AUGUST 2010 |www.opp.org.uk


PEOPLE


Missed Opportunity In The Alps? Dear editor,


I’ve just returned from a summer visit to the Alps to check progress on the new leaseback developments at Avoriaz, and it struck me that many agents are selling Alpine investments short. The focus is entirely on the


ski season, which covers at most 18 weeks of the year. While I don’t deny that the exhilaration of on- and off -piste skiing is one of the main drivers for clients to invest, the decision becomes easier if we bring in the concept of Alpine summer holidays. When I arrived in Morzine in early July the whole town was given over to a


mountain biking competition with displays in the town square, an ‘animateur’ in charge of events and side shows to keep the whole family entertained. There are mountain biking events across the region from May to September including the World Championships at Champery in late August. In the Morzine/Les Gets area alone there are six cross country and ten downhill rides from novice to expert level. There are kids zones and mini jump parks to let the youngsters get up to speed in safety. And then there’s walking and rambling. There are family treks like Le


Tour Des Alpages, intermediate walks like Le Tour De Golf and expert level challenges like Le Tour Du Plateau De Loex. The brave can try some paragliding or white water kayaking, while a more leisurely round of golf is available at the Morzine-Avoriaz course. Add in the chateaux and museums and you can fi ll every day of a summer holiday with ease. The Alps in summer is a well kept secret among the French. I would urge any


agents promoting Alpine properties to international investors to make much more mileage from summer activities when you talk to potential clients. A few minutes web research on a given resort will give you all you need. Double the use means double the perceived value.


Graham Rowan, Director, Leaseback


Rescue plea for overseas buyers Dear editor,


www.reclaimyourdeposit.com is currently searching for international lawyers, reputable overseas property developers with unsold fi nished stock and estate agents looking to help their distressed purchasers. Having launched only a few months ago, several hundred investors have


already contacted us, many on developments that look like they will never fi nish. One option off ered is to switch a seemingly ‘lost deposit’ to a ‘gifted deposit’ on a completed development, with the reputable developer taking up the client’s claim using theirs and our legal and fi nancial clout. It’s a win-win situation for all as it moves the distressed purchaser from chasing debt to profi ting from a new home and gives the replacement developer a sale and a chance to reduce their unsold stock. It also helps the whole industry move on from the days of rogue developers and stagnant sales. The company off ers clients and developers a unique opportunity to benefi t from a desperate situation. If you are a lawyer, solvent developer with fi nished stock or estate agent operating in: Spain, Dubai, Bulgaria, Morocco, Florida or Egypt – please email info@reclaimyourdeposit.com to discuss how we can work together for mutual benefi t.


Sarah Drane


Director, Purple Cake Factory info@reclaimyourdeposit.com


LETTERS Your shout | 23


Best of the Blogs: The Treasures of Modern Egypt 2010


Every month OPP will select one or two topical blog posts. This month Peter Mitry, CEO of the Property Shop Inc and a Director of Egypt Real in Hurghada, gives his personal take on the current Egyptian property scene.


“As the world fi nancial crisis has escalated … the market has changed. Many investors and lifestyle buyers who previously relied on borrowing against rising property values in Northern and Eastern Europe have found sources of fi nanc- ing drying up as banks take a tougher stance on borrowing. In many parts of Europe this has had a catastrophic impact on the property market and all of those trades associated with it. But not in Egypt where traditionally the property market has never been fi nanced by debt … most people buying here know that at best they may get developer funding over the period of building a new project. This is normally restricted to an interest free loan over two to three years. A few Egyptian developers, anticipating a slow-down in sales, have introduced innovative low-cost loan schemes over up to seven years at favourable levels of interest. At the upper end of the market, where sales have slowed due to a lack of fi nance on an existing property at home, developers have held off on planned price increases or reduced prices. Some have ‘added value’ by including extras such as air conditioning, kitchens and guaranteed rental schemes. However a new and even more exciting phenomena has evolved; many de- velopers who in recent years have been forcing up prices by blaming the high cost of steel, land and cement have found themselves releasing land bought from the government at very low prices. Land they were hoping would bring rich rewards as prices escalated. This land is now being used for new projects which in some cases are being off ered for a fi nished price as little as £240 per square metre! Just a year ago the lowest prices for new build property was closer to £500 per square metre. The signifi cance of this was highlighted in a recent report by Savills. They pub- lished the top 35 locations worldwide in terms of price per square metre. The report featured Cairo as off ering the cheapest property at €1,425 per square metre. The cheapest coastal property was said to be in Mahe in the Seychelles at €2,460 per square metre! Had the research gurus done their homework a little more thoroughly they would have found - in fact - that Hurghada on Egypt’s Red Sea coast is off ering freehold, 5-star frontline beach plots from as little as US $900 per square metre. Even the world-class resort of Sahl Hasheesh has frontline properties from only US $1,450 per square metre. And, what’s more, both of these resorts are to be run by internationally- renowned Swiss Hotel chains to a standard comparable with the best in the world.


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