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The Egyptian real estate market will continue to attract investments despite the pressures of currency devaluation and higher material costs, the Head of Savills Egypt said.
Catesby Langer-Paget told Zawya Projects that the country’s real estate market belied expectations of a slow down after devaluation.
“With the devaluation in March, we expected a slowdown; however, once the summer started, the market picked up again, especially in the North Coast.”
He added that in the current quarter, the market is picking up again, especially with larger developments.
But he cautioned that with several construction materials priced as per international prices, currency challenges directly affect their rates.
“The increase in construction costs will most definitely result in an increase in sales rates, directly affecting buyers and investors,” he noted.
Best Performers
The Savills Egypt head said currently, the offices market is the best performing real estate product in Egypt, followed by residential.
“The retail market, while it had the biggest potential, is currently on a major slowdown, as tenants are not able to fill in their stores with stock, as a result of the shortage in foreign currency and limitations on imports,” he explained.
Regarding the most promising region in Egypt, he said past few years saw the North Coast really take off, but the Red Sea holds huge potential for development.
He noted that mega projects like the New Administrative Capital (NAC) and infrastructure investments in areas like ports, railways and industrial zones are helping new cities gain better accessibility and connectivity.
“Industrial zones are definitely an area that has been gaining a lot of attention locally as well as from international investors,” he said.
(Reporting by Eman Hamed; Editing by Anoop Menon)
