Egypt has one of the strongest economies in Africa. Its robust economy grew at 5.3% in 2018. The economy is expected to grow by 5.5% in 2019. This is a significant leap from the 2017 report of 4.2%. Even though the economic outlook is generally great, the real estate sector has taken a downturn.
Cost of housing is falling rapidly. In the first quarter of 2019, the real estate index fell by 11.7%. During the same period in 2018, the y-o-y growth was 18.2%. Although this is a great time for buyers, the long-term outlook is excellent for real estate developers. Egypt’s population is increasing by about 2.5 million annually.
The demand for housing is estimated to be 52,000 annually. However, developers are currently only able to provide 20,000 units. This is one of the reasons why Egypt is attractive to investors. The opportunities are immense and given future projections, it is a great time to be a developer in real estate.