May 08, 2022

How is the real estate market in Egypt?

How is the real estate market in Egypt? | Discussions Egypt #2962 - 1  image

How is the real estate market in Egypt?

Here we can give you an initial overview showing how the real estate market has developed in Egypt over the past years, according to the 2017 stats:

The number of buildings in Egypt reached sixteen million and 185 thousand buildings according to the census in 2017, compared to 11 million and 594 thousand buildings in the 2006 census, an increase of 5.39%, representing 2.91% of the buildings designated for housing, and the real estate wealth is estimated at nearly 3 trillion Egyptian pounds. There are many forms of real estate wealth in Egypt between lands capable of urban development and lands occupied by buildings and the buildings on them.

The real estate market in Egypt has gone through many stages like other real estate markets in the Arab countries, including changes in laws, including stagnation due to international conditions, and due to the conditions of the Covid virus pandemic that affected the whole world.

But the real estate market in Egypt is considered a market of great importance in the region, for several reasons such as the large size of Egypt, and because of its huge population, in addition to the fact that the new laws helped the real estate development in Egypt to grow rapidly.

The most important laws that helped the real estate market in Egypt thrive and develop:

1- Controlling, identifying and documenting state lands, so that they become raw land ready for investment and suitable for real estate development projects.

2- Activating the role of the real estate tax system in order to limit violations in the old building, and to regulate the process of modern construction.

3- Amending the old systems of renting, and building new suitable systems that guarantee the rights of the owner and the lessor of real estate.

4- Paying attention to the real estate appraisal process, which determines the real value in the real estate market, and this makes investing in the real estate market in Egypt safer and more confident.

5- The Real Estate Finance Law of 2001 contributed significantly to the boom in the real estate market in Egypt.

Today, how is the real estate market in Egypt?

Previous laws contributed to determining the direction of development for the real estate market in Egypt, but circumstances beyond our control, such as the period of the global pandemic or other international conditions, slowed the progress of prosperity a little, but they were unable to prevent it from progressing.

Today, the real estate market in Egypt is heading towards prosperity thanks to many factors, including:

1- Egyptian banks reduced the interest rates on real estate investment loans in Egypt.

2- Foreign investors entering the real estate market in Egypt and starting huge projects.

3- The opening of the new administrative capital of the State of Egypt contributed to raising the demand for new real estate investments.

4- It was announced the establishment of twenty modern civilized cities in Egypt from the fourth generation, in addition to the development and expansion of more than twenty ancient cities.

5- Huge projects have emerged, funded by the private sector, in partnership with the state.

6- The New Construction Law and the Reconciliation Law were implemented, and construction was halted for a period of seven months in order to organize the real estate market in Egypt last year and define its new features to launch future projects.