Emp Latest News

Egypt's real estate sector: devaluation of Egyptian pound

      Foreign investors who are interested in buying properties in Egypt will be encouraged by the new Law 17/2015, which removes all restrictions on foreign ownership of property in Egypt. Many of the strict regulations and bureaucratic red tape that restricted foreign investment have been removed.

      Egypt’s flourishing real-estate market stands in contrast with the North African country’s battered economy, which has been struggling since an uprising ousted long-serving President Hosni Mubarak in 2011. A simple explanation for the heightened real-estate activity is that new housing cannot keep up with Egypt’s rapidly growing population. Demand, in other words, continues to outstrip the supply of new units. Egypt’s currency has plunged in value. Analysts say the fears of the Egyptian pound devaluation have prompted an even greater interest from Egyptians who see buying houses as a hedge against a weaker currency.

       In a research note, the Egyptian investment bank Naeem Brokerage said that all listed property companies should have an uplift in values following Monday’s decision by Egypt’s central bank to devalue the pound by 13 per cent – to 8.85 Egyptian pounds per US dollar, from 7.73 pounds.

      According to Oxford Business Group (OBG), public and private investments in the property market totalled EGP 47.5bn ($5.3bn) in the fiscal year (FY) 2014/2015, contributing to around 5% to GDP. OBG issued a report on the real estate market in Egypt at the end of May, saying that Egypt’s residential real estate market has recorded impressive results thanks to persistently high demand. The report highlighted that Egyptian expatriates look to capitalise on the weaker Egyptian pound, noting that investment properties are particularly popular for resale or rental. The report pointed out that the current market environment is drawing a range of domestic and international investors such as Palm Hills that has seen success with its Palm Valley West Cairo project and expects to deliver a total of 1,800 housing units in the current year.

      The rental market is at its lowest point for years and it should start accelerating soon. When it does, it should push the prices of properties in Cairo and elsewhere in Egypt even further. The rise in rental demand was 10% higher in 2015 than in 2014 and the growth is expected to continue in 2016 as well. In Cairo, the average rent per sq. metre ranges from $7 to $9 per month. It was $6 to $8 per sq. metre at this time, last year.

Projects from this area

The View Resort, Sharm El Sheikh, Egypt

This residential complex is located in Nabq Bay near 18-hole golf course.  

  • 5 minutes from the attractive sandy beaches of Nabq Bay;
  • 20 minutes from the bustling area of Naama Bay with its famous restaurants, bars and lively nightlife;
  • 5 minutes from the relaxing and elegant district of Soho Square.

The complex was built on a plot of 50.000 sqm with 80% employing beautifully landscaped terrain with artificial lakes and 4 swimming pools.

Project features:

  • 3 swimming pools, kids swimming pool
  • 3 artificial lakes 
  • Children pool
  • Beach with fees
  • Apartments with sea view  (available)
  • Communal  roof top
  • Shops, Restaurants
  • Laundry, parking
  • 24 hours security service
  • Satellite TV  
  • Maintenance
  • Spa & Gym (soon)
  • 4* Hotel (soon)

read more

Royal Sunny Beach, Sharm El Sheikh, Egypt

This project is located in El-Montaza in front of JAZ Belvedere hotel just 5 minutes from the airport, 400 M from the beach.

The latest integrated real estate development project, incorporating top quality design landscape, highest level of service, professional state of the art techniques offering residential including One, Two Bedrooms apartments and hotel 4 stars.

Is an integrated 232 apartment, 64 hotel flats & Commercial area (40.000 Sqm) over 80% of the land dedicated to lush green spaces, open areas and swimming pools.

 Key Features

  •  Swimming Pool View & Landscape From most of the Apartments;
  •  All the apartments are Sea View;
  •  Modern design, High quality building and European Style finishing.

read more

Click here to see all the projects from this area.