Egypt's real estate market is with high appetite and robust demand for large-scale real estate projects. The current construction of 20 new cities, in addition to the development of other 23 existing new cities have been addressing many attractive investment opportunities in Egypt.
China Fortune Land Development Company announced recently its plans to invest USD20bn in its current projects in Egypt. Meantime, Saudi Arabia’s big investment players such as “Saudi Public Investment Fund” is investing more than USD10bn in Egyptian market while other private companies are going to invest USD44bn, summing up to more than USD54bn in the last quarter of 2020.
Despite previous year disrupting events, the Egyptian property market assets have been firmly resilient compared to other regional markets and specifically in Egypt itself. As a result, Egypt's economy is prudently growing with clear stable inclining figures despite the pandemic. GDP’s current indicators is continuing to excel and stand out when compared to the MENA & African regions, averaging 2.6% in FY2019/20 and 3.6% in FY2020/21. This places Egypt as one of the strongest growing emerging market economies in the long run, which is believed to boost the demand for commercial real estate.
Greater Cairo is expected to reach 40 million inhabitants by 2050.
Egypt’s real estate market has recently witnessed several major developments crowned with aggressive government mega infrastructure projects. The Egyptian government has recently adopted more programs to promote foreign investments in construction and real estate projects. Building the New Capital, New Alamein City and several new cities being established to expand old urban governorates, served as an incentive for developers to expand their presence and future projects while launching new brands to meet consumers’ expanding demand.
The New Capital and the recent National New Roads Projects led to a phenomenal growth that reflects the country’s booming economy, which is expected to surpass a 5.8 percent in 2020-2021, in addition, increased property projects are expected to further improve Egypt’s image as a prime touristic destination in the Middle East.
As for the retail segment, it is poised for further expansion, driven by the increase in consumer confidence and spending. In this sense, Colliers’ regional director predicts rental rates to surge by approximately 10-15%.
Strong economic indicators such as the Purchasing Managers’ Index (PMI) issued by IHS Market demonstrates how Egypt continues to hold a strong position and is a promising market. Furthermore, a noticeable climb in Egyptian expats’ remittances by 7.5%, net international reserves witnessing an increase of around $1.8Million, added to which non-oil trade deficit shrinkage by $566.8Million and the petroleum trade balance seeing a surplus of $312Million reinforces the positive economic outlook of the country.
While the government looks to address the tremendous realty demand from low and middle-income segments, local private real estate companies continue to launch new world class developments that comprises an array of mixed-use, residential, medical, commercial, service, and entertainment spots. Driven by an increase in consumer confidence and spending, Egyptian real estate economics continue to paint a positive picture and well ahead compared to the rest of the region through its public and private sector endeavors, releasing many projects to cope with an overwhelming urban development demand
State Infrastructure & National Projects
- New monorail and metro lines to connect the capital, its urban provinces and the New Administrative Capital
- 7000 km arterial main roads in last 5 years (Egypt ranks 28th in Global Quality of Transportation)
- New Cities in Major provincial governments such as : Ismailia, Rosetta, Damietta, Port Saeed, Mansoura, Alamain, Aswan, and others.
- 3696 projects at a cost of L.E. 830 bn in last 4 years
- 1426 projects at cost of L.E. 208 bn in pipeline