You can't use the word 'bubble' to describe the Egyptian property market - not yet at least. We need to wait and see what happens in the future, but prices are still so far below any comparable market that talking about a 'bubble' just doesn't make sense.
Now Riga, Latvia, the capital of what was the poorest country in Europe until 1 January 2007 having prices higher than Oslo, the capital of one of Europe's richest countries - now that was a bubble.
The bubble was actually caused through ridiculously easy access to mortgages in the country - up to 105% LTV - with very little in the way of paperwork needed to secure one. This led to annual price increases of 50-60%/year.
As we all know, foreigners currently can't get mortgages in Egypt, but it is only a matter of days/weeks/months before that changes.
When it does, anyone with about GBP8000 in their back pocket will have the ability to buy in Egypt and that will send prices spiralling even faster than they are doing already.
Just keep an eye on how prices compare with other developing markets such as Morocco and Turkey (even Cape Verde - now that is a market where you can start talking about a 'bubble' IMHO). Once Egypt is at similar levels to those markets, then we can start talking about 'potential bubbles'.
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