Egypt's Property Market Soars Despite Economic Strain
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Loading... - Dennis Jamieson
- 05 Sep 2024
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Despite Egypt's economic challenges, the country's property market has continued to surge, with prices rising by as much as 175% in some areas. According to a report by Jones Lang LaSalle (JLL), sale prices in Cairo's upscale residential areas of the Sixth of October City and New Cairo have seen significant increases, with rental prices also surging by up to 122%.
Several factors have contributed to the surge in property prices, including the devaluation of the Egyptian pound, which has led to an increase in construction rates and a shift towards real estate as a safe haven and hedge against currency instability. Additionally, Egyptian expats and foreigners have been actively buying properties, taking advantage of the exchange rate and driving up demand.
To ease buying amid the price hike, developers have offered extended instalment plans of up to 10 years, making acquiring properties more appealing. However, speculators trying to benefit from the hype have also led to a false demand and consequently price hikes.
The North Coast has become a focal point in Egypt, with projects such as Ras El-Hekma, Talaat Moustafa Group development project, and New Alamein City driving investment and growth. The area provides the highest return on investment (ROI) due to the large investments and development projects, making it an attractive option for Egyptians, expats, and foreigners.
Despite the positive outlook on the real estate market in Egypt, developers are still cautious due to market uncertainties, leading to a selective approach to launching new projects and managing costs.
