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egypt property to be best performer in region

News Posted On: 09 June 2010

International bank Credit Suisse has said that Egyptian property stocks will outperform all other countries in the Middle East and North African Region (MENA) in the next 12 months.

The growth will come from “strong domestic housing demand recovery that should filter through developers’ sales figures this year, especially on the middle income segment,” Dubai- based analyst Ahmed Badr wrote in a report.

The Egyptian housing market remains a cash market that offers stable outlook for pricing compared to the Gulf, Badr wrote. The analyst expects “strong growth potential” in Cairo’s commercial property market, where occupancy rates remain at almost 100 percent, he wrote.

Egypt is also becoming known as one of the top residential markets in the world, with private investors flocking to the emerging Red Sea Riviera, to places like Hurghada and Sharm el Sheikh, where prices are low and rental demand high.

Properties in Hurghada can be purchased from as little as £10,000, and tourism to Hurghada is among the fastest growing in the world, having continued to grow even throughout the credit crunch. This combination leads to many developers offering guaranteed rental yields of 10% and more.

Much of the Red Sea Riviera is protected by the government as part of a nature reserve. This only adds to the investment potential because it will apply upward pressure on prices as demand continues to rise even when supply growth is forced to slow.

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