The market of real estate in Cairo remains one of the most promising segments in the international arena. Houses and apartments in the Egyptian capital continue to attract investors and end users. The attention of the former can be explained by the developed tourism industry of the city, which creates a constant influx of tenants and buyers. The latter are interested in local residential units because they offer high-quality finishes, elegant designs and a wide range of amenities at affordable prices. Continue reading this article to discover the current cost of real estate in Cairo in dollars and the prospects of its market.
- Cairo real estate market overview
- Dynamics of prices and rents in Cairo
- What will the Egyptian real estate market look like in the future?
- Areas with affordable real estate
- Areas with luxury real estate
- We will help you buy a property in Cairo
In 2021, the construction of approximately 19,000 properties was completed, as a result of which the total housing stock of Cairo reached about 227,000 residential units. By the end of this year, another 29,000 properties are expected to be commissioned, with most of the new projects located east of the center. However, recent spikes in the cost of labour and construction materials may lead some construction companies to suspend development to prevent cost overruns.
In the second quarter of 2022, about 4,000 apartments and 3,000 houses were put into operation. As a result, the total housing stock reached 234,000 properties. At present, the growth in the cost of real estate and rentals in the capital is related to new projects. In the coming months, the market will obtain another 22,000 residential units.
Activity in the residential sector slowed down in the second quarter of this year due to the difficult economic situation. To contain rising inflation, Egypt's central bank raised interest rates overnight by 200 basis points in May 2022. This significantly reduced the demand of potential real estate buyers who were planning to take out a mortgage loan.
Local developers have also been affected, and are raising prices to negate the higher cost of building materials and labour. This was also done to help generate cash flow to manage expenses related to ongoing projects. In addition, such a solution will allow development companies to continue offering attractive projects to new buyers. However, as mentioned above, some of them are not ignorant of the possibility that the launches of some projects will be postponed until the economic situation stabilises.
Landlords in the secondary market have also increased rentals to compensate for the decline in purchasing power. This factor led to changes in real estate prices in Cairo, or to be more precise, to their annual growth of 8% as of October 6th (Satellite City and part of the urban area) and 12% in New Cairo in the second quarter. Meanwhile, rental rates in the secondary market grew much more slowly – by 3% and 1% by October 6th and in New Cairo, respectively.
The Egyptian Financial Regulatory Authority held a meeting to discuss proposals from the Real Estate Development Chamber. The recommendations included simplifying the rules for approving mortgage financing to purchase off-plan residential units and removing the restriction prohibiting installments of over 40% of income. In addition, in June, the government took an important step to protect persons acquiring off-plan properties by introducing a new citywide escrow law.
The annual volume of retail sales in the Egyptian market is expected to grow to $160 billion in 2023. This is due to an increase in consumer spending. As consumer spending increases, the demand for commercial and residential real estate will remain high.
In Old Cairo, in particular, in Shobra and Imbeba, you can buy apartments for $10,000. In these locations, you can find the lowest prices for apartments in Cairo in 2022. But do such residential units offer comfortable conditions? Over the past few centuries, the government has not repaired old buildings. In addition, locals cannot go out in shorts and with a backpack, as in popular Egyptian resorts.
Affordable properties are also available in El Nasr City, Mohandiseen, Shiruk City and Madinet Nasr. The cost of a local square meter can vary between $400 and $800.
The most expensive apartments and houses in Cairo are put up for sale in Zamalek, Heliopolis and Garden City. Let's take a closer look at these locations:
- Zamalek. The community is located in the northern part of Gezira Island and is washed by the Nile. It is connected to the rest of the Egyptian capital by several bridges. As the area is the most prestigious and secure location in the city, local properties are in great demand from wealthy buyers and tenants. Most sellers do not advertise housing prices in Zamalek, but, as a rule, the cost per square meter exceeds $1,000.
- Heliopolis. When this area was being constructed, it was positioned as a future satellite city, but eventually became part of Cairo. Multi-storey residential complexes, government offices and office centers in Heliopolis are executed in a modern architectural style. The cost of local apartments starts from $250,000. Their area can vary between 100 and 250 m2.
- Garden City. This community depicts a British representation as it was designed by the British. Currently, there are several embassies on its territory, thanks to which, the area is considered prestigious and safe. Walking through its crowded streets, you may come across celebrities. The average cost per square meter of local housing and apartments is $1,000-$1,200.
To find a property that will suit your tastes and financial capabilities, please visit the official website. Its catalog contains the best villas, duplexes, studios and apartments in Cairo. Highly qualified specialists are customer-oriented and can provide an individual approach to each situation. Therefore, whatever goal a potential emigrant pursues, he will achieve it.