Egypt: Luxor hot spot is fit for kings

By Mary Wilson
Posted: 2010/05/23

MARY WILSON believes Joanna Lumley's compelling ITV series on the Nile will encourage more visitors and property investors to Egypt

EGYPT has been a major holiday destination for decades with development around the Red Sea at Sharm el-Sheikh and Hurghada attracting both tourists and property investors.

However, most of the ancient cities and monuments lie beside the Nile, which was the focus of Joanna Lumley's Nile, the four-part series recently seen on ITV. While the programme is bound to boost visitors to the region it will also increase interest from property buyers who can now buy an apartment right on the river at Luxor, called an open-air museum by some because it has one sixth of the world's ancient heritage on its doorstep, including the imposing temple of Karnak.

"Luxor is poised to become the third most popular destination for tourists," says Jennette Bradbury, managing director of Egyptian Experience. "There are major development plans including new four- and five-star hotels. Our scheme, the Egyptian Experience Resort, is the fi rst residential development on the Nile at Luxor."

About half of the 120 apartments have sold so far, with most buyers coming from Britain.

"It's very easy to buy property in Egypt as there are no extra buying costs," says Jennette, "but we recommend that people register their property, which costs £350."

Egypt also has no capital gains or inheritance tax.

Melanie Keene, 49, from Goffs Oak in Hertfordshire, has bought two apartments. "I went on a Nile cruise in 2006 and loved the history and the architecture," she says. "I received some inheritance money and thought I would have to buy in Sharm so was delighted when I realised I could buy in Luxor, which I much prefer." She bought a two-bedroomed first-floor apartment for her own use first but recently bought a three-bedroomed
flat on the top floor. "I'll use this one for holidays and let the other to family and friends," she says. "Egypt is cheap and the food is good."

The resort comprises studios, two- and three-bedroomed apartments and three- and four-bedroomed duplexes and has nearly 300 yards of private promenade along the Nile.

There are also fi ve swimming pools, a restaurant, gym and 24-hour security. Freehold prices start at £31,250 for a studio, rising to £170,000 for a four-bedroomed duplex through IPI. Maintenance charges range from £600 to £950 a year. Access is good with flights from Gatwick, Manchester and Birmingham and costing from about £300 return.

People flock to Egypt, especially in winter, because of its guaranteed year-round sunshine as well as the museums, temples and tombs. It is also very good value, with beer at £1 a pint and a three-course meal in a good fish restaurant about £8 a head.

You can also dive and snorkel, play golf, go horse and camel riding or quad biking in the desert. From Luxor you can trek through the Valley of Kings and Queens, take day trips up the river or sail a felucca (a traditional wooden boat) at sunset.

WITH Egypt being an  emerging market, it is estimated that prices will continue to rise," says Shaz Yaqoob of Experience International, which sells new developments in Sharm el-Sheikh, Hurghada and Sahl Hasheesh.

"People buy here for the lifestyle and for good returns. 20 per cent in a year." Property prices still start at £24,000. Hotel occupancy is about 90 per cent and rental property is in demand all year round so it is possible to achieve about nine per cent gross rental return.

However attractive the prices and returns appear to be, though, buyers should appoint an independent, English-speaking international lawyer and thoroughly research the market before buying property overseas.

• MORE INFORMATION: IPI: 01273 503 903, ipi-ltd.co.uk
Experience International: 020 7321 5858, experience-international.com