JLL: Record inflow of FDI and substantial support from regional developers
Despite headwinds and economic turmoil associated with the currency devaluation in Egypt, the value of projects awarded in 2022 represented approximately 21% of the total value recorded in the Middle East and North Africa (MENA) region, indicating a year-on-year spike since 2020. This was attributed to a record inflow of foreign direct investments (FDIs), which increased by 71% for fiscal year (FY) 2021/2022, as well as regional developers investing in critical infrastructure projects, highlighting a resilient real estate sector.
Although the International Monetary Fund (IMF) lowered its prediction for Egypt’s real gross domestic product (GDP) for FY 2022/2023 to 4%, Trading Economics recorded that FDI in the capital had reached an all-time high of USD 7.7 billion in Q1 2022 after merely averaging USD 2.8 billion since 2002. The pace of investment is driving the development of the real estate sector, as Egypt is commencing the development of 20 new cities, while also redeveloping some of its existing stock.