Egypt is generally famous for its friendly culture and atmosphere as well as its mostly warm weather and moderate climate all year long (mild winter and hot summer). It is also a country that is blessed with a strategic location having 2 coastal fronts, one by the Mediterranean towards the north and another by the red sea towards the east.
Add to that a plethora of breathtaking natural sceneries ranging from its beautiful desserts to magnificent hills, mountains and valleys. All of that is of course in addition to the ancient ruins from past civilizations such as the Pyramids.
All these things make Egypt a prime destination when it comes to the touristic property market and in this article, we shall give a brief overview on two of top locations for vacation home and property investment.
The North Coast
One of the most high-profile areas when it comes to Egyptian summers, the North Coast is perhaps the most popular destination in Egypt between the months of June and September.
Surge in Demand
As per the analysis of data by Real Estate experts, demand for residential units in the north coast is expected to continue rising with the ongoing launch of new expansions to existing projects by Real Estate developers as well as expected price increases.
Increase in Real Estate Unit Sales
This is evident by the recent notable financial success of most Real Estate projects in the area such as GV Investments achieving its EGP 1 Billion target sales for summer 2022 and setting EGP 2 Billion as the target for 2023. Additionally, City Edge Developments achieved a 37% growth during 2022 summer season vs 2021 and had set a 20% growth target for 2023. These were just a couple of examples to showcase the booming state of the touristic property market in the North Coast, especially during the months of summer.
Government Facilitation
In an effort to promote property investment in the North Coast (and generally in Egypt), the government which is always exerting efforts in integrating private projects with their state counterparts, has issued a decision which facilitates Real Estate ownership for foreigners and has eliminated restrictions for non-Egyptian ownership of Real Estate. Additionally, the prime minister has issued a decision to extend the periods of real estate development projects by an additional 20% of the same total period and post the installments due from the developer for the same period.
Upcoming Projects
Based on the success of the “Ceaser” project in the North Coast, SODIC has recently decided to sign a contract with Al Safe Real Estate developments to further develop 440 acres across the North Coast which is expected to include around 400 residential units.
Also, Misr Italia announced the first phase of its “Solare” project, and all 320 units were sold out in a matter of hours, generating a total of EGP 2.4 Billion in sales.
As for Mountain View, they have also announced the upcoming development of 200 acres of land in the North Coast (specifically located at 179 km) for its LVLS project. This project is seen as an extension to Mountain View Ras El Hikma which launched back in 2007.
Finally, the minister of housing, utilities and urban communities in Egypt has recently issued a decision to allocate 250 acres of land in the North Coast to Madaar where it is expected to launch its “Azha North” project. The project is expected to be comprised of a luxurious hotel as well as residential and commercial units.
El Gouna
As opposed to the North Coast which is more of a seasonal destination which hits its peaks during the months of summer, El Gouna is a destination that is sought after all year long. Located only 25 Kms north of Hurghada, it is quite accessible to most Egyptians seeking holiday home investments and is only a 4-hour flight away from most of Europe’s major capitals. It is the perfect mix of beach, lagoons, and glamorous hotels spread across 9340 acres of land along a 10 km beach.
El Gouna is a top destination when it comes to the second home resale market due to the fact that overseas buyers from other countries are consistently seeking holiday homes there as Egypt and El Gouna in particular represents a Holiday location for them. Property investors are also making very good use of the increasing demand in short term residential rentals.
As such, El Gouna is already home to several luxurious residential resorts and compounds as per the below sample.
· Kamaran Resort
· Fairways El Gouna Resort
· Shedwan Resort
· Miramar Residence
· The Nines El Gouna Resort
· Art Island El Gouna Egypt
· Ancient Hills El Gouna
· Cyan Gouna Egypt
· Mangroovy Gouna
· Swan Lake El Gouna by Hassan Allam Properties
· Pearl Resort
All in all, El Gouna is an excellent location for Real Estate investment as per the below factors.
Management Company
All of Gouna’s residential living spaces are managed by the very reputable Gouna management company, Orascom Developments. Orascom’s role does not end with the finishing of units, but they are still very consistently much involved in unit maintenance as well maintaining the supply of electricity and water. A fact which provides a secure atmosphere for future Real Estate investment in the area.
Style of Architecture
El Gouna quite simply boasts the finest architectural style in the whole area where it manages to maintain a perfect balance between local and western architectural styles, both of which are intertwined in perfect harmony.
Infrastructure
Orascom has made sure that El Gouna is well equipped with the finest facilities one would expect to find in a high-end residential community. Those range from a European standard hospital to veterinary services to an international school among many others. There is also a solid transportation system that covers the entirety of Gouna, it is mainly composed of TokToks and Taxis. Additionally, there are several high-quality workspaces all over the place for people to conduct business in a professional environment.
El Gouna quite simply provides the highest standards of living needed for a luxurious day to day life for its residents.With that, we conclude our article discussing Investment Hot Spots, Egypt’s Touristic Property Market. If you would like to get more information and read various other interesting articles, we invite you to check out Bayut Misr blog and stay up to date with the latest we have to offer.
