In the UK, the property market may be in limbo and interest rates falling, but in Egypt heavy investment in the tourism industry means that the forecast looks good for property investors.

One of the reasons for Egypt's good economic performance is that it does not rely on a small number of countries for its tourism revenue; instead people travel to Egypt from all over the world, boosting the tourism market and having a positive knock-on effect for property purchasing interest.

The amount of government investment made in Egypt in recent years has meant that the country's property market has really started to take off, and house prices are continued to rise by around 7 per cent annually over the next decade.

Another incentive to buy in Egypt is the favourable tax rules for property investors, and initiatives such as those seen at the Oasis Marina development in Hurghada, which offers a promise of five years guaranteed rental income, along with the opportunity for the owner to use the property for 12 weeks a year.

The overall appeal of Egypt as an investor option is highlighted by Steve Worboys, Director of Experience International who says: "Egypt is a modern state and we have seen it grow as a tourist destination over many years due to its rich history and unique attractions such as the pyramids; now, though, people are increasingly seeing its potential as a place of investment for both remuneration purposes and the fact that it is a year round holiday destination."

In 2007, Egypt saw some 11 million tourists visit; an increase of two million on the previous year and this figure is expected to reach 14 million by the end of 2008.

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For more information visit:
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Article first published 18 November 2008