Egypt’s residential real estate market has become attractive in recent years and it's expected to see continued growth in 2023. But what factors are driving this growth and what can we expect to see in the market? Keep reading to find out more about what could unfold in Egypt's residential real estate market during 2023.
CONTINUED INVESTMENT GROWTH
The Egyptian residential real estate market will likely see continued growth in investments in 2023. This is due to many factors, one of the main drivers being the country's growing population. Egypt's population is expected to grow by 2.5 million people every year. This population growth, along with one million marriages annually, is likely to drive demand for housing and other real estate developments.
As the population rises, there will be a need for more homes to live in. This will drive demand for new construction and investment in the residential real estate market. Additionally, the increase in the number of marriages will also lead to demand for new homes as many newlyweds will be looking to buy or rent their own homes.
INCREASED DIGITALISATION AND PROPTECH INNOVATIONS
The Egyptian government is pushing for a modern and efficient real estate industry that is in line with its Vision 2030 plan. This will likely continue the increased focus on digitalization and innovation in the residential real estate market. So, as an example, we could continue to see the introduction of more PropTech companies within the industry. RentUp, a leading PropTech startup in Egypt, launched its innovative reverse rental marketplace in Egypt towards the end of 2022. While a partnership between SHAL MLS and Core Logic focused on creating a more accessible and attractive Egyptian real estate market. Many other introductions of PropTech innovations in the MENA region also occurred in 2022. So, the launch of new PropTech innovations in Egypt is likely to remain strong in 2023.
Additionally, the introduction of innovations like the use of artificial intelligence and the internet of things is likely to remain strong too. We’ve seen this play out in Egypt’s New Administrative Capital with its smart city technology. So, with the Egyptian government's push to modernise the country’s real estate industry, innovations like these will likely continue within new developments.
CONTINUED PRICE STABILITY EVEN IN UNCERTAIN CONDITIONS
Despite a possible global recession, the Egyptian residential real estate market is expected to remain stable in price. This is due to many factors that have historically helped the market weather economic downturns.
One reason is the high demand for housing in Egypt. The country's rapidly growing population, as well as government policies aimed at promoting home ownership, has led to a consistent demand for housing. This demand is likely to remain strong even in the face of an economic recession, as people will still need a place to live. Additionally, the government policies and investment in infrastructure development, including building new cities and towns, will also attract more people to move and settle in these areas, which will increase the demand for residential properties.
Another factor that has historically helped the Egyptian residential real estate market weather economic downturns is the relatively low levels of foreign investment. The market is not as heavily dependent on foreign investors as other markets, which means that it is less vulnerable to fluctuations in global economic conditions.
Additionally, the government has been implementing policies to support the real estate market, such as offering subsidies to low-income families to purchase homes and providing tax exemptions for real estate developers to encourage them to build more affordable housing. These policies can help to mitigate the negative effects of a recession on the residential real estate market.
DEVELOPMENTS IN AND AROUND THE NAC
The New Administrative Capital (NAC) should continue having a significant impact on the real estate industry. The city is a major driver of investment and development in the region and is likely to attract many new residents, businesses, and investors. This could lead to the construction of new residential developments, as well as the expansion of existing ones.
As the development of the New Administrative Capital (NAC) continues, it is expected to attract many new residents, businesses, and investors. The city's strategic location, state-of-the-art infrastructure, and strong development opportunities are likely to make it a desirable destination for people and companies looking to move or expand.
With an increased interest in the NAC, the building of new residential developments should increase. Developers are likely to build more homes and apartment buildings to accommodate the growing population in the city. These developments could range from affordable housing to luxury homes. Many developments are also underway too like a range of projects by White Eagle Development.
Alongside the construction of new residential developments, the expansion of existing ones is also expected. Developers may look to add more units to existing buildings. They may also build new towers or compounds in the same area to meet the growing demand for housing in the city.
Overall, with continued growth anticipated, the Egyptian residential market has many promising developments likely to occur in 2023. Driving the market are factors that should increase investment and innovation growth. Yet, despite potential global economic challenges, the market should remain stable. It is therefore a strong time for the Egyptian property market with many projections to look forward to in 2023.
EXPAND YOUR REAL ESTATE KNOWLEDGE
Subscribe to the Cityscape Intelligence newsletter here