Egypt’s real estate sector remains buoyant

Investment is being fuelled by Egypt’s fast-growing population of around 90m – which increases by approximately 2.2% each year, according to the World Bank – as well as interest from abroad, as Egyptian expatriates look to capitalise on the weaker Egyptian pound.

For many Egyptians, property is seen as one of the safest investments, particularly with the country’s currency under pressure, as well as a hedge against inflation, which has historically been a problem. Investment properties are particularly popular for resale or rental at a later date.

Public and private investments in the property market totalled LE47.5bn ($5.3bn) in FY 2014/15, which ended in June 2015, contributing around 5% to GDP. A decade earlier investments stood at LE6.58bn ($741m) for the fiscal year ending in June 2005, according to Ministry of Housing (MoH) figures.
Investor interest

The current market environment is also drawing a range of domestic and international investors, including local developer Palm Hills – which has seen success with its Palm Valley West Cairo project and expects to deliver a total of 1800 housing units this year – and Dubai-based Emaar Properties, which has sold over 2150 units in Egypt to date.

Currency depreciation, combined with greater political stability, also draws interest from Egyptians abroad, who are looking to invest in second properties, Nick Maclean, managing director for the Middle East at CBRE, told local media.

Maclean highlighted the success of developments around Cairo, such as Pyramids Heights, Smart City and Cairo Festival City, which have drawn interest from the international market.