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

Hi Rick and welcome to the forum; your contribution is very welcome and I take your point on city centre property. In Egypt we are focusing on Hurghada and Sharm but there is no doubt that for rental returns and Capital growth capital cities are the best performers. Sophia & Bucharest have done brilliantly in recent years and I think that Cairo too will prove to be a strong market.

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

Hi Peter and thanks for the welcome.
Digging to see whats available in city locations in egypt at the moment but very early days. may just stick to the simpler concept of beachfront at the outset and bolt on city projects as progress.

Cheers

Rick

I know that Regency have an upcoming development in Cairo.

Yeah that is correct ans Dama Properties as well have 2 or 3 amazing projects in cairo, but sure prices are more expensive

__________________
George Sabry
Co Partner
Real Estate Mart
The Ultimate Guide To Red Sea Real Estate Investments And Resale Properties
And Property Management Services

HI Rick, I think its a good thinking to stick at the moment with beach front as its the demand of most purchasers at the moment, as most of them coming from big cities and i think they are looking for change and calm, and enjoying the sea & Sun

__________________
George Sabry
Co Partner
Real Estate Mart
The Ultimate Guide To Red Sea Real Estate Investments And Resale Properties
And Property Management Services

Hi Riccal

Welcome to the forum. There are several large off plan schemes around Cairo and many more planned. A lot of them have sold well like Allegria and Kattameya Dunes. In terms of buying existing property one of the problems you may encounter is getting good title. I tried to buy an apartment in Cairo a few years back and was offered financing as a foreigner by First Taamir mortgage co (65% LTV 10 year term 14% rate in Egyptian Pounds)- the problem was that whatever I looked at, and to be fair these were mainly central appts in old buildings in Zamalek and Mohandisen, these buildings had pretty unclear title history and most were not registered making it a risky proposition for me as a foreigner and unmortgageable. I wish I had bought it anyway as it was only USD 650 psm for 1500 sq mtrs in Zamalek with views over the nile and has probably doubled or tripled at least since ! We were renting it at the time for USD 1,100 pm so prospective yield was 13%.

This is one of the advantages of new off plan property in that its easier to get clean title. Most of the land has been allocated by the Tourist Development Authority (TDA) to the developer and provided you are dealing with a reputable developer you should be ok.

Yours

Jeremy

Please note 1500 sq mtrs should have read 150 sq mtrs. I am not that rich !

Jeremy

We all Hope to be that Rich my friend

__________________
George Sabry
Co Partner
Real Estate Mart
The Ultimate Guide To Red Sea Real Estate Investments And Resale Properties
And Property Management Services

Hi Jeremy

Apologies for the delay in responding. Just returned from Tangiers. Theres a market that I think is still quite good with the ongoing business development on Tangier. Having said that I sometimes find myself in a school of one with regard to Morocco as everyone else seems to think that losing the Expo in 2012 has sunk the market.

I understand completely your comments re title etc. in the cities. If I started to look at urban developments they would definitely be off plan. In the short term however I guess I will be joining the Red Sea train as being simpler.

What do you think will be the timetable for non developer finance? My understanding is that the commercial lenders will be able to enter the market locally. Will that go hand in hand with developer finance allowing better leverage do you think? Other markets always show an upward blip on the back of mortgages so can only be a good thing.

Cheers

Rick