Published: 9th September 2013
Over the past couple of months one of the key questions on the lips overseas property investors has been how will the Egypt property market cope with the recent political unrest. The protests widely publicised across media networks throughout the world, it is understandable that many felt uneasy about the country's long term economic prospects.
However, the short-term political unrest does now seem to have passed, and although we are still in an embryonic stage of the new political economy, the signs are good for the future. One of the key issues for investors in recent years, had been a lack of transparency throughout the Egypt property market, and with the recent changes towards democracy now suggesting a greater level of accountability through the system, many are feeling increased confidence towards the Egyptian system.
This confidence in the Egyptian economy has been mirrored in the performance of the Egyptian stock market, which went so far as to ceased trading on 27 March due to price fluctuations. As a result of the recent calm, the Egyptian stock market has now begun to perform strongly, showing signs of sustained recovery which undoubtedly bodes well for the future.
The next test of the Egyptian economy comes with the Parliamentary elections which are due to be held this September. With the Supreme Council of the Armed Forces stating that they will look to lift the emergency laws which are currently in place prior to the elections, and increased confidence seems to be seeping its way through the Egyptian economy.
As we said earlier, it is undoubtedly early stages in what many see as the new Egypt. However, the reasons for the optimism and high levels of investment in property in Egypt prior to the rest are undoubtedly still true. Huge levels of tourist visitors are still due to visit the Red Sea resorts including Sharm El Sheikh, Hurghada and Marsa Alam this year, echoing the trends of tourism growth in recent years.
Whilst the unrest did have a short-term impact on the demand for property in Egypt, the unease amongst investors now seems to have passed and many people seeking to buy property in Egypt again.