Experts in Egypt’s real estate market have suggested that the average property could rise in price by between 25 and 30 per cent over the coming year. Mohamed Fared, the chief executive of real estate marketing firm 8 Gates, said that prices are unlikely to fall any time soon, with stabilisation providing a diving board for values to climb. A number of other market experts revealed similar views, indicating that Egypt could be a wise choice for foreign investors wanting to make some fast returns on property acquisitions.
On the subject of the expected market for the year to come, Mr Fared explained that he sees significant growth in value for many residential homes. These rises can be attributed to two main factors, he suggests, the first of which is because there is high demand for low-risk residential investment units. In addition, currency devaluations, particularly those of the Egyptian pound against the US dollar, will allow prices to rise. It means that putting money into savings accounts would average an annual profit of 12 per cent, a low investment when compared against the potential returns real estate sales can offer. This is expected to bolster the market over the coming months.
A number of specific areas in Egypt are likely to see substantial gains in price, providing welcome returns for savvy purchasers who’ve bought with investment in mind. Regions set to see significant growth include Ain Sokhna, 6th of October City and Fifth Settlement. Ain Sokhna may be of particular interest to investors because it’s expected to experience the highest gains due to its close proximity to the nation’s new administrative capital. The area immediately surrounding Ain Sokhna has already undergone substantial redevelopment during recent years, with new services including schools, hospitals and other administrative buildings being built. As such, residential homes will benefit from a local increase in value. However, the demand for property across numerous parts of Morocco is strong at the moment, with Mr Fared revealing that new developments beginning their marketing phase often sold up to 60 per cent of their units within the same day of being launched.
Meanwhile, ERA Commercial Egypt’s vice chief executive of business development and research, Nada Kamel, suggested that the next quarter could see immediate gains in price of between 15 and 25 per cent. The devaluation of the Egyptian pound is pushing this trend, and because exchange rates are less stable than in 2015, home values could jump every time the pound drops further.
Talking about the prospect of rising property prices, ERC Commercial’s chief executive Mohamed Younis said: ‘Although we are expecting an increase in prices until the year closes, real estate will remain the safest and most secured asset for investment, and the preferred traditional form of investment as we Egyptians love and value owning properties.’
There is widespread agreement that gains will be experienced throughout the property sector, both from Mr Fared and Mr Younis. In addition, Ehab Galal from E-homes agreed that residential prices could soar by up to 30 per cent.