2022 was -to put it mildly- a tough year, especially when it comes to the economy both on a global and local scale. As a result, most business were significantly impacted (some, more than others) and Real Estate was no exception.
However, the Egyptian Real Estate market was still able to withstand these challenges and continued to grow.
Local and Foreign investments continued
Even throughout such global economic turmoil, we continued to witness new Real Estate companies entering the Egyptian market and starting new projects. Proof that Egypt remained an attractive Real Estate destination for foreign investors.
Similarly, progress has continued on the national project front with no serious interruptions to projects such as El Alamein, the new administrative capital, and Mansoura, the new city.
A safe investment
Real Estate remains to be one of the safer and wiser options in Egypt for people who are looking to invest. Real estate property is able to maintain its value over time and as such, is a precious investment, especially during times of economic unrest. In addition to that, it also offers high returns at a significantly lower risk compared to other investment types.
Buying property, making improvements to it and then selling it later at a significantly higher price is an almost guaranteed method for achieving long term profit. Alternatively, purchased property can be rented out resulting in a consistent stream of steady income.
It is as such, a quite convenient investment in terms of flexibility where it can be repurposed to match the type of income generation one is looking for whether it is long term profit or consistent generation of income.
The outlook for 2023
Due to the continued rise of inflation and prices of construction material rising globally, developers in Egypt will have little choice but to follow suit and also increase the price of properties for sale.
This however should not result in any significant delays to the building of new cities in Egypt according to “Vision Egypt 2030”. Especially in the New Administrative Capital where demand is still high on commercial spaces by both local and international investors.
Demand is also quite strong in West Cairo and Sphinx Airport due to the opening of the Grand Egyptian Museum.
2023 should also witness a significant amount of focus by the Egyptian government towards the local Real Estate market. It is expected that more rules, laws and regulations would be put in place between buyers, investors and developers to sustain Real Estate business growth in the country.
We are still at a quite early stage in 2023 and each passing day brings new updates with regards to the global economic situation. The long and short-term future of the Real Estate market in Egypt will largely depend on the direction in which the economic situation is heading along with the fluctuation of the dollar and the depreciation of the Egyptian point.