Is Egypt the new Dubai?

[Nicholas Wallwork]

The last few months have seen a ground swell of support for the Egyptian property market where there are striking similarities to the Dubai property market of the early days.

The government is playing a very hands on role, the vast majority of transactions are cash based, debt levels are very low and more and more tourists are visiting the region.

Could Egypt really be the new Dubai?

 

[Ery]

Of course Egypt is so far from Dubai but it has a huge potential to grow up. It atarcts the tourists for low prices. On the other side the Sahl Hashesh project will be close too much with Dubai’s facilities. It is realy worth place to invest. Hope the developers will fulfill all their promices about infrustruture in this marvelous place.

 

[Alan Cockayne]

On the contrary, Dubai will never be another Egypt.

One has to remember the original Egypt was about Cairo and the Pyramids, Nile cruises and The Valley of Kings with all its archeology and history.... But Dubai will never have the natural beauty that the Red Sea and its coral reefs, discovered by the diving-tourists in the mid-eighties. That's the real jewel in Egypt's crown.

2000 km of coral-reefed coastline, 12 months of sunshine and history just 2 hours by coach from Hurghada or Safaga.

Sorry Dubai... Your plastic city, with its delusions of grandeur, can't access my plastic cards. Give me nature every time....

Let's hope the Egyptian authorities look after its natural heritage as well as its historic one.

Alan Cockayne (ex dive-boat captain)

 

[Ery]

Alan, 100% you are right. Just I hope than community of foring people will help to Egiption society to grows more quickly because some times it is realy so hard to communicate.

 

[dave99]

Who wants another Dubai ?

Not been to Dubai yet but I hope that the same sort of massive over development never happens anywhere in Egypt - it would spoil most of what people like about this amazing country.

The last few months have seen a ground swell of support for the Egyptian property market where there are striking similarities to the Dubai property market of the early days.

The government is playing a very hands on role, the vast majority of transactions are cash based, debt levels are very low and more and more tourists are visiting the region.

Could Egypt really be the new Dubai?

 

[rossantony]

new...

Dubai is the new Constantinople.

The place where business and pleasure mixes.

Egypt is the new Spain

 

[propertastic]

I don't see too many similarities between the two markets.

When I started reporting on property at the end of 2006, I was already of the opinion that Dubai had all the signs of being a bubble in the making due the fact that most of the properties were being bought by speculators rather than people who actually wanted to live there themselves.

The rapid growth of the past few years was caused by an imbalance in supply and demand. In the early part of the decade, there were more foreigners coming to live in Dubai than there was good quality housing for them - so prices rised rapidly.

This led to a vast amount of housing being built which has now led to supply of property exceeding demand. Add to that all of the problems caused by the credit crunch and the bubble has well and truly popped.

The thing is that there really isn't so much to do in Dubai, in my opinion. There's not so much culture there and beach culture is not the same as it is in Egypt. And it's not a cheap destination if you like to go out and party.

Egypt's resorts are attracting a different type of buyer. People are buying mainly as holiday homes, and some are buying for places to spend the winter. Sure there are some who are buying as investment only, but nowhere near to the same extent as in Dubai.

People are often surprised at the amount of building going on in Hurghada, but it is really a drop in the ocean compared to how Dubai has transformed over the past decade.

So I would say that Egypt could be better compared with Morocco or Turkey than Dubai,

 

[hurghadasun]

egypt will never be the new dubai unfortunately as there are no morals or ethics with the majority of construction companies building their as we have found to our cost

 

[Peter Mitry]

I agree; there may be the potential for individual developments to be grand and palatial, a bit like Dubai, but Egypt is a very different market. Year round sunshine, virtually no rain, unspoiled beaches, fabulous diving and even with the current devaluation of the pound and the euro against the Egyptian pound, it is still great value. Most important of all it is the only destination which ticks all of these boxes and is only five hours away from most European capitals.

 

[Alan Cockayne]

problems ?

egypt will never be the new dubai unfortunately as there are no morals or ethics with the majority of construction companies building their as we have found to our cost

I take it you've had some bad luck with your property.

Would you care to enlighten me?
I try to help my clients understand the pitfalls before they pay out lumps of cash to buy property. Was it the building standards (highlighted in one of my previous threads) or the payment proceedures or contractual?

Maybe it was the apathy in failing to complete the project which is happening quite more frequently in the present economic climate.

Until we get these four issues sorted inside Egypt, there will always be that doubt as to whether Egypt is the best place for Europeans to invest.

Alan Cockayne (Coralife-Style real estate consultants)

 

[Alan Cockayne]

Alan, 100% you are right. Just I hope than community of foring people will help to Egiption society to grows more quickly because some times it is realy so hard to communicate.

I'm not quite sure what you mean Ery.

The Egyptian owners have no problem in making their homes in these complexes. If they want to communicate and live in similar standards as Europeans they will. If they like our standards it is not hard to simulate them. But I've found them lacking in the area of cleanliness and hygiene around their homes.

I have it on good authority, during their holiday breaks, apartments and hotel rooms are left in disgraceful conditions. Sometimes needing refirbishment. I live there. I've seen it. There is no excuse for attitude.

Integration means two way initiatives. As Europeans we do our very best.

Alan.