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Demand is likely to continue for Egypt due to its high accessibility by air (number of airlines), ease of entry (visa requirements) and government commitment to promote Egypt as a tourist destination (government prioritisation of travel and tourism and promotion of the country in fairs and exhibitions). Low cost (purchasing power parity) seems to be a key competitiveness factor in international markets. But that is explained by low quality infrastructure and superstructure in Egypt. These two factors are going to represent a challenge for high-end residential projects on the Red Sea Riviera including Atom Cove, Port Ghalib, Serenia, Gamsha and El Gouna West Golf. They are targeted at the super rich who can afford their prices.
The majority of overseas property buyers in Egypt are British. Anecdotal evidence suggests that 90 percent of purchasers are generally buy-to-turn buyers. They tend to buy the property off-plan naturally at a discounted price and resell hopefully for lucrative profit margins. Buy-to-let buyers are not common in Egypt due to either lack of confidence in the property management capability of operating companies, simply because annual returns are not competitive (ca. 9 percent per annum) or due developers offering unreal returns as they incorporate them in the property price.
EGYPT
We have been retained by a client to conduct a market study on overseas property demand and supply in Marsa Alam, and critique a proposed development concept.
Croatia’s nautical tourism is said to be growing at about 10% each year and to generate more than €700 million in annual revenue. There are currently about 105,000 registered boats in Croatia, and another 160,000 boats are estimated to visit its waters each year. Increasingly good infrastructure triggers rising demand from Austria, Germany and Switzerland as well as from the very large British, Irish and French sailing.
The demand for marina berths in the Mediterranean is currently exceeding supply. For medium to large yachts (30m+), particularly, waiting times can be up to 20 years for annual berths (for example, in Nice or Cannes). Croatia has therefore seen a chance to get into the market of superyachts and plans to open new marinas catering for the demand of larger yachts (25m +) in Pula, Zadar, Split and Dubrovnik as part of the Marine Tourism Strategy.
We have been instructed by a client to investigate investment opportunities in “Nautical Tourism” in Croatia. The assignment included a market study on Croatian Marina Industry. This was followed by identifying and filtering a range of opportunities. After opportunities were narrowed down to 2 or 3 marinas & hotels, they have been valued and negotiation were initiated with owners.
SAUDI
Makkah is in the Western province of Saudi Arabia (also Hejaz Region), 80 kilometres east of Jeddah. The Holy Mosque located in Makkah, Kingdom of Saudi Arabia. Makkah is the pilgrimage point for Muslims. Pilgrimage to the city is one of the five Pillars of Islam and is required of all able adult Muslims at least once in their lifetimes. The Major Pilgrimage (Hajj in Arabic) and Minor Pilgrimage (Umra) are the defining factor in the growth and life of the city. The focus of the local government within the next 15 years is to regenerate the Holy city. New areas are going to be large integrated development projects offering high quality property product and mixed land use.
Although legislative changes have been made in Saudi Arabia to allow non-Saudi nationals to own land and businesses, limitations apply except for individuals who inherit property. Despite this, a number of mechanisms have been developed by property developers to negate the legal constraints being placed upon them. For example, one apartment sales scheme is offered for foreign investors via an offshore vehicle company established specifically to facilitate such sales. The offshore company has an established asset base ranging from shares to land holdings and when investors purchase shares in the offshore company they receive the exclusive rights to use one of the apartments in Makkah being offered by the developer. Developers have also established sales offices in other countries (primarily GCC) and have been offering 99 year leases for sale to GCC nationals.
LIBYA
Due to Libya’s new economic wealth, the real estate sector currently offers good prospective growth opportunities for investors. As with the other sectors in Tripoli, the office market is on the rise due to the increased economic activity with demand far outstripping supply. Most of the existing offices which correspond broadly to International standards are located to the west of the Medina and the centre of Tripoli, a precinct considered to be Tripoli’s Central Business District (CBD).
The main source of demand for the office sector is directly linked to the expansion of foreign investment across a large spectrum of economic fields. Actually, Libya is considered as a new and promising growth market, which continues to open up to international business. The increasing flow of inwards investment by international companies in recent years has lead to those same now seeking to install a head office for Libya in the capital, providing additional impetus to a sector already over weighted by unsatisfied demand. Demand is expected to remain at consistently, indeed increasingly, high levels for the immediate future, and at least until such time as the majority of currently proposed projects are completed.
We have been retained by a client to carry out the valuation of a mixed-use development in Makkah. The development included 2 branded 4- & 5-star hotels, shopping mall and serviced apartments. We then have been instructed to identify equity investors for the development.
We have been retained by a client to carry out valuation of two 5-star hotel in Tripoli. The purpose of the valuation was to prepare funding documents for the properties.
CROATIA