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Egypt’s Real Estate Sector Rallies & Rides the Tide of Uncertainty toReignite its Glory Despite the ongoing effects of the COVID-19 crisis, Egypt’s propertydevelopers enjoyed a bumper Q3 last year, with sales turning positive on a YoYbasis, reflecting optimism for a quicker and more robust recovery over 2021,according to Invest-Gate’s latest market overview report, titled “Scope-Out Egypt’s Real Estate Scene in2020.” January 11, 2021 (Cairo, Egypt) - While surveying about 17 developerson the sidelines of Cityscape Egypt’s return last November to identify how theycope with the new normal, Invest-Gate’s R&A team explores thepost-Coronavirus supply and demand pillars to take a comprehensive look at theprospects for real estate in the year ahead, thereby putting together asummarized wrap up on the pandemic bang from all aspects.
“Research showed the ebb and flow ofactivity in Egypt’s real estate market since the inception of COVID-19 in March2020.
Many developers had felt more cautious over a property glut when theoutbreak first conquered the world, which triggered radical uncertainty aboutthe status quo and, as a ripple effect, depressing demand and supply rates asof Q1 2020,” says Invest-Gate CEO &Managing Partner Mohamed Fouad.
That comeson the back of the contact bans and curfews imposed by Egypt to curb the virusspread, not to mention the government-dictated precautionary measures.
All of this had a statistically significant negative effect on real estate sectorperformance for hampering the customary process of brokering and marketingproducts.
Although thesense of uncertainty is still unsettling, thanks to the resurgence of a secondCOVID-19 wave, the Egyptian real estate market has been rallying to navigatethe outbreak, therefore rising again and riding the tide of tension as of Q32020 to remain on pace for sustainable urban development in line with EgyptVision 2030.
In 2020only, at least 103,000 housing units have been built across various new cities,with combined investments of EGP 23.46 bn, says Minister of Housing, Utilities,and Urban Communities Assem El Gazzar.
From developing and upgrading Egypt’s infrastructure to gearing for the inaugurationof more than 20 new cities across the country, the government spares no effortto create conditions conducive to urban growth and to lay the foundations for amore vigorous economy moving forward.
Reconciliationin construction violations, digitization of all things real estate, developmentof a well-crafted mortgage finance system, and more initiatives are taken forboth public and private sectors to break through.
With thegovernment’s blessings, there is a maturing optimism from almost 88% ofInvest-Gate’s surveyed respondents about developers’ ability to continue work ontheir property projects across Egypt, thereby positively contributing to extrareal estate supply in the months to come. Better yet,65% of respondents plan to boost their supply in 2021 by launching new projectsand sticking to their schedules to deliver more units. However, some others areskeptical about market conditions and how things will stand in the near term.About 35% of responding companies would instead go in a wait-and-see mode tooptimize in the face of uncertainty.
Most of all,market players are optimistic for a much stronger real estate sector that willbounce back even more potent in 2021.
Hopes arehigh that Egypt’s robust property market can help the doing business remainvibrant in the near term, even against more enormous economic headwinds showingup on the run, Invest-Gate’s R&A concludes …
For the full analysis. It is no news that Invest-Gate’sR&A team is continuously on the pulse of Egypt’s realty sector, puttingparticular emphasis on understanding market conditions and circumstances in thewake of Coronavirus to figure out the influence gauge of this ongoing calamity.To take a peek at our parade of market research reports.
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