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egyptian tourism growth continues to boost property market

News Posted On: 26 April 2010

The strength of Egyptian tourism and its potential for growth have been testified to by Fly Dubai, the Dubai-based low cost carrier, which is to launch multiple new flights to Egypt from May. The airline will be flying thrice weekly flights to Luxor in Egypt from mid-May.

May will also see Egypt’s Alexandria become a hub for Air Arabia operations. The hub was due to open this month, but Air Arabia chief executive Adel Ali, announced the delay last week. 'We have yet to get final clearance to operate from Alexandria, and will not begin flights from the new hub this month as originally planned,' he said.

The Egyptian property market is shaping up as one of the hottest in the world. This is largely owing to the massive potential for tourism development, as well as the massive growth of the economy, which continued even during the financial crisis.

Private investors are favouring Hurghada, because it offers some of the lowest property prices in the world, against rapidly rising tourism in an area protected against over development. This gives way to massive rental yields, with many off plan developments offering yields of above 10% guaranteed.

Commercial investors outside the tourism industry are focussing on the major cities, where alongside the potential for massive growth in demand for industrial, retail and office-space, there are plentiful opportunities in the field of infrastructure development.

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