BMI View: The Real Estate sector in Egypt will continue to stagnate as the economy h as yet to recover and political unrest continues. W e believe that rental rate s will rise in Cairo, New Cairo, and 6th of October City due to a stagnation of new supply , combined with slightly increasing demand, especially for space in safer suburbs such as New Cairo and 6th of October City. Nevertheless , future political turmoil might affect negatively all sectors, but specifically Cairo and Giza as businesses flee to the safety of the outskirts.
Egypt has long-term potential, which is being undermined by the steady risk of instability and will be characterised by the aftershocks of the Arab Spring in the short-to-medium term. It is unlikely to have a swift economic recovery in Egypt, although we remain confident in the long term, our most recent data continue to reveal the tangible effects of Egypt's uneasy political transition on the commercial real estate market, with retail space suffering particularly from the country's volatility due to its dependence on tourism.
The Egyptian economy is stuck in a negative spiral, which it does not appear likely to escape soon. Frequent outburst in violence needs to end and greater clarity on the medium-term policy trajectory are required for Egypt to recover, however, we are least optimistic that these requirements are met in the near term. Much is often said about the need to sign a long-awaited IMF Stand-By Arrangement, which would certainly help the country by providing a key source of external financial assistance and forcing necessary structural economic reforms. Egypt by remaining unpredictable, its economy will take time to recover from both the economic crisis as well as its multiple coups, and the less FDI will come in as investors move on to more stable nations.
Egypt currently has a decent supply of office stock, mainly utilised by the energy and banking sectors. While supply is slowly increasing, the political...
The Egypt Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's Egypt Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Egypt.
- Benchmark BMI's independent real estate industry forecasts for Egypt to test other views - a key input for successful budgeting and strategic business planning in the Egyptian real estate market.
- Target business opportunities and risks in Egypt through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.
Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.
Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.
Industry Forecast Scenario
Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:
Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)
Business Environment Rankings
BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.