Quote:
Originally Posted by Peter Mitry
The resale market is in its infancy; there is so much available off plan at the moment. My view of the market in the Red Sea area is that you should consider holding your investment for at least five years. In this time the market will become more mature, property values will rise and those who have bought in good locations will reap the rewards. My personal preference is front line beach; I would never buy anywhere else for investment.
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I agree entirely. Most attempts now to resale an off plan for profit are going to come up against cheaper properties available with a slightly longer completion date being marketed with no "profit taker" (except the builder) in the process. It looks like the rental market should provide better than average yields on reasonable quality inventory and I believe this slightly more realistic investment term (5 yrs plus) should help to not fuel an oversupply in this sort of property and hopefully avoid a costa del sol scenario (talk about a buyers market). With the only condition that I guess its possible that everyone tries to pile into the resale market in 5 years time in one wave.
By that time maybe awareness and infrastructure will have risen to meet supply.
By the way, whilst I can see the charms of a beachfront apartment has anybody taken much of a look at the city locations in Egypt. I have sold quite a lot of city centre investments over the past 3 or 4 years and I often think it ticks more boxes than areas driven by pure tourism.
Rick