Despite economic and political unrest, Egypt’s property market mostly remained subdued during 2014. However, economist and real estate evaluators Quoted that sector is expected to grow during late 2015. Reports from Q1 last year showed optimistic economic developments like increase in foreign reserves, enhanced performance of stock market and budget deficit reducing. During February and March 2014, foreign reserves rose consecutively in Central Bank of Egypt (CBE), count was $17.3 billion.
Facts & Figures
According to Ministry of Finance, budget deficit also decreased in first eight months of 2013-14 with six percent GDP, comparing with 8.4 percent previously. Entire setup of presidential election brought confidence to the real estate sector eventually raising home value. In a move to revitalize development, Emirati Arabtec Construction Company along with former Defence Minister, Abdel Fattah Al-Sisi also announced initiating a residential project accruing one million units for low income youths. This is expected to be completed over five years depending on overhead conditions like socio-political and economics.
Retail market remained intact during first quadrant of 2014 however the most active demand came from food and beverage sectors, occupying commercial malls and streets. Rental value of apartments increased more as compared to villa since they’re considered more “safe and secure”. Retail sector witnessed a rapid surge in construction supply since 2011 whereas overall economy has shown signs of further improvement.
The Positive Outlook
Cairo’s commercial property sector started ascension in 2012 and continues its pace for the last three years. Both local and foreign business investors have leased office space further bolstering the market. Even after all this, political turmoil remains one of the biggest bug due to which future projections became a challenge. Many different petrochemical and FMCG occupiers demanded more or less 15,000 square metres of commercial space while retailer keeps bringing new stores. Some of them are American Eagle (clothing & accessories retailer), Pinkberry (frozen yoghurt chain), LC Waikiki (Turkish clothing merchant) and many more.
Several construction projects were completed in 2012 including Cairo Festival City. Reports depicted that UAE and Qatari developers are seeding Egypt’s soil with many state-of-the-art projects. Meanwhile, population growth mostly from immigrants flocking in Egypt also raised demand of domestic property with better infrastructure.
Going Back to 2013
The first half of 2013 remained a blessing for Egypt real estate however civil unrest hit the market quiet hard. Before this rebellion, realty market was active with rise in house prices. With time, demand from domestic and international home buyers grew and is still moving upwards gradually. Both residential and commercial sector saw a positive shift with growing construction. An Egypt-based public shareholding company revealed its net profit shot all the way to nearly 102.6 percent in the year with a 50 percent increase in housing schemes.
The Diversified Offers of Present Year
During recession of property market in Egypt, companies adopted the slogan “buy an apartment and win a trip to Asian country”. Some small and mid-size companies offered gifts and perks to their clients. You won’t believe that for each apartment sold, companies offered a free trip for four individuals to Dubai, Malaysia, Bangkok and Lebanon.
Competition between companies was intense as everyone struggled to maximize profit and earn a place in the sun. Still, not all realty companies provided the offer citing that real estate and free trips aren’t coinciding in anyway. If they were to cater buyers, it should be something related to home such as free repairs and maintenance for entire year, furnished home at normal price so on.