[Peter Mitry]

Hello from sunny Sharm! Its a good question and one which many people will be asking. I suspect that the answer will be the same as in any developing market.

Prices on new developments are increasing at around 10% per quarter; the market is in its infancy and for sure there are probably four or five good years of growth before it will inevitably tail off. By this time some prices will have trebled and a number of factors will influence how easy it will be to sell on. Whatever happens, market forces will prevail; there will always be a market for front line beach and this is a diminishing commodity so prices will continue to rise.

Many of the current projects, whilst not front line, are very close to it and in the future new projects will be further and further from the beach as the best land is developed and land prices increase.

There will reach a point where Developers will push prices too high too quickly and there is a stong possibility that this could put a brake on progress.

However, the big issues which will then drive the market upwards still further are more & cheaper flights and the availability of affordable mortgages.

So the bottom line; for the next four to five years there is significant growth potential providing you buy at the lowest prices available and try to get as close to the beach as you can afford.