Egypt’s demand for property allocated to healthcare by 2025 stands at 4.4m sqm of hospital space with investments worth EGP 40.5bn, and 2.7m sqm of clinics space with investments of EGP 17.8bn, according to a Colliers International report on Sunday.
The report stated that Cairo alone requires an additional 4- 5 hospitals annually in order to meet the demand. Further, the estimated 10-year demand for Cairo stands at 700,000-875,000 sqm of hospital space.
Colliers added that the demand for clinics space in all governorates is estimated at 2.7m sqm; the demand in Cairo is estimated at 500,000 sqm over the next 10 years.
Colliers noted that this demand in turn offers significant opportunities for long-term sustainable returns to real estate developers and investors.
“At present, significant clinic demand is being serviced by office and residential space. Even if 50% of the doctors buy or rent the clinics, Egypt with all governorates still requires 1.35m sqm of clinics space and Cairo needs 250,000 sqm,” Colliers said. “Hospital buildings are low risk profile and clinics can be sold off-plan”.
Therefore, Colliers called on investors to build the required healthcare properties to meet current demand, especially in light of increased competition and demand for higher quality. Real estate developers would need to cooperate with operators to create healthcare facilities that need to be creative and efficient to meet the increasing requirements of the healthcare sector.
Colliers pointed out that Egypt would require an additional 35,000 hospital beds over the next 10 years, while Cairo and Giza would require an additional 7,000 beds. Meanwhile, Egypt requires an additional 6,000 doctors across all governorates annually, while Cairo and Giza require 1,100.
Regarding the quality of service, Colliers said that Egypt has acquired a strong reputation among North, East, and West Africa and the Gulf Cooperation Council of having high-quality doctors and infrastructure at “cost-effective” fees.
Colliers International has completed over 300 projects throughout the region in the last five years, as it was awarded the “Best financial advisor” for healthcare and education in the Middle East and Africa by the World Finance Magazine, United Kingdom in 2013.
Moreover, Colliers has marketed and conducted financial feasibility studies for a number of healthcare-related projects in Egypt in the last two years, including Rehab hospital, a healthcare complex (including clinics for sale and lease) in Moqattam, and the business valuation of a chain of clinics in Cairo. Besides, the company marketed and conducted financial feasibility studies of a healthcare complex (including clinics for sale and lease) in Al-Nasr area, Cairo.