Real Estate
From The Report: Egypt 2017
View in Online Reader

Recent macroeconomic trends – particularly the depreciation of the Egyptian pound and the foreign currency shortage – reflected both positively and negatively on Egypt’s real estate market throughout 2016, resulting in mixed results and predictions across the sector. The situation was felt across all sectors, but it had a particular impact on the real estate market. On the one hand, investment in property continues to be a relatively stable prospect in uncertain times. On the other hand, the depreciation of the Egyptian pound resulted in increased construction costs for imported materials and corresponding delays, diminished the amount of disposable income for the population and made profit generation a challenge for the retail segment. Yet despite some economic setbacks and continued legislative hurdles, there is reason for optimism in the country’s real estate sector. While growth rates may have slowed for the moment, and foreign currency shortages have delayed some projects, demand remains strong and housing needs across the income spectrum must be met.

This chapter contains interviews with Ayman Ismail, Chairman, New Administrative Capital; and Ahmed El Hitamy, CEO, Madinet Nasr Housing and Development.

Articles from this Chapter

Overview

A place to call your own: Residential, commercial and retail space sees sustained demand
OBG
plus

Recent macroeconomic trends – particularly the depreciation of the Egyptian pound and the foreign currency shortage – reflected both positively and negatively on Egypt’s real estate market throughout 2016, resulting in mixed results and predictions across the sector. In March 2016 the Central Bank of Egypt made the decision to devalue the Egyptian pound by 14.5% to historically low levels in an attempt to incentivise more foreign investment and stabilise the volatile economic climate. After…

Interview

New developments: Ayman Ismail, Chairman, New Administrative Capital, on project opportunities and plans going forward
OBG
plus

Interview: Ayman Ismail What is the biggest obstacle to overcome to ensure the new capital achieves its objectives? AYMAN ISMAIL: In my view, there are many challenges associated with a development of this kind, but no true obstacles. This is largely due to government support, which ensures that we have the resources to respond accordingly and quickly when anything arises. Because the New Administrative Capital project is a priority, there is a high level of efficiency in the bureaucratic, regulatory…

Analysis

An expanding metropolis: Egypt sees rapid development in and around its capital
OBG
plus

The expansion of Cairo to the east and west of the downtown area has been going on for decades, to varying degrees of success. This growth has long appealed to Egyptian government officials looking for ways to relieve some of the pressure placed on the densely populated city’s ageing infrastructure. According to the most recent data available from the UN, 56% of Egypt’s 92m citizens are concentrated in Greater Cairo and Alexandria. New Cities The latest in the growing list of suburban cities…

Interview

Lay of the land: Ahmed El Hitamy, CEO, Madinet Nasr Housing and Development, on trends in the mid- to low-income segment
OBG
plus

Interview: Ahmed El Hitamy How are land prices affecting the sector’s ability to keep up with growing demand? AHMED EL HITAMY: The greatest segment of growth in the real estate sector is in the lower- and middle-income housing segments due to population growth. Land prices can make it a challenge to build housing that is affordable for people in these respective segments. However, developing with economies of scale can help to make this feasible, as can design efficiency. In addition, developers…

Analysis

No place like home: With a growing population, the continent looks to solve its housing shortage
OBG
plus

Africa is a diverse continent, with roughly 1bn people, 54 countries and thousands of languages. Additionally, many of its economies are facing similar challenges. One of the most common obstacles African markets face is a shortage of affordable housing. Kenya has a housing gap of approximately 2m homes, for example, while more than 12m people in Egypt live in informal buildings. This is hardly unique to the continent, but with high GDP expansion, limited job creation, strong population growth and…