Over 50% of investors and 69% of real estate professionals surveyed in a recent analysis by YouGov, an internet-based market research firm, expressed confidence in the Egyptian real estate market’s expected growth over the next 12 months.
The report, which surveyed the almost 500 investors and real estate professionals, revealed that 54% of investors expect Cairo’s real estate market to grow over the next year, while 28% expect the market to stabilise.
According to YouGov’s analysis, Egypt’s residential sector topped the list as the most attractive asset class with 60% of investors choosing the sector if they were to invest $10m in Egypt’s property market. It was followed by retail (9%) and hospitality (9%).
Cityscape Egypt Event Director Tom Rhodes said the dominance of the residential sector among investors illustrates the vast potential in the Egyptian housing market, coupled with the demand from the country’s growing population.
Rhodes added that the need for housing to complement Egypt’s rising urban development has created some pressure on the market. It has also created an opening for capital chasing investment opportunities in the sector, a driving reason for the confidence expressed among real estate professionals and investors on the outlook of the industry.
Investors and real estate professionals have much to be optimistic about, as a recent research from global property advisor Colliers highlights the benefits of creating developments in Egypt.
Colliers said that, the average sales prices within master planned communities in New Cairo are in the range of $1,100 and $1,500 per sqm (luxury developments can reach more than $1,900).