How is Egypt’s real estate market encouraging investment?


Egypt is growing, Egypt is expanding and
in the coming 35 to 40 years we need to double the urban area of Egypt from 7%
to 14%, so all that we did in 7,000 years we need to do it again in 35 years.
That is huge and that should encourage foreign investors to come and invest.
Look at all historical data about Egypt and different sectors of the economy
along with the real estate sector. If we merge the positive economic outlook
of Egypt along with the strong fundamentals and historical data about the real
estate market I think we are in front of a very positive and very stable market
and very stable part of our economy. Egypt developed 24 new cities from
scratch in the desert in the last 40 years. Now Egypt has an ambitious plan
to develop another 35 to 40 new cities in the coming 40 years. Fourteen of them
are currently undergoing in what’s called the fourth generation of new cities, the
new administrative capital New Alamein, New Mansoura and in Upper Egypt.
And the fourth generation of new cities is really advanced compared
to all that we have currently. The thing that we should learn from the
international experience is the focus on economic basis. How do you provide
an economic base for a new city that allows the new city to flourish. In addition
to that we need to focus on the expected residence profile. In each new city there
is a target population and the target population should come from certain
places based on the economic base and based on the strategic plan of the new
city. Focusing on the expected residence profile, what kind of jobs are they
looking for? What kind of education do they have? What kind of income do they have?
You can provide the typical job facilities, housing facilities for them,
infrastructure and services that will allow them to come
and live in this new city. Egypt has a population of 100 million who are increasing annually by
about 2.5 million. The number of marriages recorded in Egypt in 2017 was
about 1 million and this is a big number that covers all segments. The supply on
the other side is nothing compared to with the demand. The annual
provision of housing units is no more than 30 to 40 thousand units.
So the gap is increasing and it covers all the segments from social housing to
luxurious and upper end. So I think the real estate market in Egypt is very
competitive. Real estate is creating lives, creating the proper atmosphere
for people to live in, so if we look at the different non-residential assets you
will see something very interesting. We have huge demand and schools,
higher education, universities and colleges, hospitals and health facilities,
commercial spaces, retail spaces. We still need ten times what we have currently to
just meet the demand. The real estate market in Egypt is very attractive, has
a lot of opportunities for Egyptian investors and for international
investors to come and invest in, whether in the residential component or in the
non-residential assets. We are trying to change a lot from the regulations from
the general landscape and the investment market in Egypt. The good thing about it is
that the government is fully supportive of this step. The private sector is fully
supportive. So I think the joint efforts between the government and the private
sector will achieve huge success. It’s the right time for the real estate
financing, for the project financing and mortgage mechanism to come and please. We need to work as private sector with the government and with the different
financial authorities towards finding new mechanisms that allow the real
estate companies to get the required financing. Egypt is in a better position
than before we have a stable economy we have a stable political environment. That
is really encouraging us to invest more in the real estate sector and to invite
others to invest with us. So we are benefiting as a real estate sector from
these reforms because actually these reforms confirm the strength of the
real estate market, the resilience of the real estate market towards keeping your
investments as an asset that keeps your investment over time.

Leave a Reply

Your email address will not be published. Required fields are marked *