Egypt’s real estate market is witnessing robust demand, as a result introducing new city developments as part of large-scale real estate projects, according to Fitch Solutions’ Egypt Real Estate Report.
The report, which includes five-year forecasts extending to 2024, noted these new large-scale projects include the New Administrative Capital (NAC), New Alamein, and New Mansoura.
Fitch added that the ongoing development and construction of 20 new cities across Egypt, in addition to the development of the 23 existing new cities, present attractive investment opportunities in the country.
The impact of the novel coronavirus (COVID-19) pandemic is expected to be far less than Egypt’s western counterparts. This has been attributed to Egypt’s never having gone into full lock down during the first wave of the virus in the first half (H1) of 2020.
Despite lower GDP and household spending levels remaining flat, Fitch added that it expects growth in rentals to remain positive in 2020. Demand for retail units will subsequently improve, with rental rates increasing in general.