Press conference on Savills report in Egypt
CAIRO – June 16, 2021: Egypt’s economic expansion will moderate to around 4.5% between 2021 and 2022, but, from 2023, GDP growth is expected to return to pre-pandemic rates above 5, 5%, Savills Egypt chief Catesby Langer-Paget said on Tuesday.
“We can very well see the impact of Egypt’s economic expansion on the real estate market, as the market maintains its position and is seen as an attractive investment. In addition, it should be noted that falling interest rates in the market are positioning real estate assets as a safe haven for investment across the country, driving demand from local investors, Egyptian expatriates as well as foreign investors. foreign investors,” Langer-Paget added.
Savills, one of the world’s leading real estate consultancies, has launched its first report on real estate in Egypt. This report offers a comprehensive overview of the Greater Cairo real estate market, with an in-depth analysis of the residential, office and retail sectors.
Speaking at a press conference to announce the release of the Savills Egypt Property report, Langer-Paget said, “Marking our third year in Egypt, this report will be the first in a long series as this industry continues to thrive and develop. Globally, we publish hundreds of reports each year from our 650 offices around the world, which real estate professionals and investors rely on for current market trends and forecasts for the future. future in order to make the right decisions.
In addition, Head of Operations at Savills, Sherine Badreldine explains: “Reports show that the real estate market is maintaining its position and even growing in certain sectors; as in the case of the residential market where demand for units remained strong in Greater Cairo, bringing the current residential stock to 7.1 million units. In addition, in line with the expansion vision of the government and the Egyptian New Urban Communities Authority (NUCA), private developers are offering a variety of large mixed-use developments in both West Cairo and Downtown. new Cairo, resulting in a large increase in the supply of residential Class A housing developments, representing approximately 1.0% of total supply in 2020.”
Badreldine added: “The same goes for the office market: the demand for office space remains strong and is gradually increasing on a yearly basis in Greater Cairo. There has been a steady growth in the number of foreign companies that have recently established their operations in the city or expanded their footprint.
Finally, Zeinab Adel, Head of Strategic Consulting at Savills, explained: “The coming years will continue to be marked by an increase in residential demand driven by population growth. For the office market, demand for office space remains strong, however supply and demand patterns within the main office hubs are changing. With a current office supply stock of 1.7 million m² (end 2020), developers prefer to move away from downtown Cairo and Giza to organized mixed-use office parks, which offer a variety of amenities and sufficient parking space in Sheikh Zayed City and New Cairo.
Adel concluded that the report also linked change in the retail sector to demographic change due to a growing and affluent middle-class Egyptian youth. This change has been more widespread in recent years, especially in 2019, with the significant increase in the commercial GLA of the city with the handover of the Mall of Egypt and downtown Almaza, in addition to commercial strips of New Cairo and the expansion of Cairo. party town