investment) which is happening because of the more liberal economic policies. The government has cut customs and tariffs and a new taxation law cut corporate tax from 40% to 20% which has had a huge impact on FDI. Egypt is one of the highest earners of FDI on the African continent. There are no restrictions on the acquisition of the land necessary for the creation, operation and extension of the enterprises whatever the nationality, the equity stake and the place of residence of the holders of capital in the companies.

Egypt is now regarded internationally as a serious trading partner which is politically and economically solid.

Egypt still suffers unfairly from the belief among some investors that it is not a very attractive country to purchase property in and that they are not tackling poverty issues and the economy. The reality is much more positive and that's is why there are many middle eastern investors committing billions to investing in Egypt. This perception will change in the coming year and the cheap property prices will fuel more demand and start to push up prices in the next two years. Egypt has a lovely climate, a growing tourism industry and now an infrastructure that is being improved daily with huge government investment . Its liberalization of the aviation industry is expected to have a positive impact on tourism arrivals which are expected to grow to 13.5 million by 2011. This is expected to produce 250,000 new jobs in the same period which should have a dramatic impact on the economy. Big developers have moved into this market, companies like Emaar and Damac are there already and more will follow. As the prospects look good for the economy of Egypt property investment there looks like being a long term success story and an interesting investment choice for 2007.

Property prices are expected to grow considerably over the next few years and I would expect this market to be one of the most popular markets for 2007 in the UK and Ireland. Property prices are expected to grow by around 20% in 2007 and are expected to continue to grow for some years to come.

Now is the time to purchase when the property market there is emerging. Aquarius Properties are launching their new off plan development called Zafarana Beach Resort, which is a five star beachfront development situated in the Red Sea south of Cairo and the North of Hurghada. The development is being built as eco friendly with power generation through waste recycling and a desalination plant for the water supply.

These are stunning high specification apartments with private beach and Coral reef, scuba diving school and water sports. Diving shop, restaurants, night club, shops and supermarkets, wellness and fitness centre, 24 hr in house security, limo service, wireless internet, tennis and squash courts, botanic gardens and more.

Access is easy to the resort with access from two international airports in Cairo and Hurghada and also there is a new airport at Ain Soukhana being built only a half hour from the resort which is expected to carry 1 million passengers and is expected to be completed in 2010. A full due diligence has been carried out on this development. There are 153 one bed apartments frontline for sale priced at €26,500 / stg£18,106 with an optional furniture package which is required if you want to rent the apartment.

The furniture package costs €3, 500 stg£1, 622. The purchase costs are around €2,000 stg£927 incl legal costs. The two bed apartments cost between €39,950/ stg£18,520 or the middle floor apartments to €44,950 / stg£20,838 for the garden level ones. They are on average 77m2 in size internal space with a terrace of 16m2 and a garden of 80 m2 for the ground floor apartments.

Freehold ownership applies with this development and an escrow account operates to protect the purchasers. Maintenance costs will be around €50/ stg£23 per month. There is a bank backed rental guarantee on the two bed apartments which averages 10% pa over 5 years. The rate is increased annually from 6% to 14% pa in year 5. A pooled rental system based on occupancy levels will operate for the 1 bed apartments and a return of around 8% is expected on these. High capital appreciation is expected in the next four years. Aquarius Properties hope to assist a lot of people become property millionaires in the coming years. Don't wait call us now on 0870 334 5288 to reserve an apartment in this wonderful development and get in early. Email address info@aquariusproperties.com web www.aquariusproperties.com. Also pre-register for our next Free seminar on How to Build a Property Portfolio

Article by Noreene Hynes
Managing Director Aquarius Properties