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Egypt’s property sector backed by resilient economy, strong demographics – Savills

Egypt’s property sector backed by resilient economy, strong demographics – Savills
The upcoming years will continue to witness an increase in residential demand

Cairo – Mubasher: The real estate market in Egypt is maintaining its position and is regarded as an attractive investment, supported by the impact of the country’s economic expansion, according to Head of Savills Egypt, Catesby Langer-Paget.

The Egyptian economic expansion is expected to moderate to nearly 4.5% between 2021 and 2022, yet starting 2023, the gross domestic product (GDP) growth is predicted to return to its pre-pandemic rates of above 5.5%.

“The decrease of interest rates in the market is positioning real estate assets as the safe haven for investments across the country, driving demand for local investors, Egyptian expatriates, as well as foreign investors,” Langer-Paget noted in a press release on Wednesday.

Head of Operations at Savills, Sherine Badreldine, elaborated that the position of the property sector in Egypt is growing in some segments like in the residential market where demand for units has remained strong across Greater Cairo, bringing the current residential stock to 7.1 million units.

Both West and East Cairo areas are witnessing the development of a variety of large mixed-use projects by private developers. This followed expansion vision launched by the government as well as the New Urban Communities Authority (NUCA), Badreldine added.

“The upcoming years will continue to witness an increase in residential demand driven by population growth. For the office market, the demand for office space remains strong, nonetheless, patterns of supply and demand within the key office hubs are changing,” according to Head of Strategic Consultancy at Savills, Zeinab Adel.

She noted that “developers are preferring to move away from Downtown Cairo and Giza towards mixed-use organised office parks, that offer a variety of amenities and sufficient parking space in Sheikh Zayed City and New Cairo.”

It is worth noting that the first phase of Egypt’s New Administrative Capital will reportedly house 2 million to 2.5 million people, whereas the whole project will house 7 million.