According to the Association of British Travel Agents, the north African country is likely to attract a significant number of UK tourists in 2008.
As a result, people who let out property in hotspots such as Sharm el-Sheikh could find their residences are subject to strong demand this year.
This could have the positive consequence of boosting its value and allowing investors to collect higher rental returns.
Speaking to BBC News, spokesperson Frances Tuke said the growing appeal of Egypt is a reflection of changing habits in consumer's destination choices.
She commented: "People are becoming very demanding in their holiday choices.
"They want to be a bit more adventurous."
Egypt was recently recommended to foreign property buyers by the BuyAssociation website, which said it was one of the most popular winter sun destinations among Britons.