One of the most established UK overseas property websites Homesgofast.com has seen searches and enquiries decline sharply for Egyptian real estate since the unrest. However it is anticipated that Egyptââ¬â¢s Red Sea resorts will soon see a return to its status as a formidable emerging market
Homesgofast.com director Nicholas Marr ââ¬ÅEgypts emerging property market and the Red Sea resorts in particular have attracted international investors in their droves. Itââ¬â¢s obvious why Egypt has now seen a significant drop in enquiries . Investors are clearly sitting on their hands until they can see a clearer picture of the political situation in Egypt. President Mubaraks depature will be seen by potentail buyers as a step in the right direction ââ¬Â
Emerging-market investors are much more sensitive to inflation and thatââ¬â¢s part of the reason why investors are so wary of the sector against a backdrop of political unrest.
Practice leader of Frontier Strategy Groupââ¬â¢s Quantitative Analytics ââ¬Åpolitical instability and rate hikes, inflation is the bigger threat to emerging markets, although it is not an imminent risk,ââ¬Â
Sam Wilkin, associate director of global analysis firm Oxford Analyticââ¬â¢s Consultancy Practice. ââ¬ÅRunning away from emerging markets means youââ¬â¢d be unable to participate where most global growth is going to happen in the next 10 to 20 years on out,ââ¬Â
The Red sea resorts attracts investors for numerous reasons including:
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Low prices from ã23,000
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Year round sunshine
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Booming tourist industry
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Direct access from the UK
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Low cost of living and maintenance costs
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No capital gains and inheritance tax
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Located outside the Euro zone
The Red Sea resort of Sharm el-Sheikh popular with overseas buyers and tourists now also appears to be the bolt hole for President Hosni Mubarak who departed his leadership on Friday.
