Five Reasons to Buy Sharm El Sheikh Property

1: Low Prices made lower by Currency Exchange Because Sharm El Sheikh is an immature emerging market, property is nothing short of cheap by western standards. It is made cheaper still for British buyers by the fact that the Egyptian pound is a very cheap currency, which has been largely unchanged by the weakness of GBP.2: Mostly Off Plan Property Means Discount Bonanza Again because it is an immature market, the majority of the property throughout the region on the international market is currently in development stage, which means most properties are for sale off plan. Off plan property purchases come with a certain level of risk and this is factored into the deal in the form of a substantial discount off the property’s market value on completion.Not only an immature market, Sharm El Sheikh is a tourism driven market, which means most of the properties are within resorts. Resort property is often worth up to 30% more than its off plan price when the resort is fully completed and operational.It is a commonly known fact that extensive due-diligence into the developer and development can minimise this risk, which means the discount equals instant equity and fantastic value for money.3: Opportunities for strong rental returns. Because of the rapid growth in the tourism sector, coupled with the low prices of property, and the fact that resort’s are being developed for sale to property buyers and managed rental, owners of Sharm El Sheikh property are currently earning rental yields of between 8% and 12% from holiday rentals. It is little wonder then that so many properties are offered with strong rental yields guaranteed for fixed terms.4: Massive Scope for Capital Appreciation Again, because of the low property prices, and the massive economic growth, as well as growth in tourism and foreign property investment, Sharm El Sheikh property is forecast to see massive capital growth in the next 10, 20 and 30 years. Similar resort-driven markets have been known to see considerable capital growth year on year, and with demand for accommodation in Sharm El Sheikh at an all time high, it is likely this demand will continue for many years to come.The economic growth alone will lead to rising property values; as affluence grows within the population, wages and the cost of building materials are likely to increase. This in turn will push up property prices in Sharm El Sheikh and the surround areas including Shark Bay and Nabq Bay.5: Minimum Risk of Over-Development Another benefit is that most of the region is protected from development, as part of government nature reserves and such like. This will lead to supply of property for rent and for sale falling short of demand, increasing rental yields and capital growth.