New airport in Egypt set to boost property market
Property investment in the Red Sea resort of Hurghada in Egypt is set for a boost after plans for a new terminal at the international airport were announced.
The Civil Aviation Ministry has signed contracts with a Saudi Arabian development group to construct the new terminal which will increase capacity from some 6.7 million to 7.5 million passengers annually.
Located five kilometres from downtown Hurghada, the new terminal will cover 92,000 square meters and the cost of construction is estimated at £66 million with completion scheduled for 2011.
With Hurghada international airport the primary gateway to the popular holiday destinations of the Red Sea coast the additional capacity of the new terminal can only spell good news for tourism and therefore the second property market, according to Steven Worboys, managing director of international property experts, Experience International.
‘Interest in the Hurghada area as a location for a second property ownership has been strong, especially as the region has developed into an established tourism destination in recent years.
The announcement of the new terminal is encouraging for property owners who will enjoy greater access to their own homes as well as capitalising on the opportunity to generate rental income from additional visitors to the area,’ he said.
His company has investment properties with a guaranteed rental income in Hurghada only 15 minutes from the international airport, where prices for studios apartments start at £21,000 and 6%. Price increases are expected in February.
Real estate consultants Jones Lang La Salle has tipped Cario as another good investment prospect in Egypt. It describes it as an excellent location at the crossroads of Africa, the Middle East and Europe. The report stated that there is an increasing demand for housing fuelled by the fact that there is a major shortage in all types of property.
‘For a growing range of investors, the deregulation of the real estate sector and the increasingly large and affluent middle class population make Cairo an attractive capital destination,’ it said.
It forecasts that although demand for real estate in Cairo will slow over the coming year, overall it will continue to increase, driven by both individual and corporate investment.
Egypt also works out as a good bet in currency terms as it is outside the eurozone. A report from the Post Office indicates that holiday makers should consider making a visit to the non euro zone country, only five hours flying time from the UK, to take advantage of the exchange rate.
Calculating which currencies have moved most in favour against sterling over the last year, Egypt was placed in the top 3 with the Pound strengthening against the Egyptian pound by 14%.