Red Sea Property One of Greatest Investments Around
Red Sea property is one of the great investment opportunities of our age. This is because of a perfect storm of converging factors, which would be far less important on their own, but, viewed for their combined effect are massive:
These factors are the low price of Red Sea property compared to that of other similar areas, the fact that most of the region is protected, so space for development is limited, and the fact that the red Sea region of Egypt is one of the fastest growing tourism destinations in the world. This means that people can buy Red Sea property now, when the market is young, and watch prices and rental yields grow as demand continually outpaces supply of both rental and for sale properties.
Further factors are converging to make this a time sensitive opportunity: the credit crunch has massively reduced people's spending power, and the strength of the Euro has made Eurozone destinations even more expensive to buy property and holiday.
Red Sea resorts bring forward the best opportunity. Resort development in the Red Sea area is a fairly new thing, and as a result buyers are currently being offered off plan opportunities. As with any off plan sale, especially in an emerging market like Egypt, these are currently being sold at a true discount to their market value -- with the addition of the word true because of the current below market value opportunities that are simply below the 2007 market value.
This gives people the opportunity to buy into something that can only rise in value, and annual yields. Firstly it will rise in value when the resort is completed and ready for use, at which point the property will be worth its true market value because the risk is gone. Then it will continue to grow in value as development land runs out. Yields, which are always higher on resort properties let to holiday makers, will also grow as the number of tourists outgrows the number of hotel rooms.
Red Sea property is currently also seeing increased demand as a result of the levels of research today's property buyer is conducting:
Because of the numbers of people who lost thousands of pounds buying overseas property for various reasons; today's buyer is no longer buying on the strength of anyone's word or the virtue of anyone's character. They are not only researching on the internet, and making phone-calls but going to the country knocking on doors and visiting building sites. This level of research pretty much eradicates as much risk as possible, meaning that Red Sea property is no more risky than that of an established market to today's buyer.
About the Author
Mark Burns works for Offplanworld.tv, a UK based real estate consultancy specialising in off-plan property abroad and who offer a wide portfolio of property in the Red Sea.
The Grand Resort, Hurghada, with www.RedSeaHolidays.co.uk
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