Invest in Egypt for a Fraction of the Cost!
The Telegraph and the Guardian newspapers recently ran stories about the dramatically rising popularity of Egypt as a holiday destination among Britons. The rise has been attributed to a unique combination of factors such as the amount of investment the nation has consistently been ploughing into the upgrading and promotion of its tourism product, and the fact that Egypt lies firmly outside of the expensive eurozone. The Foreign Office and ABTA have jointly reported that there has been an increase of almost 40% in the numbers of Britons choosing Egypt too, proving that this is a country with a rapidly advancing tourism market.
Tourism in Egypt has become a leading sector for the nation’s economic development, and as a result the authorities are working closely with the private sector to ensure that everything is in place to advance the appeal of the industry. So far this year they have announced that tourism businesses will not have to contribute the usual fee that goes towards international promotion of Egypt, this is to ensure that all remain profitable if the global economic situation has an impact on Egypt. Meanwhile, the country is continuing its heavy international promotion with the launch of ‘Visit Egypt 2009’ in India for example. Egyptian tourism officials believe that soon-to-be-released statistics will show almost a 20% increase in visitor arrivals in 2008 compared to 2007, and the World Travel & Tourism Council predict that Egypt’s Real Travel & Tourism activity growth over the next 10 years will average at least 7%.
Clearly these are all signs that the time is right for a closer look at what Egypt has to offer the property investor and real estate consumer, because where the tourism market leads, so a nation’s property market tends to follow. Naturally as an emerging destination the nation’s property market was starting from a very low level price-wise, and this has been helped by the fact that properties are not sold in euros. The property market has been further boosted by the increase in cheap flight operators arriving in Egypt, by the improvements in transparency in the ownership process and because of the potentially strong rental and capital appreciation returns. In a bid to further fuel interest in the market, Egyptian developers have been particularly aware of the need to diversify the methods by which purchasers can make an entry into the market as well. This has led to the most astute developers considering fractional ownership schemes.
Fractional ownership is a legal framework that allows for the division of ownership of a property into shares, with shares being sold at a greatly reduced price compared to the full ownership cost. Someone who therefore buys into a fractional property actually purchases a specific right to use that property for a fixed period of time annually, but at a much cheaper price than if they had to buy that property outright and maintain it. Buyers have the advantage of owning a stunning home abroad for the period of time that suits them, and having a home that is fully managed by a professional team year round; meaning that the owners arrive for their fixed weeks’ occupancy to a property that is clean, properly maintained and ready for their occupancy. This particular method of purchase is increasing in appeal internationally, with a report in the Telegraph highlighting how the trend initially grew in appeal in America and has now become hugely popular on this side of the pond. Buyers benefit from the fact that when they are not using the property they are not paying for it, yet at the same time the property remains well looked after and in a pristine condition, ensuring that the underlying value of it, and in turn the owner’s share of it, can rise in line with market conditions.
Not all developments are accepted for fractional ownership approval however, a development has to be high grade and one fractional ownership consultancy admits to having to turn down 85% of applicants because their developments and sales personnel are just not appropriate for the model. Therefore the Palme Royale five star resort near Hurghada in Egypt, which will be managed by a leading Swiss hotel chain, had to prove itself in order to become one of the premier fractional ownership offerings in Egypt. This development stands head and shoulders above many others because of its superior properties and the amenities it boasts such as a private shopping mall with designer outlets, five star restaurants, health spa and beachfront setting. Properties available for sale include apartments, townhouses and hotel suites from £65,378 and Experience International has not only secured the right to sell these properties on a fractional ownership basis but at 10% discount on pre launch prices. For more information please contact Experience International on 0207 321 5858 or visit www.experience-international.com.