2010 is shaping up to be a very good year for the Egyptian property market, with a large number of agents reporting substantial increases in sales in the first part of January. Overseas property analysts had predicted that 2010 would be a good year, and that sales would start increasing rapidly from the middle of February. However, no one could have predicted the immediate flurry of sales for Egypt real estate, all of which bodes well for the market in 2010.
 
Analysts have of course, analysed the surge in activity and say it is because of one of two reasons, but more likely it is a combination of the two:
 
Some analysts believe Egyptian property market has seen such rapid sales because the credit crunch has reduced people’s buying power, with many people forced to buy with cash because they are unable to get credit, thus making Egypt real estate a favourite because of the low property prices in the country.
 
Others belief that the flurry of sales comes from the level of research being conducted by today’s overseas property buyer; they say that the sales being completed today are from those who concluded their research either just before, or during the Christmas break, who waited till after the break to snap up their carefully chosen properties. The truth is that neither is right or wrong, in reality it is likely a bit of both.
 
It is true that international credit markets are severely restricted compared to the boom times. Whereas in 2007 many — if not most — people could secure 100 or 200 thousand pound mortgages to buy a second home, with their first home as security, now, those lucky enough to be able to secure finance will be looking at receiving a considerably smaller amount.
 
Egyptian property offers some of the lowest prices and the best value for money in the world of overseas property — for those who know where to look. So of course it is going to become popular with those investors with an eye on value for money.
 
However, in 2007 Egypt was considered a high risk market, but with the level of research the current buyer is conducting risk can be minimised. Therefore no market is really high risk, and this is also undoubtedly playing its part in the current rush of property purchases.
 
If this strong start to the year continues, and there is nothing to suggest it won’t, then 2010 is indeed going to be a very good year for the overseas property industry. This is especially true for the short-haul low budget hot spots like Egypt, where natural infrastructure such as the beautiful Red Sea is a consistent attraction for millions of tourists worldwide.

Mark Burns works for Offplanworld.tv, a UK based real estate consultancy specialising in investment off-plan property abroad and who offer a wide range of property for sale in Egypt.

Article Source:http://www.articlesbase.com/real-estate-articles/2010-looking-like-a-good-year-for-egypt-real-estate-1774311.html

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