new economic stimulus to increase sales of egyptianproperty
News Posted On: 14 January 2010
Egypt's government will soon propose a third economic stimulus package totalling 11.2 billion Egyptian pounds ($2.05 billion) to parliament, Prime Minister Ahmed Nazif said on Tuesday.
'After we consult with the Shura Council (upper house of parliament), we will present a third stimulus package worth 11.2 billion Egyptian pounds to the (People's) Assembly (lower house),' Nazif told parliament.
If ratified; this stimulus will bring in massive inflows of foreign investment into Egypt, not least by increasing foreign purchases in Egyptian property.
Despite the fact that we are in one of the worst global recessions the world has ever seen, the Egyptian economy is still growing strongly. Official figures have yet to be released, but the estimate is that the economy grew by around 4% in 2009. The International Monetary Fund, known for its bearish forecasts says that this will increase to 4.5% next year.
The services sector is a large driver of that growth, and also the largest segment of the countries gross domestic product. Within that it is predominantly tourism doing the driving. According to the Association of British Travel Agents tourism from Britain to Egypt is growing by between 20-25% per year for the last few years, and 2009 was predicted to be a bumper year for British tourism because of the strong Euro, but again, official figures haven't been released.
The massive tourism growth, coupled with the low prices of Egypt property, make gross yields of over 20% a reality. That is why there are currently several properties for sale in Egypt with guaranteed yields of 10 and 12%.
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