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rEal EsTaTE InvEsTmEnT In EGYPT an InternatIonal property ‘hot spot’. egypt is seen by many as the likely property invest-ment phenomenon of 2008 / 2009. the country is rich in culture, enjoys a wonderful all-year-round climate drawing in tourists from all over the world – tourism leapt by a massive 22 % in 2007. property prices are very affordable yet rental returns are pro-portionally high providing even the novice investor with a lovely second home to enjoy any time of the year but also a very sound opportunity to generate good rental yields. In addition the very diverse nati-onality spread for prospective buyers, (egypt is very attractive to the british and Irish, scandinavian, russian, Italian and indeed the Us and south afri-can markets) provides increasing demand for pro-perty which has naturally resulted in a very healthy, double-digit, increase in property values over the

last few years and with exciting forecasts for fu-ture years.

much of the recent development has focused on the red sea where tourism is at its peak and where the beautiful coastline provides safe bathing, fabu-lous beaches and of course access to some of the very best diving in the world.

marsa alam beach resort is, as its name suggests, a frontline development with its own pri-vate beach and coral reef. It lies just 45 km south of marsa alam Intenational airport and just 20 km nor-th of marsa alam city. marsa alam Intenational air-port can be reached via london and manchester airports and is also served by many other european destinations.

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locaTIon red sea / marsa alam Until very recently, marsa alam was a small fishing village in egypt, on the west coast of the red sea and owes its early popularity to the fantastic snorkelling and diving available, in fact the whole of the coastline is one huge reef of exceptional quality. however, it has rapidly increased in popularity, and since the opening of its International airport back in 2001, it has started to become yet another favourite holiday destination on the red sea riviera. most in-formed observers believe that it is destined to be-come as popular a resort as sharm el sheikh and hurghada, within the next few years.

marsa alam is located on a ‘t-Junction’ bet-ween the red sea coast road and the road from

edfu which sits on the nile about 230 km inland and was once a trade route between the nile valley and the red sea. marsa alam also has some inland attractions, such as the emerald mines and the temple of seti I at Khanais. luxor is about 230 km distance and can be enjoyed on a day excursion. average temperatures during the winter months (october to march) range from 18 to 35 degrees celsius and during the summer months (april to september) from 20 to 45 degrees celsius. the tem-perature of the red sea at this location during the year ranges from 22 to 29 degrees celsius.

marsa alam beach resort

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ProJEcT marsa alam beach resort

c a m e l s o n t h e b e a c h

marsa alam is situated near the tropic of cancer where the arabian desert meets the red sea, and it has the appearance of a tropical paradise with its palm trees, mangroves and sea coasts fringed with barrier coral reefs. Its reputation amongst scuba divers is renowned due to its numerous and unspoilt diving sites both along the coast and offshore. sightings of spinner dolphins, dugongs and hammerhead sharks are a frequent occurrence for those who use the many dive boats for a trip to one of the outstanding offshore reefs.

In addition to the new airport, the most significant recent development is that of a stunning new marina boasting an initial 500 yacht berths with a further 500 added in the second phase making the private marina the largest in the middle east but also providing an international sea-gateway for yachts to visit egypt. In ad-dition, the marina development will incorporates new hotels (including a 6-star), shops, galleries and bou-tiques, bars restaurants, nightclubs, casino festival hall and conference centre. a combined desert and links 18-hole golf course is also planned.

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5f l o o r p l a n o f m a r s a a l a m b e a c h r e s o r t

locatIon of 2 bed apartments

locatIon of 1 bed sUItes

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ProJEcT marsa alam beach resortmarsa alam beach resort follows the success of the best Western Zafrana be-ach resort; also situated on the red sea, the dutch developers are to construct a combination of 1.450 one bedroom suites and two bedroom apartments set in a beau-tiful, gated, five-star resort. the resort will stretch along 500 metres of coastline and the construction will only occupy 18 % of the avail able site. the ‘menu’ of resort amenities is pretty impressive – see the extensive list below:

r e n d e r I n g s o f m a r s a a l a m b e a c h r e s o r t

FacIlITIEs

• 10swimmingpools,bothsaltandfreshwater

• jetties,diveschoolandsupportingdiveshop

• 24hourconcierge,receptionandroomservice

• Botanicalgardenswithwaterfeaturesandfountains

• WellnesscentreandThalassospa

• Sportsfacilities,includingtennisandbasketball

• Medicalanddentalservices

• 24hourin-housesecurity

• Shuttleservicefrommarsa alam and hurghada airport (when the resort is

operational) with the benefit of car rental at the resort.

• the designated commercial area will provide space for the retails outlets,

restaurants, bars and nightclub

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r e n d e r I n g o f m a r s a a l a m b e a c h r e s o r t

Z o n e 1 g r o U n d f l o o r p l a n

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4 2 m 2 a c c o m m o d a t I o n W I t h 7 m 2 t e r r a c e

onE bEdroom

the one bedroom suites occupy a prime position closest to the beach, the carefully designed ‘stagger’ of the apartments allow most to enjoy a fantastic sea view. there are four styles of suite with total accommodation (including terraces) ranging from 49 m2 to 105 m2.

In all cases a comprehensive furaniture pack can be supplied and installed at a very affordable price allowing the owner to start enjoying their home immediately following completion of purchase.

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the two bedroom apartments are located on the slightly eleva-ted rear section of the resort closest to the main pool and the resort amenities there is just one common style but is can be found in standard or end and as a ground floor, first floor or penthouse posi-tion. again overall sizes (including terraces and garden) range from 99 m2 on to 159.5 m2 dependent upon type/position.

In all cases a comprehensive furniture pack can be supplied and installed at a very affordable price allowing the owner to start en-joying their home immediately following completion of purchase.

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sEcurITY oF PurchasE and InvEsTmEnT complete peace-of-mIndall homes are of freehold tenure. the purchase agreement is written by a UK based lawyer and is governed under dutch law. all purchase monies are paid into an independently held and managed escrow account, providing a secure ring-fencing of the funds until released as per the conditions of the escrow facility. a full due-diligence disclosure conduc-ted by an english lawyer will be made available to you prior to making any non-refundable payments or sign contracts. title deeds and planning licences will form part of the dis-closure.

hIGh rEnTal rETurns The 1 bedroom suites will derive a potentially gene-

rous rental return through the use of a rental ‘pool’. the rental from all suites is tallied at the end of each quarter and is then divided amongst the owners of participating properties subject to the value of the purchase. a conser-vative estimate of return is around 10 % based on assu-med income and occupancy levels. owners will have unli-mited use of their property whilst in the pool (subject to providing sufficient notice) but no rental income will be paid for the periods when the property is in personal use (includes family friends or personal lets). maintenance char-ges are covered by the operating company whilst a property is part of the rental pool.

The two bedroom apartments can benefit from an ex-citing 5 year guaranteed rental programme with a return

as high as 14 % in year 5 (an escalating return from years 1 to 5 of 6 %, 8 %, 10 %, 12 % and 14 % respectively). na-turally the developer is happy to provide this level of return based on the expectation of increasing rental values and occupancy rates as the resort becomes more established. owners are entitled to up to 6 weeks personal use per pro-perty per year which can be taken at any time subject to the required notice being given. If required the rental gua-rantee can be bank-backed by abn amro subject to a set-up charge and fee (further details of these charges can be supplied upon request). the maintenance fee is covered by the guaranteed rental return.

In all cases there is no obligation to enter the property into the rental options and the property can be fully retai-ned for the owners own use. however a modest monthly maintenance fee would be charged in all cases.

FInancIal maTTErs pUrchase costs If you decide to use a lawyer then a fee of around 2.5 %

of the purchase price is likely. In addition again if you deci-de to register your purchase at the onset you will need to allow a maximum of 3 % for the cost of this (subject to a current maximum charge of around £ 200). property regist-ration in egypt is relatively new and only accounts for around 10 % of all property. property can be registered at any time after completion and the fee is based on the purchase price shown on the title deed so the charge will

not increase just as long as the basic fee remains the same. alternatively the title deeds can be retained in a safe place (normally with a lawyer) and then a subsequent sale can only be transacted upon the production of the title deed.

FInancIal maTTErs taxes egypt has a very ‘investor friendly’ tax system which is

a key component in the foreign investment pouring into real estate. egypt works on a self declaration taxation system with rental income classed for all purposes as income tax. the taxable income is 70 % of the gross rent the other 30 % set aside as allowable deductions against income- gene rating expenses. property valued at under le 500.000 (£ 50.000 approx.) and properties where the annual rental income is less than le 6.000 (£ 600 approx.) are exempt from tax. for all properties outside of the limits of this ex-emption tax, at a flat rate of 10 % will be applied. There are no capital gains tax, inheritance tax or stamp duty.

a UK-based lawyer – anthony seddon & co will be happy to assist all purchasers with their conveyance. please let us know if you require this service and we will be happy to pass your details on.

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