The report on Egyptian real estate for the second quarter of 2022 from the analytical agency Fitch Solutions says that this type of investment still yields very high returns, which is great news for direct foreign investment.
According to Fitch, the power of this sector and the general situation there encourage investment, as 20 new cities are under construction and active development is ongoing in 23 existing cities.
Reforms by the Government of Egypt that create favorable conditions for doing business and incentivize the private sector activity in the economy, as well as investments of over $25 billion promised by Saudi Arabia, the UAE, and Qatar will partially offset the slowdown in public investment. To reduce the government’s role in the economy and improve the business climate, additional foreign investment needs to be attracted.
The report also emphasizes that Cairo remains a major investment destination for commercial real estate. A moderate demand persists for all types of properties in this city, particularly first-rate office spaces and retail premises.
The Egyptian market of industrial real estate is also particularly active in industrial hubs located near Alexandria and Cairo. Construction of a new logistics facility in Cairo and integration of a more modern property stock also stimulate the demand for industrial assets, driving up the rent.