- Published: Monday, 12 June 2017 17:00
Real estate investment in Egypt has changed with the change of three main factors; population, mentality, and needs. While the Egyptian population is a fast-growing of around 92m which increase approximately 2.2% each year -according to the World Bank- the demand on the real estate has increased directly.
From the late 80s and the 90s of the past centenary were the times when the Egyptians started to work abroad and the demand on the real estates started to rise up, the Egyptian Pound was under pressure as well as the inflation and because fixed assets as lands and mortgage never looses its value; the property was seen as one the safest investment.
The property’s needs has converted from a place to live to an investment because the value of the Egyptian Pounds to the foreign currencies went down thus, the yearly installments of the property to the foreign currency is decreasing so the expats from Egypt started to buy more than one property to rent and be their business.
Egypt’s yearly weddings – nearly 900,000 – are also a major driver of demand, as newly married couples look to move into their own homes and invest in property for the future, According to forecasts an extra 90,000 to 100,000 units will be needed per year through to 2020 to meet demand, which is well above the annual average of 45,000 units that have come on-line in recent years.
Addition to this high demand and low supply plus the number of population in Cairo which has approximately reached the 10,000,000 -according to The Central Agency for Public Mobilization and Statistics- Sky Bridge is establishing new homes outside -but still near- to the capital with the capacity on 300,000 m2; 80% of which are landscapes to over come the shortage in the supply of properties in the near future.
Property investment took more than one shape in Egypt during the years as the real estate is the safest investment as the fixed assets’ value will always increase.