By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Net FDIs recorded $8.9bn in 2022, highest since 2011: Hossam Heiba at AmCham
    Net FDIs recorded $8.9bn in 2022, highest since 2011: Hossam Heiba
    March 20, 2023
    Could this be the year for Tobacco Harm Reduction?
    Could this be the year for Tobacco Harm Reduction?
    March 20, 2023
    Strong presence of Egypt’s real estate developers in MIPIM in Cannes
    Strong presence of Egypt’s real estate developers in MIPIM in Cannes
    March 20, 2023
    Raaed Developments launches ROOTS compound in New Sohag with EGP 1.8bn investment
    Raaed Developments launches ROOTS compound in New Sohag with EGP 1.8bn investment
    March 20, 2023
    Tatweer Misr signs MoU with Saudi Arabia to facilitate investment opportunities in Kingdom
    Tatweer Misr signs MoU with Saudi Arabia to facilitate investment opportunities in Kingdom
    March 20, 2023
  • Politics
    PoliticsShow More
    Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
    Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
    March 21, 2023
    Chinese President Xi meets Putin in Moscow
    Chinese President Xi meets Putin in Moscow
    March 21, 2023
    UN envoy says solution "closest" to end political crisis in Sudan
    UN envoy says solution “closest” to end political crisis in Sudan
    March 20, 2023
    20 years on, George W. Bush’s promise of democracy in Iraq and Middle East falls short
    March 20, 2023
    Iraq 20 years on: researchers assess how US invasion shapes lives today – podcast
    March 20, 2023
  • Interviews
    InterviewsShow More
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    March 15, 2023
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    March 12, 2023
    EGX ready for government’s IPOs programme: Chairperson
    EGX ready for government’s IPOs programme: Chairperson
    February 15, 2023
    British International Investment invests $4.5bn in 700 businesses across Africa: Sherine Shohdy
    February 15, 2023
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    December 27, 2022
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Real estate likely to be Egypt’s largest source of GDP
Share
Notification
Latest News
Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
Politics
Chinese President Xi meets Putin in Moscow
Chinese President Xi meets Putin in Moscow
Politics World
Toyin Falola: 3 recent books that explain the work of Nigeria’s famous decolonial scholar
Culture
UN envoy says solution "closest" to end political crisis in Sudan
UN envoy says solution “closest” to end political crisis in Sudan
Politics
Net FDIs recorded $8.9bn in 2022, highest since 2011: Hossam Heiba at AmCham
Net FDIs recorded $8.9bn in 2022, highest since 2011: Hossam Heiba
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Real Estate > Real estate likely to be Egypt’s largest source of GDP
Real Estate

Real estate likely to be Egypt’s largest source of GDP

Shaimaa Al-Aees
Last updated: 2021/02/28 at 11:01 AM
By Shaimaa Al-Aees 7 Min Read
Share
SHARE

A state of optimism prevails over developers and real estate companies in Egypt, with many highlighting that the real estate sector will see a strong breakthrough during the coming period.

Developers highlighted that the local real estate sector would be more stable in 15 years’ time. It has, in turn, enhanced the confidence of investors and those wishing to invest in real estate, both inside and outside Egypt, and is set to attract more foreign direct investments (FDIs) in the sector.

Moreover, some real estate developers made it clear that, over the next 15 years, the real estate sector will be the first contributor to Egypt’s GDP at twice the current rate.

According to the Egyptian Businessmen’s Association (EBA), Egypt’s real estate investment and urban development account for 16% of GDP. Meanwhile, the share of the Egyptian private sector in the volume of executed project investments is 70%.

Real estate sector would see more FDIs

Amr Soliman

Mountain View Chairperson Amr Soliman expects that within the coming 15 years, demand for real estate would grow, alongside the government’s keenness to support urban development. This falls in line with Egypt’s Vision 2030, as well as the fast track development underway in new cities.

Soliman further said that the New Investment Law has, without a doubt, given life to foreign investments in Egypt. The Law is one of the bright beacons of hope created by the last parliament and represents fruitful results of its work. It rids investors of red tape and administrative bureaucracy that disrupted the establishment of important projects.

“We are embarking into a new era that will improve the investment climate for both domestic and foreign enterprises and reinforce our position on the international map,” he noted, “We are certain more FDIs will roll in, thanks to the stimulus packages and new incentives provided to investors across the board.”

Soliman highlighted that the Federation of Real Estate Developers Law, which is being discussed currently by the new parliament, will play a significant role in managing the market and is the most important step for better market regulation.

On the other hand, the real estate tax law needs to be reconsidered and restructured, to serve the state by generating a return on the economy in the coming 15 years.

Developing new cities meets demand for property

Ahmed El Adawy

Inertia Egypt’s CEO Ahmed El Adawy said that the launch of mega projects in new areas are creating new investment and job opportunities, whilst fuelling the demand for housing, and thus increasing real estate projects.

El Adawy added that the demand in this sector ranges from 700,000 to 1 million units annually. As a result, the ongoing development and construction of 20 new cities across Egypt, in addition to the development of the 23 existing new cities, is crucial to fill the gap between the supply and demand. 

Accordingly, residential development will largely remain the domain of the state, owing to the fact that large-scale housing projects must be affordable enough for the average Egyptian.

He elaborated that constructing new integrated urban communities that have residential and non-residential elements are of great importance. This has already become clear in the projects that are currently being developed, such as the New Administrative Capital (NAC), New Alamein, Galala City, and Jefaira.

Egypt’s urban area to double

Mohamed Albostany

Mohamed Albostany, President of the New Cairo and New Capital Developers Association and Vice President of Real Estate Investment Division, said that in the next 30 years, Egypt will see an increase of urban area to reach 12%. This will compare against the 7%, the current urban area according to Egypt’s Vision 2030 and 2050.

Albostany also said that the local real estate market is currently experiencing: the development of new roads and transportation systems; lower interest rate; development of infrastructure; provision of a greater number of units in national projects; as well as the completion of development of some fourth generation products.

All of these factors will lead to a very large development in Egypt’s real estate market in the coming years in terms of investments, expansions, as well as in the diversity and increase in real estate products.

He further noted, “After 15 years, Egypt could manage to export its property [selling units to foreigners] in a proper way that suits its positions and capabilities.”

“Additionally, the market may see mergers and acquisitions which creates new entities with more experience and more capital flow to develop projects in a professional way,” Albostany added.

Retail market projected to grow 4% y-o-y

Timothy Earnest, Group Director/CEO Al-Futtaim Malls, said that the outlook for Egypt’s retail sector is positive due to growth expected in population and in income in the middle-class category.

The sector is also likely to be affected by the increased tourism coming into the market in the coming period, besides, more opportunities are projected for foreigners to own a second home in Egypt.

Earnest added that during the coming 15 years, the marketplace will experience a great shift due to developing infrastructure and transportation systems.   

He projected a solid growth rate for retail market ranges between 3-4% year-on-year (y–o-y), thanks to availability of potentials and capacities that would lead to this real growth.

“COVID-19 has accelerated the digitalization especially in markets that relatively still immature or new,” Earnest said, “I think in the coming period, retail companies would have to combine both fiscal visits to malls and virtual visits or buying online from mobile phones to keep real and professional contact with client and this combination has proven its efficiency in recording more selling transactions.”

You Might Also Like

Strong presence of Egypt’s real estate developers in MIPIM in Cannes

Raaed Developments launches ROOTS compound in New Sohag with EGP 1.8bn investment

Tatweer Misr signs MoU with Saudi Arabia to facilitate investment opportunities in Kingdom

DNE Awards honours Saudi Egyptian Developers for “Best diversified 50 landmark projects developed within 50 years”

DNE Awards honours DORRA GROUP for their incredible 80th Anniversary achievement 

TAGGED: GDP, Real Estate
Share this Article
Facebook Twitter Email Print
Previous Article Egypt’s Ministry of Electricity and Renewable Energy is negotiating for new renewable energy projects with a total capacity of 1,000 MW, Mohamed Shaker, Minister of Electricity, on Wednesday told Daily News Egypt. Egypt needs long-duration energy storage to incorporate renewables: Electricity Minister
Next Article Al Sallab Egypt to provide industry map soon as largest investor guide: MP Mohamed Elsallab
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
Xi says China will continue to play constructive role in promoting political settlement of Ukraine crisis
Politics
Chinese President Xi meets Putin in Moscow
Chinese President Xi meets Putin in Moscow
Politics World
Toyin Falola: 3 recent books that explain the work of Nigeria’s famous decolonial scholar
Culture
UN envoy says solution "closest" to end political crisis in Sudan
UN envoy says solution “closest” to end political crisis in Sudan
Politics
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?