Egypt's real estate market is experiencing a significant upswing, with sales growth and a surge in demand from foreign buyers. The recent change allowing foreigners to purchase real estate without restrictions, provided they pay in foreign currency, has already produced tangible results. Let's explore the key developments and what they mean for both investors and developers:
1. Increasing Sales and Demand:
- In the third quarter of 2023, approximately 7,000 apartments in Cairo's residential sector were successfully sold to foreign buyers. This number is projected to reach 9,000 in the fourth quarter.
- The spike in demand for newly available residential units has driven a notable increase in prices, with a remarkable 40-45% jump recorded in October 2023.
- Rental rates are also on the rise, growing by a substantial 22% annually.
2. Developer Response:
- Developers have responded to this increased demand by launching new projects, particularly in the hospitality sector, including hotels.
- The office real estate market is set to see the introduction of several Class A properties in the next 2-3 years, reflecting the market's growth.
It's essential to note that Egypt currently ranks second in the Middle East and North Africa region for the total value of real estate projects, with completed projects worth $500 billion and ongoing projects valued at $771 million in the first half of 2023. This surge in real estate activity has opened up new investment opportunities in Egypt, offering promising prospects for investors.
If you're considering real estate investments in Egypt, now is an opportune time to explore the market's potential. However, selecting the right property for investment is crucial. With the market dynamics favoring growth and profitability, making informed decisions is the key to success in this flourishing real estate landscape.