The Egyptian Real Estate Market Brushes off the Negative Impact of the Arab Spring to Forge Ahead Momentously
Despite the upheavals of the Arab spring, currency devaluation, as well as upticks in inflation, which have all had a negative impact on disposable income as well as the cost of construction, the Egyptian real estate markets have continued to experience resilient growth rates.
2017 was a momentous year for the Egyptian real estate market. Apartment sales took an incredible leap, registering a 59% increase. Villa sales also saw an impressive increase of 16% that same year. Over 10,000 units were introduced into the market. And according to statistics, this market momentum is bound to continue into the foreseeable future, with an estimated 70,000 units projected to be added to the real estate stock within the next three years. However, these key performance index figures only reveal a glimpse of the possibilities that await investors in the Egyptian real estate market. The projected number of additional real estate stocks to be introduced to the market in the coming years is paled by the estimated yearly demand of 500,000 new units. And with strong economic fundamentals, including an impressive GDP rate of 5.4% –according to IMF estimates, investors stand an enviable chance of reaping impressive ROI on their real estate investments in Egypt.
Key Factors Stimulating Investor Interests in Egypt’s Real Estate Stocks
The Egyptian government is keen on providing a supportive regulatory environment for both local and international real estate investors. Last year, it instituted a new investment law that levels the playing ground for both foreign and local investors. The new law gives foreign investors the right to remit profits and to secure financing from international bodies without restrictions. The new law also grants international investors residence permits that are valid for the duration of the investment, among other things.
Add to this the backdrop of an impressive GDP growth projected for the next few years, as well as reduced inflation, and we’re left with a recipe for a booming real estate market where new projects are springing and sprawling across various parts of the country. And as the market blossoms, competition is bound to kick into higher gears, bringing about an increase in the number of choices available at affordable prices.
Some Key Developments Powering the Real Estate Market Boom
Koraba Heights, Heliopolis
Couched in an incredible 42,000 sqm land mass, this is one of the most remarkable developments in Heliopolis Cairo. It comes with breathtaking architectures, an impressive array of cafes and restaurants, as well as state-of-the-art villas.
The development is strategically located close to New Cairo, the new Ring Road, and the regional ring road connecting all new vital cities and major high ways across Cairo. The great project is designed to serve as a self-sufficient city that panders to luxury without negating the basic necessities and amenities of life in a city.
Some of the key features of the project include breathtaking architectures, entry and exit gates, 8400 sqm of lush verdure, spas, indoor pools, underground parking lots with capacity to fit over 1100 cars, as well well as a pharmacy and clinic.
The Gate, Heliopolis
This development is the largest eco-friendly city in Egypt and the Middle East with infrastructures for a residential, administrative, commercial and smart city. The development features a monumental steel mesh canopy that envelops the entire complex which is made of a series of rectilinear developments arranged around the central street called the ‘Boulevard’. One of its most iconic features is the collection of nine mega trees that serve as passive cooling system inspired by the wind catching towers or Malqaf of Ancient Egypt. The development is fitted with state-of-the-art facilities including HVAC automation, solar panels, infinity pools, and lots more.