BMI View: The real e state sector in Egypt remains in a state of flux in Q414, facing short-term stagnation as a result of political instability despite the market's significant long-term potential. While we are witnessing some alleviation in the political and economic conditions that have plagued the sector in recent months, we do not expect the commercial real estate market to recover its previous dynamism any time soon.
Egypt has long-term potential that is being undermined by the steady risk of instability, and the country will feel the effects of the Arab Spring in the short-to-medium term. A swift economic recovery in Egypt is unlikely, and although we remain confident about the long term potential, 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.
Frequent outbursts in violence need to end, and greater clarity on the medium-term policy trajectory are required for Egypt's recovery. We are not very optimistic that these requirements will be 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. By remaining unpredictable, Egypt's economy will take time to recover from both the economic crisis as well as its multiple coups, and less foreign direct investment will come in as investors move on to more stable nations.
Egypt currently has a decent supply of office stock, mainly used by the energy and banking sectors. While supply is slowly increasing, the political events within Egypt are complicating things by increasing the demand for more secure spaces, often on the outskirts of Greater Cairo (such as in New Cairo or 6th of October City). Indeed,...
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.