Property in Egypt

The Brief

La Place is a small off-plan resort-style apartment complex in Hurghada Egypt. With sudios available for £10,500; the development offers excellent value for money and serious investment potential. The development consists of just over 30 top-class apartments, with studio, 1 and 2 bedroom units available.

The Property in Brief

• High quality finishes include polished ceramic floors
• Centralized satellite television and internet to all apartments
• 5 minutes walk to beach
• Sea-views from most apartments
• Large array of leisure facilities, see below

The Property in more Detail

Although La Place is acclaimed for its affordability and value for money, it is not because the developer is skimping on build quality. Each apartment features Polished ceramic floors, Tiled kitchens and bathrooms, double glazing, lockable internal doors, sockets for internet and telephone, fitted kitchen (Granite) and Ideal Standard bathroom suite with marble vanity shelf and extractor fan. All this of course on top of the basics of full electrical installation including power points and light switches, sounds obvious but people have been burnt before.

On top of the well finished apartments La Place offers an impressive range of amenities and leisure facilities, including: swimming pool, gymnasium, sauna, Jacuzzi, and communal rooftop terrace with barbecue, as well as a pharmacy and laundry on-site.

The Opportunity in Brief

• Low price equals high rental yields and room for growth
• Expected 20%+ growth on completion
• 10% net rental yields forecast

Egypt and Turkey are growing into the world's top two tourism destinations, and you can confirm that via various news sources not just those with a vested interest in the markets. As Egypt grows in popularity as a country, Hurghada and other locations along the red-sea coast grow into the most popular destinations within. A big factor in their popularity with tourists is how cheaply you can holiday there, as accommodation rental rates haven't quite caught up with the quality of resort properties that are now available.

The lowest holiday rental price we could find for a studio was £99 per week. Egypt has a longer season than many places because of its predominantly warm climate. But even if only 20 weeks are occupied, which for a property ideal for couples at such a low rate should be the minimum, the gross rental yield is 20%, net can only be calculated by the individual by subtracting what they paid for marketing on top of taxes. On top of that, expected growth on completion is 20%, and annual growth will be rapid when the global recovery is a memory.

Location

La Place is located in the south of Hurghada's up-coming Intercontinental area, close to some of the town's most luxurious hotels including: the Intercontinental, Steigenberger and the Hilton Resort. The Touristic Centre's main promenade being extended right down into the area has been of massive benefit to its tourist potential. It is a perfect location for anyone wanting a peace & quiet, yet it is also within walking distance of all of the main facilities that Hurghada's Touristic Centre has to offer.

The development is less than five minutes walk from Public Beach 9. Offering excellent facilities while rarely being over-crowded; public beach 9 is one of Hurghada's best-kept secrets. The development is also a 10 minute taxi ride from Hurghada International Airport.