Egypt’s real estate market to recover in 2022: Developers
Egypt’s real estate developers expected the local market to rebound in 2022, saying that demand for real estate will come back sharply over the next year, coinciding with the economic recovery from the effects of COVID-19.
During the real estate conference “Real Estate Market Transformation: Trends and Opportunities” organized on Monday by the American Chamber of Commerce in Egypt (AmCham), said Magued Sherif, C0 Chairman of AmCham and Managing Director of SODIC: faced, a boom is expected in the coming period, especially with the start of real estate companies in order to diversify their products as well as meet the needs of the market. “
Similarly, Hazem Helal, commercial director of DMG, said that despite the challenges of the COVID-19 pandemic, Egypt’s real estate sector has increased 8% since the start of the year and hotel occupancy has increased 46%.
Helal added that expatriate air travel to Egypt has increased 150% and the average property unit on offer has increased 10%.
He also stressed the need to rethink some of the government’s laws for the local real estate sector to encourage more developers to enter the market, noting that the real estate sector was one of the most promising sectors in the next decade.
Ashraf Ezz El-Din, Managing Director of Al-Futtaim Group Real Estate, said that the real estate market is facing many challenges, most notably the stability of legislation, and stated that the market needs the stability of laws and laws that the Real estate companies regulate ‘businesses to stabilize the market.
He continued, “We are working to make new investments in the period ahead and do not want to be caught off guard by future decisions that will affect these plans.”
Hisham Mousa, Redcon’s CEO for Offices and Commercial Centers, said the Covid-19 pandemic hadn’t changed much in home decor, particularly the remote working conditions imposed by the pandemic.
Mousa added that companies are taking into account that residential units are more flexible and spaces are suitable for ventilation and long hours.
He did not call for the need for clear real estate legislation and its amendment to ensure that the largest possible number of real estate investors enter the market.
Regarding the magnitude of the impact of increasing consumer reliance on e-commerce, Ezz El-Din said online shopping in Egypt, despite its recovery during the COVID-19 period, has so far not affected malls, pointed out indicated that the number of visitors to shopping centers connected to Al-Futtaim in Egypt reached 109,000 visitors last Black Friday.
Nagui Fahmy, Chairman of the Egyptian Union for Mortgage Financing and Head of the Finance Committee and CEO and General Manager of CI Capital Holding, stated that the current mortgage financing model needs to be evolved to revitalize the market.
He said: “There are a number of funding alternatives that will help support the mortgage financing system and provide long-term funding opportunities that will stimulate market recovery and support the growth of the sector.
Nehad Adel, president of B2B for investment and real estate marketing, said 80% of real estate sales in the past two years are through real estate marketers.
Adel stated that real estate agents are the main agents promoting some areas in which the government is developing, namely New Administrative Capital, New Alamein, and others.
He announced that the real estate marketing sector needs to be regulated in the coming period, especially as the Egyptian Brokers Association, the official regulator of the sector, is affiliated with the Ministry of Industry and Commerce.
For his part, Karim Zein, CEO of Coldwell Banker, said the real estate development sector contributes around 20% of GDP, with real estate marketers accounting for around 50%.