Egypt's Future as a Holiday/Residential Destination?

[Peter Mitry]

Few people can fail to be moved by the plight of the Egyptian people in their struggle to rid themselves of a repressive and corrupt regime and to seek instead a free democratic society which will give equal rights to citizens and, hopefully, a brighter future.

Unfortunately, history tells us that this will not be achieved overnight and many people will no doubt suffer further hardship along the way; I sincerely hope that this will not deter the thousands who are making their feelings known and demanding their rights. International Governments should also play their part in supporting the Egyptian people in their struggle and turn up the heat, both politically and economically, on the Mubarak regime to institute change.

It is however tragic that in so doing so many governments have advised their Nationals to avoid traveling to Egypt resulting in airlines and tour operators following suit. This has destroyed the tourist industry in Sharm, Hurghada and Marsa Alam and taken away the livelihoods of thousands of people who rely on this business to survive.

Hopefully common sense will soon return and the tour operators will realize that these Red Sea resorts have been unaffected by the troubles and are still great places to visit.

This conflict is not between Egyptians and their foreign visitors it is non secular and is directed solely at the government.

 

[CMChris]

It hasn't put me off and we're off there soon.

 

[Nefertari]

Hi,

However much people might want to continue visiting Egypt for holidays, if there is a perceived risk by our governments and the holiday insurance providers, we may not be able to go even if we want to.

Let's face it holiday insurers use any excuse to not cover you on the most sprurious of reasons sometimes.

forgive me but I hadn't started visiting Egypt til long after the massacre at the Valley of the Kings. I'm told that it did affect tourism for a while, but how long before things returned to normal then?

As you might know, i'd been looking for an apartment to buy up until the uprising. I too support the repressed people of Egypt, but as a money savvy person, I will not now commit to buying into Egyptian real estate. I don't think it will stop me taking holidays there, but maybe not until things have settled down a bit.

 

[bob69013]

well said peter things like this will not stop me visiting a great country and hopefully being a resident

 

[samui13]

Well said Peter, three trips planned by us this year (well Stew is having four!!). We cant wait to get out to Sharm, eat out and do things and start giving the locals a living

Lou

 

[CMChris]

Well said Peter, three trips planned by us this year (well Stew is having four!!). We cant wait to get out to Sharm, eat out and do things and start giving the locals a living

Lou

The locals need our support, we've had reports that they are all being sent 'on vacation' because no one is going there. Yet the Red Sea resorts have not had any trouble, even the FO hasn't added them to its list of 'Don't go'.

 

[dave2u]

problem is its the floating holiday maker that they are losing they see problems in cario and they go elsewhere. thomas cook reducing prices show the lack of demand.as there seems no end in sight at the moment we can expect a rough ride this year for rentals and any sales

 

[Alan Cockayne]

Sharm situation

The locals need our support, we've had reports that they are all being sent 'on vacation' because no one is going there. Yet the Red Sea resorts have not had any trouble, even the FO hasn't added them to its list of 'Don't go'.

My Hotel Tour Operators colleagues say things have slowed to 50% partly because the Russians are not visiting. Probably not their season... Those hotels that have bookings are doubling up to fill the best locations, letting staff from closed hotels go back to their families and to support the demonstrations.

However, CNN are filming in Soho (Sharm) on Saturday 9pm to give a better scenario. I suppose those working will do their best to continue entertaining guests as they realise, Brits especially, are their bread and butter.

The new season's guests will have to be a little more careful of the vagrants, opportunist street traders and construction workers who will be desperate for cash and may resort to some extremes of hassle to tourists. Keep your money safe in your pockets and report any rough treatment to your hotel or residential management.

That applies to Hurghada and Marsa Alam resorts too, so rest assured for the moment, Red Sea locations will be open for business as usual. The ball is firmly in the hands of what the Regime decides to do over the coming weeks. Let's hope the tour operators greatly reduce the prices in the interim.

Alan.

 

[Peter Mitry]

Let us hope and pray that the events unfolding in Cairo tonight will being an end to the current situation and the beginning of a free democratic society for the Egyptian people.....

 

[propertywatch1]

From what we now see on the news things are looking bleak now for egypt. reports are that the country is heading for a complete shutdown.

now is not the time to invest in any project that still remains unfinished. Only time will tell
what kind of inpact this will have on the property market.

Looks like there will now be huge delays in the construction and finishing of projects in and around Hurghada and Sharm.

not the time to be dipping your hands in your pockets and shelling out your hard earned cash, unless of course you go down the route of re-sales with good history behind them.

 

[expatlady]

Well, I for one will book my holiday to Egypt now. However, I see I have very little choice in destination, as my country FO have warned against going to Egypt, and most travels have been cancelled.

But I think now is the time to support Egypt...and its tourist-industry!

And yeas, I am also looking for property there...but that is no hurry

 

[Peter Mitry]

Hi expat Lady, hopefully governments will advise their airlines that all is OK soon so maybe we will see you in Hurghada?

 

[shilly]

The latest troubles in Egypt will have a ripple effect in the country.

Let us also hope that not only the government has been removed but the corrupt practices that some developers use on either potential or existing owners is also taken away

If some potential owners knew the full background they would certainly be put off buying

The last thing anybody wants is to have their dream destroyed by developers who suck every little last penny out of you.

The Red Sea is a stunning and amazing area lets keep it that way and make sure the black clouds do not taint it

 

[Peter Mitry]

There are already signs that airlines are planning to returning to Egypt in the very near future. Many people will be watching closely to see that, after the departure of Mubarak, the planned route to democratic elections follows swiftly.

There is however a danger that the newly 'freed' Egyptian people will begin too soon to push for higher wages and better working conditions. This could lead to industrial unrest, more mass protests and more bad headlines from the world media.

Let us hope that, having won a momentous victory, the people will show some restraint as it will surely take some time for any new government to deal with the massive cost of the revolution and to rebuild the economy in order to give everyone a better life.

Central to this will be to get the tourist industry back on track and the last thing we need right now is negative media attention from the World press.

 

[Derik Clothier]

Peter Mitry?

Hey Peter do you sell appartments of plan or do you need the developer to finish the stairs so you can show clients around. Very confusing comments I have read about you.

 

[Peter Mitry]

We do of course sell off plan and usually we would only sell finished apartments with full due diligence. The comments you may have read on some forums were written by someone who was not a client of ours but whom we tried to help. However, in that instance the property had restricted access to the fourth floor where the apartments in question were located. This is because the stairs needed completing and there was no handrail; the person in question was required to pay a further £1500 by his Developer to complete this work which would then have allowed us access. The apartments concerned are what is known as 'Egyptian finish' which means that they are not complete inside; they require plastering, windows and tiling.

This person accused us and his lawyers for trying to overcharge him when quite simply we passed on the quotes from his Developer.

The lawyers had already established that this person had no legal claim to any part of the building and yet, using their best endeavor, they persuaded the Developer to assign two top floor apartments. You can imagine that under the circumstances the Developer did not feel under any obligation to quote any cheaper for the work.

At no time has the recipient of these two flats paid any money to our company, nor has he paid the legal fees of the lawyers who helped him to secure the two units, and yet he has continually published negative posts about us on many property related websites. I believe that he has been banned from Property Community.

 

[propertywatch1]

There is no easy way to put this ... in the short term egypt has no future in the property business. pre-construction at this stage is a no go area.

How can Agents guarantee Due-diligence after the recent events when this was a gray area before.

 

[Alan Cockayne]

Guarantees ???

There is no easy way to put this ... in the short term egypt has no future in the property business. pre-construction at this stage is a no go area.

How can Agents guarantee Due-diligence after the recent events when this was a gray area before.

In the Arab world there are no such guarantees. Lots of business is done on handshakes and promises, so we shall have to wait and see how these Egyptian promises pan out.

It will all depend on who will run the country after the election. If it's the same administration and judiciary then it will be a wasted opportunity to get this industry cleaned up.

Alan.

 

[Peter Mitry]

There is no easy way to put this ... in the short term egypt has no future in the property business. pre-construction at this stage is a no go area.

How can Agents guarantee Due-diligence after the recent events when this was a gray area before.

After many of the high profile screw ups both in Hurghada and Sharm I do understand your cynicism. However, as agents we can and do carry out extensive research on the handful of Developers whose projects we offer. We introduced our procedures three years ago but inevitably one or do Developers slipped through the net.

I am pleased to say that in the past 18 months the key constructors we are dealing with are all ahead of plan and no client has lost money.

This is not the same as other countries offering bank guarantees but even these are not foolproof. Banks may indeed guarantee a project will be completed or that investors will get their money back but this can often take an awful long time.

Investing in anything is not foolproof; it is always a question of measuring the balance of probabilities before making a decision. However, one thing is certain, few other investments have the potential to produce income and capital growth in the way that property does; it is however critical to study the track record of the Developer very carefully and never to buy without using a good lawyer. If you don't know one, forums like this are a good place to seek recommendations.

 

[Alan Cockayne]

We independent promotors agree entirely with your comments Peter.

But Propertywatch is correct in that the majority of investors will not be aware of the pitfalls and irregularities of the majority of projects on the market, that are being pushed down their throats to generate quick cash, or indeed to deprive them of it.

We hear of double-selling.... Only this week a long-time owner witnessed his apartment in British Resort being sold to another American in his absence by an Armenian company. Just as well he double-locked and made it secure.

Multi-partnership by nationals, owning sections of projects creates a minefield when it comes to validating the register. We know many with no building licenses, or failure to update licenses, all resulting in late or no delivery. Yet buyers are constantly having demands for payments.

We may not sell or promote these projects, but they are the ones we read about on forums and its too late to go back. Yes we have a long wait for compensation. That's the point, it shouldn't be happening.

We know the Secret Service and Interior Police systems will need purging after these riots and deaths. So shall the ambiguities and scandals of the Real Estate industry be called to account in due cause.

Meanwhile, all we can do is try to educate the next generation.


Alan. Coralife-Style Consultants.