Are you a DIY person or do you like assistance on site?

This is just one of the many options discussed on this thread which goes back to December 2007 but is still going very strong. It brings to the table the concept of buying a property within a resort community where services charge are payable and help and assistance is on call 24 hours a day, 7 days a week, as oppose to ‘going it alone’. As you might expect the idea of paying for often simple services has prompted a number of very different views and comments!

In simple terms the thread seems to be split between those who want to buy an investment overseas (Egypt is the example in the thread) where everything they will ever need is catered for, and those who prefer to go it alone and buy away from the growing resort communities. There are obvious pros and cons for both but a lot of it seems to come down to an understanding of the language, local community and confidence in the investor’s ability to actually get simple things done such as plumbing fixes, etc.

There is also an interesting angle from one of the posters which suggests that the resort community feel and the fact services and assistance is available on site will actually increase the attractions and ultimately the value of a property. The growing clamour for overseas property homes has seen many relatively inexperienced investors purchase property away from their domestic markets with little real understanding of the local culture and way of life. These are the investors who may well pay a little over the odds for a resort based property, but then there are those who are more than happy to look after themselves and like a challenge!

Summary

Resort or no resort that is the question……….

This post brings a number of interesting factors to the investment table and has actually split the investment community between those who want services and assistance to hand and those who are confident enough to go it alone. There is ample input from both camps and this makes for a very interesting and information thread.

One factor which stands out from the thread is the fact that a growing number of investors are looking at overseas property with little knowledge of how the process works. These are the investors who would probably benefit more from a resort community arrangement where assistance is there at any time of the day or night. This helps to build up a trust factor between the service providers and the home owners, to the benefit of all in the resort.

The fact that you are likely to pay a little more in initial cost and service charges for a resort community venue seems to pale into insignificance for many investors who would rather have that added security at a reasonable cost.

Those who are more aware of how the local customs and culture works, where ever they may be (Egypt is the area mentioned in this post), are able to go it alone and choose from a wider spread of potential investments. There is the opportunity to shave a little off the cost of the property by moving off the beaten track but there are obvious risks. Resort communities tend to attract an awful lot of expats and can be a useful way for new investors to become more integrated into life in the area. The fact people are willing to pay a little extra for a resort community property also reflects the value of support and assistance.

Read the full thread about resort communities in Egypt.

Egypt has been showing a strong property market. This is seen through property price growth margins that come with equally strong holiday and rental investment markets. Even the short-term and resale markets are being anticipated to perform just as well as the other markets. This was the predominant view by members although they have their own different opinions on how the resale market in Egypt would grow. Everything starts with a good investment. Egypt has inherent factors that are already making the thought of investing in the country ideal. As one member stated, Egypt has the following benefits that would cater to anyone who wish to invest in its property market: mortgage market in its infancy, planned increase in low-cost carrier flights, no CGT or inheritance tax, prices are still relatively low, healthy economic growth, stable economy, encouragement of foreign investments, and The development plan of a Dubai-based company to develop resorts in the Northern section of Hurghada and in Cario.

Of course, the diligence and research that an investor puts in his investment also spells the difference between the success and failure of the investment. Other factors such as the location, other developments within the area, competitive edge, prices, facilities, and the local market or buyers as well as other relevant issues should come into play when choosing an investment.

However, there are a few sentiments from members that should be highlighted. Discussions about Egypt’s resale market are actually early vindications since there are still many new developments that await handover to their owners. In addition, the resale market would most likely take off along with the pick up of the mortgage market. The lack of available credit has put a lid on prices and the improvement of financial opportunities that can provide better financial capabilities for both local and overseas buyers.

Hence, with the completion of most of the resort areas around the Red Sea Riviera, the attention has now shifted to Hurghada. This makes it Egypt’s newest property hotspot. In fact, there are several appealing factors that facilitated this shift of focus.

Foremost of these are the several property developments that are still on the way, thus providing an opportunity for the ownership of frontline (or very close to frontline) properties that can be bought off plan. Such properties are most likely no longer available in the other resort areas. Another huge attraction for properties in Hurghada is the granting of freehold titles for any property. This is unlike Sharm where leasehold titles are the only ones granted to its buyers. The relatively low prices, available mortgages, year-round rental season, and the low cost of living are all additional attractive features of the Hurghada property market.

Thus, the resale market of Hurghada is still in its early stages. With the unyielding demand for properties in the Red Sea Riviera resort areas, property prices are only expected to climb up in the next few years.

Know more about the resale market of Hurghada in the Egypt forum.

This thread shows a competitive comparison of property prices bought by most members all over Egypt. It shows the property prices that can assist other members in making their own predictions about the overall property market.

These comparisons were based on the following:

• when was the property bought;
• property costs;
• property size;
• Number of bedrooms contained within the property;
• location (frontline or in the city);
• and the payment plan

Based on the responses in this thread, most members preferred to purchase from prominent property developments located near the beach or an actual beachfront property.

Furthermore, buying fully furnished properties were mostly seen by members as practical and quite advantageous. This is since most Egyptian furnishings are considered by members to have quality standards. In addition, the most common reasons for purchasing these properties are for investment, for flipping, or as a holiday home.

More about the prices of Egypt properties in the Egypt forum.

This question has received as much varied answers as there are as much varied choices of property developments found all over Egypt. As a whole, members chose to buy their properties in the resort areas of the country, near the area of the Red Sea where in the properties afford spectacular oceanviews and quick access to the sea. The most common locations chosen by members included Hurghada, El Gouna, and Sharm El Sheikh. Their particular property development choices included Sahl Hasheesh, Hania Beach, regency beach, Desert Pearl, Lotus, Hurghada Dreams, Suleder, regency towers, Oasis Resort, Palm Beach Piazza, and El Andalous.

Yet as much as members gave varied choices in their purchases, there seemed to be a major consensus amongst members on their reasons for purchasing a property in Egypt. These locations were chosen based on capital investment, followed by the potential for rental returns, personal use, either as a holiday or retirement home, and most certainly, the allotted budget for the purchase. Preferences, such as the overall feel of the location, available amenities, and proximity to other premiere locations were generally secondary in the process of selecting a property. Continue reading ‘Why Buy In Egypt?’ »

In recent months, there has been much discussion and mounting interest on Hania Beach, which is a beachfront property development found at Al Ahyaa in Central Hurghada. This five-star luxury off plan development, which sits along the main road between Hurghada and El Gouna, is seen by many members as a fine investment even during at its pre-launch stage. Some of the points made by members regarding its investment potential are the innate attractiveness of its location, project handled by a reputable UK developer, assets will be held in Escrow, mortgage will be written into contract with a large international bank, and its anticipated status as a luxury development incomparable with other local developments.

However, there is a circulating concern amongst members that the apartments in Hania Beach may not have stayed true to its pre-launch value of 750 pounds per square meter. Members are awaiting clarification on the issue that the units’ prices are not based on the area of the apartment alone, such that the common areas like stairwells and corridors would be added up to the area that would be paid by the buyer. Members agreed on an imminent mass cancellation of reservations should this issue prove to be true, since an increase of its price from 750 pounds to 900 pounds per square meter is quite expensive even for such a development. Continue reading ‘Hania Beach – Hurghada – Egypt’ »

The Regency Towers is an apartment complex located within the El Kawser area in Hurghada. Built by one of Egypt’s top architects, the Regency Towers structure is uniquely nestled by roads on all four sides. In addition to this apparent accessibility, the apartment complex is also located within 10 minutes from the Hurghada International Airport.

It features 72 exclusive apartment units that range from 1 to 2-bedroom apartments. Some of its attractive features include a private beach for all owners and tenants, heated pools for adults and children, satellite television, high-speed internet access in all apartments as well as a common area that features a Jacuzzi and a barbecue area.

From an investor’s point of view, buying a property in a new developmental project such as the Regency Towers has several advantages over investing in older and much established properties. One advantage is that the property is relatively undermined and maintenance free. It also has an enormous potential for capital growth if bought early on during the development. This is aside from providing a substantial potential for high rental yields because of its status as a new development. The combination of the Regency Towers’ status as a much anticipated property development and its location in the resort area of Hurghada most certainly paves more potential in investing in this exclusive apartment complex. Thus, this will also provide more than enough potential in offering substantial capital appreciation.

There are 2 spectacular property developments found north of Hurghada, which are set to be world-class residential tourism oasis. First of these is Gamsha Bay, which is envisioned to be the region’s largest township. It measures a vast 320 million square feet. Once complete, it will offer its residents an open scenic environment with 39 kilometers of coastline and 25 kilometers of beaches. It will also offer a wide array of housing options as well as educational facilities, entertainment venues, and recreational facilities such as an adventure theme park, spa centers, a golf course, and a marina village. It will be divided into nine distinct areas:

• Gamsha Bay
• Gamsha Marina
• Creek Retreat
• Marina Park
• Sea View Crescent
• Downtown Gamsha
• Coral Golf Course
• Peninsula Luxury Villas
• and Extreme Sports World Theme Park.

The township of Gamsha Bay will be completed in five phases within 10 years, with the primary components of the first phase completed within the next five years. Continue reading ‘Pre-Launch Developments in Hurghada’ »

The area has one of the most luxurious property developments in the Red Sea Riviera region. Located about 18 kilometers from the Hurghada international airport, Sahl Hasheesh is a world-class exclusive resort community that primarily caters to the dynamic leisure interests of its guests.

It boasts of a historical concept seen with the architectural design of all the structures found in the area, which are also included in the master plan of the entire resort. Some of its major features include over 15 various different themed hotels, 300 private villas and apartments, a 36-hole golf course where in half of its holes are found under water while the other half is found on the hillside, a marina and a yacht club, a miniature Venice complete with canals and gondolas that thread on endearing boutiques by the water, and a “sunken city” that is historically based on a pharonic city. Thus, it is once part of the Sahl Hasheesh area, which reportedly sunk millions of years ago. Some of the hotels belonging to its cluster of hotels are the Oberoi -Sahl Hasheesh and the Pyramisa Sahl Hasheesh.

Most members from the United Kingdom have reported that the flights to Hurghada have been hard to get, almost always fully booked, and quite expensive. Average plane fares from Gatwick Airport in London, as experienced by several members, are equal or a little less than £280. This is with different airlines offering different rates and add-ons. Flights from the Manchester Airport are reported to generally have higher rates, but may have a few airline operators offering prices close to the average rates in Gatwick.

There is much anticipation to be seen in the reduction of these rates and the increase in the availability of flights to Hurghada from the United Kingdom. The acquisition of EasyJet of GB Airways may offer some solution to this dilemma, but there is no concrete evidence yet to prove so. Currently, flights from Eastern Europe are much more affordable than the flights in the United Kingdom to Hurghada and vice versa.

Discuss low cost flights to Egypt in more detail on our Egypt discussion forum.

In anticipation of Egypt’s impending rise as a choice tourist destination, several rental property developments are expected to rise so as to tap into the demand of tourists coming into Egypt’s major resort areas. The completion of hotels and apartments in Hurghada, particularly those found in Hurghada town and along the road leading to el goun, have raised concerns among the members on the eventual outstripping of supply against demand. The completion of the Sahl Hasheesh resort community and the competitive all-inclusive packages offered by the hotels within the area has also added up to the available rental accommodations.

Most members, however, are positive that there would be no excessive slack in the supply of such properties since Egypt’s tropical climate and beaches would continue to draw tourists to its resort areas. Adding to this confidence is the fact that flights from Germany and in Eastern Europe in general are quite inexpensive and more accessible than in other traditional European holiday destinations such as the Canaries. This is evident with the arrivals of Europeans from the said area. Continue reading ‘Rental Market in Hurghada’ »