The real estate sector is one of the bedrocks of the Egyptian economy, and has remained stable even during times of political turmoil in the country.
This sector already contributes significantly to the Egyptian economy by impacting around 90 surrounding industries relating to construction and development, and 8% of the overall labour force.
Additionally, real estate investments currently comprise between a third and a half of all middle and upper income classes’ wealth, and over half of the lower-income population segments wealth.
Furthermore, annually published reports have shown that Egyptian publicly listed real estate companies have witnessed double-digit growth in their revenues supporting their market capitalizations. On a macro level, the real estate sector has been growing at more than 20 % lately and its overall contribution to GDP has exceeded 10 %.
The floating of the Egyptian pound back in 2016, also influenced this sector, more specifically by causing an influx in the purchase of high-end properties, since Egyptians living abroad suddenly had twice as much income when converted to Egyptian pounds. Knowing that investing in Egyptian property is low risk, much of the middle class turned to the real estate market for investments, for both primary and secondary homes. Moving forwards, this sector is expected to increase Egypt’s external competitiveness, and thus attract more foreign investment into the country.
Aside from residential properties, there is a growing demand for commercial and retail spaces, and a large number of shopping centers and office parks are currently under construction in an effort to meet the demand from a more structured market driven by the growing middle class.
Additionally, one of the government’s main focus points in 2018 was to provide enough housing for citizens from all social backgrounds. Accordingly, around 915 projects have been implemented, at a total cost of EGP 85 billion to aid in reaching this goal. The implementation of projects in service & development categories which support the housing sector will also continue, and as such, 3392 new projects are currently under construction at a total cost of LE 1.13 trillion.
It is also important to note that 29% of the population is under 40 years old, as this suggests a continuation in the demand for primary and secondary homes within the country.