Egypt’s real estate market is gearing up for robust growth in 2024. However, because of high inflation and construction costs, the pace of growth may slightly slow, compared to 2023.
In 2024, a stabilized foreign exchange rate on the local market and high dollar inflows may support Egypt’s real estate sector as companies will offer flexible payment terms.
The real estate market is highly sensitive to economic growth, which may slow down on the backdrop of increased inflation and higher interest rates this year.Urban inflation rose to 35.7 per cent in February, up from 29.8 per cent a month earlier, according to data from the state-run Central Agency for Public Mobilisation and Statistics (CAPMAS).
However, Egypt’s real estate industry is expected to show resilience in 2024 given sustained demand.Since Egyptians consider real estate to be a store of wealth, many prefer it to bank deposits as an investment.
Real estate has historically shown appreciation in value over time, making it a reliable investment.Properties can also generate rental income, providing a steady stream of cash flow.
Real estate trends
The residential sector in Cairo saw the completion of around23,000 units in 2023, increasing the total stock to almost268,000 units, according to data from real estate research agency JLL.
“Around 33,000 units are scheduled forcompletion in 2024, the majority of which are apartment unitswithin mixed-use developments.Despite the headwinds faced by the residential sectorthroughout 2023, the market exhibited remarkable resilienceand strength,” JLL said in its Real Estate Market report for 2023, a copy of which was obtained by The Egyptian Gazette.
Property prices may rise in view of high construction costs and increased interest rates. Real estate prices rose by 56 and 63 per cent in the 6th ofOctober and New Cairo, respectively, in the fourth quarter (Q4) of 2023, according to JLL data.
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