Could Egypt’s liberation help it’s property market?
Property experts have shown little panic despite Egypt’s recent revolution. Whilst there has been unrest in Egypt, many believe it will actually help the property market and investors are keeping a close eye on the country’s exchange rate.
News agency Reuters has reported that the step towards a more democratic model promotes capitalism and as resources are distributed more freely, there is greater sovereignty and critically there is greater focus towards ownership of property and businesses. Now that the regime has moved out and the creation of a more democratic system is underway, investment looks even more favourable.
“There will be democracy and transparency, these changes will lead to more economic growth. It’s a great opportunity to invest in Egypt” said Larry Seruma, managing principal at Nile Capital Management.
While there is still a degree of uncertainty over exactly how Egypt’s democratic revolution will pan out, market intelligence agencies certainly point to good scope for future growth in the tourism and property markets. Many savvy investors see this revolution as a fantastic opportunity and are keeping a watchful eye on early movement.
Tarek El Saadi, president of Sharm-el-Sheik real estate, doesn’t believe the property prices will fall as they are already low due to the world’s recession. He does however agree that the Egyptian pound will be more beneficial to buyers, “Investors will get 10% more for their money. I believe things will recover soon. Everything will be more stable in three months’ time.”
The currency movements in Egypt offer a huge advantage to investors and property professionals are expecting a considerable rise in prices when it is all over. Investors have seen this as a good opportunity to buy a property at a rock bottom price.
Web searches and enquiries for properties in Egypt have seen a decline after the recent conflict, with many property buyers waiting to see what the political outcome will be. According to some property experts in the region, this could see the red sea resorts of Hurghada and Sharm-el-Sheikh having a short boost. Big travel operators are offering their customers the chance to change their Cairo and Luxor flights to Sharm-el-Sheikh or Hurghada instead.
Businesses in the red sea resorts have seen little affect on property sales despite the countries recent unease. The prediction that the Egyptian pound will decline by at least 10% will make Red Sea property and the rest of the country a greater proposition to the overseas investor.