Real estate opportunities development and how it affects foreign investments

You know what is considered an investment asset? Real estate in Egypt has various cycles that are differently positioned based on their risk-return.

The first cycle, the riskiest yet the most rewarding as developers work on sold-off plans, which is the most active market in Egypt right now. On the other hand, it’s really unattractive for investors who are interested in the institutional part of the market as they prefer being involved in investments with lower risk, that’s why they usually enter the market after the constructions phase is complete as the cash flows are being generated steadily, also known as: Stabilized Investments.

This opportunity could be illustrated in three indicators; The first indicator is how the FDI was approximately $450 Million Pumped in the Egyptian real estate sector all over the country which represents 0.125% of the total GDP. The second indicator is how the UK has reached $95 Billion in 2020 through Investments in both commercial, and income generating real estate which represents 3% of their GDP. And finally, the third indicator states that the commercial income generating real estate had $762 Billion invested globally.

 The indicators discussed earlier indicate the potential to attract foreign investment to the real estate sector in Egypt, and hence, the economy.

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