Market Watch Q2 2024: Egypt Real Estate Dynamics, Trends, and Investments Prospects
∙ The Egyptian real estate market is characterized by a strong presence of residential and mixed-use projects. These sectors hold a significant share of the market, with 654 ongoing projects valued at a substantial $307,182 million.
∙ Notably, this represents roughly 53.9% of the total number of projects and a dominant 67.4% of the total investment value.
∙ The private sector remains the driving force behind Egypt's residential real estate market. Over 68.6% of ongoing residential projects, valued at a substantial $210.674 billion, are being developed privately. This translates to a dominant 87.3% share of all residential projects by the end of Q2 2024.
∙ Notably, this represents roughly 53.9% of the total number of projects and a dominant 67.4% of the total investment value.
∙ The private sector remains the driving force behind Egypt's residential real estate market. Over 68.6% of ongoing residential projects, valued at a substantial $210.674 billion, are being developed privately. This translates to a dominant 87.3% share of all residential projects by the end of Q2 2024.
Market Prospects:
∙ Egypt's diversified economy remains vulnerable to global and regional challenges. The Russia-Ukraine war has intensified inflationary pressures by driving up food and fuel import costs. Moreover, Houthi attacks on ships in the Red Sea and Gulf of Aden have curtailed Suez Canal traffic by nearly 60% compared to pre-crisis levels.
∙ As canal transit fees account for approximately 10% of Egypt's current account revenue, these disruptions pose a significant threat to the Egyption economic stability.
∙ Egypt's GDP expanded by 2.22% in Q1 2024 compared to the same period in the previous year, reaching a nominal value of 3,390 billion Egyptian pounds. This growth was underpinned by the successful implementation of the floating exchange rate.
∙ As canal transit fees account for approximately 10% of Egypt's current account revenue, these disruptions pose a significant threat to the Egyption economic stability.
∙ Egypt's GDP expanded by 2.22% in Q1 2024 compared to the same period in the previous year, reaching a nominal value of 3,390 billion Egyptian pounds. This growth was underpinned by the successful implementation of the floating exchange rate.
