Egyptian Real Estate

Cleopatra Developments projects are designed by esteemed Italian architect G.B. The result of his work is a refined encounter between Italian taste for luxury and Egyptian architecture, for real estate projects looking at the same time at tradition and to the most sought-after international style. The real estate and construction sectors have grown faster than the Egyptian economy, following the devaluation of the pound in 2016. On the other hand, the construction sector has grown by 10% (“Egypt GDP Annual Growth Rate”, 2019). The dissonance between the two sectors and the economy is a result of the inconsistency between monetary and fiscal policy.
If many customers default on their installments, developers would not be able to pay back the banks. A crisis in the real estate sector would mean that families lose the value of their investments and would thus lead them to withdraw and decrease liquidity in banks. Even if the bubble did not burst, the sector will slow down, leading to stagnation in the construction sector, which is responsible for 3.4 million jobs and was responsible real estate Egypt for 52% of newly added jobs in 2017 . Egypt's home market has made a surprising comeback, boosted by the government's recent severe economic reforms, particularly the recent loosening of the country's foreign land ownership regulations. The countrywide real estate price index increased 28.3 percent (22.6 percent inflation-adjusted) in the year to Q1 2021, compared to a y-o-y decline of 30.8 percent in the same period of 2020.

Supply would increase further if the government kept pushing investments toward the real estate sector. Demand will soon decline when markets start experiencing a weak purchasing power due to higher taxes as the government introduced a 14% value-added sales tax. This will be further amplified with a devalued pound and contractionary monetary policy. Owning real estate property is not only perceived as a good investment but rather, it is a social  phenomenon.
Mohamed, your friendly CEOMohamed did his undergrad in Poland and completed his postgraduate studies in the UK, so he can help you in English. It’s also great to have direct access to the CEO when making such an investment abroad – you’re bound to get better service. As soon as more people start living in the New Administrative Capital, and the tallest building in Africa is complete, expect international awareness and even more locals wanting to move in. As a real estate investor, I love it when developers are under pressure to deliver on time, and are held accountable. Unlike with the other new cities around Cairo, the authoritarian government will force people to transition to the new capital. The reality is that there is nothing wrong with these new, modern, clean cities.

All information provided is deemed reliable but is not guaranteed and should be independently verified. This is known in Egyptian law as the right of private ownership and how to record transactions at public notary offices. Foreign citizens have the opportunity to buy real estate in Egypt under Law No.30 of 1996, which organizes non-Egyptians ownership of built properties and space lands. This law gives Foreigners the right to buy real estate in Egypt on an equal footing with Egyptians, using only a passport.
This is more adequate for people who already have assets and are looking to diversify. If the economy were to take a turn to the worse, then getting dollars out of the country could be problematic. If the developer were to go bust, even if there is a state guarantee, it would nevertheless not be pleasant, but certainly not a catastrophe. It’s pretty amazing to be able to buy an off-plan apartment from a developer without having to worry much at all. At 9% interest per year, it amounts to almost 0.8%  of the property value per year for HOA fees, which is fair.
Zarif notes that more than 50% of the project’s construction is completed, which made the company aim to complete the sale of the project during the current year. Emad Doss, CEO and Managing Director of El Batal Developments says that his company will be one of the first companies to deliver administrative buildings in the NAC’s Government District. Egypt’s travel and tourism sector’s contribution to the nation’s GDP grew from USD 32 billion (8.8%) in 2019 to USD 14.4 billion (3.8%) just 12 months later, in 2020.

New residential projects in Egypt were favored by foreigners and Egyptian expats all year round due to several factors, including currency devaluation, high salaries granted to them abroad, and the ability to formulate a savings plan. When searching for competitive offerings, buyers should consider two primary factors; the location and the credibility of the developer, according to Coldwell’s Banany. Even though considering location is crucial, the current market inventory is experiencing an undersupply, according to Banany, as some locations ran out of supply completely; especially prime locations in Ain Sokhna and the North Coast.
His knowledge of this city and  it’s real estate market is second to none. Sun CapitalThis evolution left the door wide open for thriving investment opportunities, especially in the New Cairo market as it has witnessed an increase in the residential rentals due to additional short term demand from individuals. This demand has allowed owners to increase quoted rents of their revenue generating assets. The good news is that rents in New Cairo are expected to increase more and more during the next year which makes this optimal condition for those who want to invest in real estate for renting purposes. To conclude, the aim of this article is to highlight the state’s latest developments in its broader strategy and vision to digitalize Egypt and advance the government’s performance at various levels.