[andyharris]

Dex

The only way you can ever gauge investment returns is by looking at the historical data in the area you wish to invest in.

I am a developer in Hurghada, Egypt. Previously I was involved in the industry in the U.K where it is easy to gauge a rental or sale price and capital growth by checking a few estate agents and researching what similar sized properties in the same area are renting or selling for, you can even check with the land registry to see what the nearest sized property sold for in the recent past.

These stats are not available in Egypt, because there is no real history of apartment rentals in the area, its a brand new industry for there.

The only guidance I can give is on long term rentals, from locals and europeans that work there.

In an area like El Dahar you can pay as little as £100 per month for a one bedroom apartment. El Hadaba is not much more and Sakaala you will pay about £150 per month.

El Kawser will return you from £250 to £300 per month as it is a much cleaner up market area.

The short term 'Holiday rental' market has not even started yet as there are very few quality apartment complexes even finished and the all inclusive packages in quality hotels are still exellent value for money

Therefore beware of anyone that offers a guaranteed rental scheme as there is no history and to offer this they can have only loaded the price of the property by the amount they promise to pay you back.

I doubt anyone will offer more than two years guaranteed rental because it wiill load the price too much and also their plan will be to have moved on to another destination elsewhere in the world.

We do not and will not speculate on returns as we live there, continue to manage our own developments along with the owners and have a long term view.

Remember if you are presented with anything that sounds to good to be true it often is....

As far as capital Growth is concerned, history is a gauge of the past and a guide to the future. I have seen land and property in Hurghada double in the last twelve months and has no sign of slowwing down, but when you bear in mind a quality 1 bedroom apartment can still be purchased for around £25k in a great area that is around a five hour flight from the U.K with a twelve month, guaranteed season then I would sugest there is still a lot of room for growth.

I hope I have answered your question.

Regards

Andy