According to the Association of British Travel Agents, the North African country is likely to attract a significant number of UK tourists in 2008. As a result, people who let out property in hotspots such as Sharm el-Sheikh could find their residences are subject to strong demand this year.
This could have the positive consequence of boosting its value and allowing investors to collect higher rental returns. 'The growing appeal of Egypt is a reflection of changing habits in consumer's destination choices. People are becoming very demanding in their holiday choices. They want to be a bit more adventurous,' said spokeswoman Francis Tuke.
Egypt was recently recommended to foreign property buyers by the BuyAssociation website, which said it was one of the most popular winter sun destinations among Britons.
Tony Blair, the former British Prime Minister has holidayed several times in Egypt and sports stars also find the country appealing. Top boxer Joe Calzaghe has amassed a portfolio which covers several countries including Egypt, a location he said he 'loves'
He was drawn to Egypt by a number of factors, such as its good weather and highly affordable houses. 'Property prices are low compared to many other sunny locations so I thought I'd go for it,' he said.
Foreign property purchasers in Egypt see now as the time to enter the market while Egyptian property prices are suitably low high potential returns on investment are in the offing. Target areas tend to be on the Red Sea resorts in preference to many other areas and this has been reflected in the impressive property price increase of around 25% per annum.
Second homes are equally popular as Egypt grows in popularity amongst the international jet set who regard Egypt as a highly appealing and exotic medium haul holiday destination.
Beachfront apartments start at around £30,000 and, with capital growth of around 20% per annum, it is clear to see why many overseas property buyers are focusing on Egypt for their next investment. In some resorts studio apartments are starting at just £19,964 – the price of a new family car in the UK – with three bedroom apartments at £60,000.
