[Peter Mitry]

I think it depends why you are buying; undoubtedly the biggest capital gains are to be made in the tourist areas; as amenities and infrastructure improve, when mortgages become available at a reasonable price and as more and cheaper flights become available all of these will have a positive influence on prices.

As for other areas I believe that Alexandria will always have an appeal; although the weather may not be so good it is at least on a par with many other Mediterranean resorts and it has a huge amount of history.

After that, Luxor is one to watch; it is already the centre for millions of tourists who arrive there for the Nile cruises. New developments along the East bank will have the best appeal, looking west towards the setting sun across the Nile. This must be one of the classic views of all time! On a negative note, Egypt still has an enormous amount of poverty and many people find this upsetting. In the Resort areas like Sharm and Hurghada you don't see so much of this but in places like Luxor, as soon as you move away from the tourist areas it is very evident. Its not so bad once you know what to expect; if you take crayons and colouring books or even cheap plastic toys to give away to the kids it is unforgettable to see their happy faces!