08 | INDUSTRY
NEWS By Amit Katwala
EGYPTIAN property professionals have remained calm in recent weeks despite the country’s regime change and state of civil unrest, and they are monitoring the country’s currency exchange rate carefully. Tarek el Saadi, president of Sharm-
el-Sheikh real estate, told OPP: “Egypt is dependent on tourism, it’s one of our biggest sources of income. We can’t afford to let it fall – that would collapse the economy.” El Saadi doesn’t think property prices
will fall severely because they are already at a low ebb due to the global recession. However, he believes that currency market movements will provide foreign investors with an opportunity. According to El Saadi “the Egyptian
pound will be more favourable … investors will get 10% more for their money,” adding “I believe things will recover soon. Its like a tsunami or a hurricane – it will pass. Everything will be more stable in three months’ time.”
www.opp.org.uk |MARCH 2011 Egyptian revolution may help market
Sharm El Sheikh may well be boosted in the short term, according to some in the region, and a fall in the currency exchange rate should help to make Egyptian property even more attractive to overseas buyers. Speaking exclusively to OPP, Lee
Buried treasure | Egypt’s market could be resurrected by attractive currency rates
Peter Mitry, CEO of Egypt Real, agrees. He told OPP: “The Egyptian pound has fallen 10% against Sterling in recent weeks, and it could go even further. There’s a huge benefi t if paying in an overseas currency.” “When this is all over and there is a
democratically elected government, I think we’ll see a dramatic rise in prices – savvy investors should get in now at rock bottom prices.” Mitry said: “We’ve had two cancelled purchases in the last few weeks, but
we’re not seeing a large number of cancellations.” However, UK-based overseas property website Homesgofast. com reported this week that it has “seen searches and enquiries decline sharply for Egyptian real estate since the unrest” began in the country. According to
Homesgofast.com
director Nicholas Marr “investors are clearly sitting on their hands until they can see a clearer picture of the political situation in Egypt.” Tourist numbers to resorts like
Ward, sales director of Pioneer Property, said: “Big travel operators like Thomas Cook and Thomsons are now offering tourists who were planning to go to Cairo or Luxor the option of switching to a holiday in Sharm instead. I know it sounds strange, but the troubles could well end up driving even more business to Sharm.” Ward, whose agency has been in
business in Sharm El Sheikh for more than seven years, told OPP “it really is business as normal here and we will be watching the exchange rate on the Egyptian pound very carefully.” Ward can also see the Egyptian pound declining by at least 10% in the coming month … “maybe more.” And when it does happen, “property here will seem an even better buy.”
Cyprus industry urged to clean up its image
CYPRUS Interior Minister Neoclis Sylikiotis has called for the island’s property industry to improve its global image by resolving the title deed fiasco that has damaged its reputation in recent years. He says urgent change is needed
to encourage more people to view the Cyprus property sector as a good place to invest their money. The number of overseas property
buyers has declined over the past three years, partly because many people who have already acquired homes in
Cyprus are still waiting on their title deeds – in some cases up to 10 years after purchase. According to an angry Sylikiotis,
“this matter has, not without reason, challenged Cyprus real estate in recent years.” “With the enactment of new laws,
the burden of responsibility will shift to the shoulders of us all; the relevant town planning and building authorities, local authorities, business developers, engineering consultants and buyers alike, for preparing and
submitting all necessary documents for transfer of deeds.” The politician’s call has coincided with calls for the immediate establishment of a Property Commissioner in Cyprus with executive powers, based on those given to the regulators of industries such as telecoms, power and transport. Key issues that the Property Commissioner would be asked to tackle include the need for new laws on Title Deeds, as well as ongoing fears over mortgage facilities provided to buyers with a poor credit history, a tactic used
SEOUL SEARCHING ABROAD
INVESTMENTS by Koreans in overseas property boomed by more than 170% in 2010 according to the latest statistics from Seoul’s fi nance ministry. The total value of cash invested in real estate in other countries came to about US$612 million last year. The average value of each overseas property bought jumped 61% to US$689,000.
to help keep developers afl oat. Nearly 130,000 properties in Cyprus are still awaiting the issuance of their Title Deeds. Buyers can wait for at least 7 years to get their deeds.
Image problems | for Cyprus property SPAIN PAIN NOT ON PLAIN
AVERAGE residential property prices in Spain fi nished January 5% down year-on-year. They are now almost 20% below their peak values of 2007, according to the Tinsa index published this week. It was Spain’s coastal regions that performed worst says the report, with prices down 8.4% year on year and 27.2% since the 2007 peak.
NEWS
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