Despite Egypt’s turbulent political and economic climate, real estate has managed to emerge as one of the country’s most attractive investment opportunities.
The sector took an expected dip in 2011 but was able to recover following the implementation of policy reforms. Capital controls, one of the government’s most effective and controversial policy reforms, limited the amount of funds that could be transferred outside Egypt.
Egypt. Additional economic changes such as negative real interest rates and the devaluation of the Egyptian pound pushed investors to pour their money into property
Aside from investment-motivated purchases, the long-term demand for real estate in Egypt is positive. It is estimated that the country will need around half a million units each year to meet demand in addition to
its existing 3-million-unit gap.
The figures reflect Egypt’s annual growth rate, which hovers around 2.5%, and the annual number of marriages, which has recently reached 1 million. However, average total housing supply amounted to only 165,000 units per year for the past 5 years, with the public sector contributing to 33% of the
units compared to 67% from the private sector.