credit crunch

[sdgc]

Does anyone think that the credit crunch in the uk has had, or will have any effect on the egyption market (slowing down sales, reducing prices etc ) ?

Originally Posted by sdgc

Does anyone think that the credit crunch in the uk has had, or will have any effect on the egyption market (slowing down sales, reducing prices etc ) ?

I'm sure it will have an effect on ALL purchasing worldwide as it becomes increasingly difficult and more expensive to borrow funds. Those, like myself, lucky enough to have funds available to purchase property in cash, may still opt for investing in property abroad. Our funds have sat in high interest bonds in the UK for the past few years and have barely grown. We chose to invest in property in the hope that our funds will grow and give us a tidy pension fund in a few years

I'm sure the 'credit crunch' will have an affect in property purchase. Everyone is experiencing less disposable income, myself included, additional expenses are just not an option until this looming recession has passed and we can spend again.

[Sanchez]

Great question ..... I've been thinking about that for a while too.

It's a "double edged" sword ........
Many people in the UK will have less money .... but maybe alot of those people weren't potential investors in Egypt anyway.
Investors with money who may have previously invested in the UK, may be looking for better options abroad.

The nice thing about the property market in Egypt is that it has investors from all over the world. Although a significant percentage are British.

My personal opinion is yes it will, but only marginally.......

[Lsab]

I tend to agree with you Sanchez.

The credit crunch isn't worldwide, in fact as I understand it, relatively few countries are effected e.g. the UK and the US. The Egyptian market is not dependant on us Brits, so we might see some developments slowing down but not all. I'm sure the money men amongst us will have a more informed view which I hope they will share with us!

Originally Posted by Lsab

I tend to agree with you Sanchez.

The credit crunch isn't worldwide, in fact as I understand it, relatively few countries are effected e.g. the UK and the US. The Egyptian market is not dependant on us Brits, so we might see some developments slowing down but not all. I'm sure the money men amongst us will have a more informed view which I hope they will share with us!

Sorry, when I stated Worldwide I actually didn't mean the Credit Crunch is Worldwide but purchasers from the UK in particularly will slow down, having a knock on effect with UK purchasing Worldwide not just in Egypt if you see what I mean.

[rossantony]

I removed the projects name so that the focus in on the economics.....

Ross Donaldson is the Regional Manager for Experience International in Egypt, and has taken a special interest in the xxxxx project, believing it to be the first of many new luxury 5 star developments being planned on Sahl Hasheesh – he explains about the property market in Egypt in general and why this development is so special. “It is an exciting time in Egypt right now; the country is going through an unusual period of economic growth, with Egyptian GDP hitting 7% last year. This is, of course a huge benefit for investors, and here in Hurghada, investors benefit from the ability to purchase freehold property, whereas on the Sinai Peninsula, and Sharm el Sheikh in particular, you can only buy on a 99 year lease. Until now, Hurghada has been a secret for savvy investors, and has only been promoted by specialist firms, and even though the UK economy is stalling, interest in Egypt is higher than ever. With 25% capital growth per annum it couldn't stay a secret for ever, and now many clients are countering their UK losses by investing their savings into the high returns that Hurghada is offering. The best thing about Egypt for buyers is that it is such good value. Everything is affordable; here you can enjoy the good life at a fraction of European costs. That is why Egyptians are building high end luxury resorts like xxxxxx. It’s a gated community, with 24 hour security, safe and hassle free. It has a luxury spa on site, so you won't have to move far if you want to be pampered. When you visit Egypt, and Sahl Hasheesh, in particular you feel as if you are living in a refined country, with history on your doorstep. This is certainly a development, and a location, that will be successful."

[Lsab]

Originally Posted by SuziQ2708

Sorry, when I stated Worldwide I actually didn't mean the Credit Crunch is Worldwide but purchasers from the UK in particularly will slow down, having a knock on effect with UK purchasing Worldwide not just in Egypt if you see what I mean.

Apologies Suzanne - I wasn't negating what you said

Originally Posted by Lsab

Apologies Suzanne - I wasn't negating what you said

No problem Linda, just didn't explain myself very well

[Sanchez]

The credit crunch has hit the US and UK the hardest so far, but some othere countries in Europe are also feeling it.

I still think that the majority of investors in Egypt are people with a decent amount of disposable income, looking for an alternative investment / second home in the sun.

Interestingly I was recently in El Gouna and was looking at some properties. The agent did say that there were a few less Brits looking for properties, but more Egyptians / Russians.
This is a big advantage that Egypt has over some other property investment areas.

I've just brought a property off plan which is due to complete in 3 years. Not a bad option with the present economic climate.......

[Organics1]

Hi All,

I keep reading articles like the one quoted above about how Egypt (Red Sea) property market is seeing capital growth from anywhere from 15% - 30% per annum. Other than EL Gouna where there is a track record of prices increasing and property being sold (but please bare in mind this is a town with over 3000 permanent residents) how many other people have bought a property of plan or not and actually made these staggering profits. The one main reason for the hike in prices is the cost of materials, just ask any constructor!

Interested to hear comments