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Oxford Business Group: Egypt’s real estate sector showing promise

Real estate market has benefited in recent months from steady demand and reforms, resulting in new projects and investment funds.
20.04.17 | Interesting article at Oxford Business Group

In spite of Egypt’s macroeconomic headwinds, the country’s real estate market has benefited in recent months from steady demand and currency reforms, resulting in a busy pipeline of new projects and investment funds.

Bolstered by demand from the country’s 92m residents – and a housing deficit estimated to be as many as 3m units – several large developers have announced new or expanded plans for mixed-use projects.

On the sidelines of the Cityscape Egypt 2017 event, for example, local company Hyde Park Properties for Development announced a LE12.5bn ($692.3m) project to be built by 2023 on the north coast. The project, expected to break ground in July, will comprise around 1000 residential units, a hotel district and a commercial site located on 1m sq metres of land.

Similarly, ARDIC for Real Estate Developments unveiled a new phase of its LE1.2bn ($66.3m) Zizinia El Mostakbal project in New Cairo, which will have 45 buildings and 1800 units when completed in 2020.

A number of other mixed-use projects are expected to be announced in the near future, alongside larger developments such as the New Administrative Capital, a 700-sq-km city to be built east of Cairo with the potential to house 5m people.

A new way to invest

In addition to new projects, the sector is benefitting from other avenues for investment being made available.