“This market has the potential to attract a large number of foreign investors as the cost per metre is highly competitive and real estate companies in Egypt are notexpanding their marketing efforts to reach them,” he says.
“Purchasing property offers many possibilities in the form of re-assignable off-plan contract options, to sell at a substantial profit prior to completion, or buy-to-let situations to generate reliable rental income and eventually substantial capital appreciation of between 20 – 30%.
Steady annual growth in tourism figures, attracted by our touristic hotspots, our landscapes, culture, history and of course our climate and finally with generally low cost of living, ensures that the latter group can reap potential rewards,” he explains.
Coupled with this, strong economic growth, investment in infrastructure, low property taxes, no capital gains tax, are boosting the property market, says Shalaby.
It’s a sentiment echoed by Ashraf Farid, Chief Business Development Officer at Marakez.
“The economic reforms undertaken by the Egyptian government over the past couple years have proven to be efficient as more investors are entering the country and existing
investors are studying and expanding their portfolio of projects and services. According to a statement by Minister of Planning, Dr. Hala El Saeed, the private sector is expected to take the lead in driving economic growth to contribute around 62% and 65% in the coming fiscal year. The government has also introduced a number of procedures to enhance the business environment and attract more investments including the new industrial license investment law and bankruptcy law, among others,” he explains.
Tatweer Misr and Marakez will both be showcasing their projects at this year’s show. Tatweer Misr will show UAE audiences Bloomfields, its recently launched mixed-use
project in Mostakbal City, the North Coast’s Fouka Bay, and its flagship project IL Monte Galala in Ain Sokhna.
While Marakez will showcase AEON Towers, the first 72m-high towers in 6th of October, which is adjacent to Mall of Arabia, one of the largest shopping malls in the city, and their newly launched residential compound in New Cairo, District 5.
For investors, Ayman Sami, Country Head, Egypt at JLL, says that a new investment law announced last year could expediate the process and alleviate red tape.
“Designed to eliminate bureaucracy and promote new opportunities to a wider pool of investors, the government has recently further streamlined the processes through a one-stop shop at the General Authority for Investment & Free Zones,” he says.
The law will aim to attract investment into real estate and other sectors by removing long standing bureaucratic obstacles. Among the proposed changes are relaxations on foreign ownership, tax windows, and the easing of the current restrictions on the repatriation of capital.
In addition, earlier this year the government announced that it would offer citizenship to foreigners who deposit at least 7-million Egyptian pounds (USD392,000) in the
country, if they surrender the deposit after five-years.
Spotlight on New Administrative Capital
In 2015, Egypt announced it would be building the New Administrative Capital – while the official name is still a work a in progress – the new city is gaining significant traction among local and international investors.
The government-backed project, once complete, will be the administrative capital of the country and will house up to 7-million people, including the government, Presidential palace, businesses, and a young, professional population, and is expected to stimulate the economy by offering thousands of jobs.
Span 700 sq. km, making it almost as large as Singapore, the New Capital is expected to house Africa’s tallest tower and include substantial green space – twice the size of
New York’s Central Park.
Designed by the late Zaha Hadid, the government is working with project developers to design the tower that will rise 70 stories. Overlooking views of Cairo, the Nile and
the pyramids, the project looks to symbolise Egypt's growth and the development of the country.
The design features 36 floors of luxury apartments, a casino, spa, night club, shopping area and a 230-key hotel. The surrounding area has begun to see a surge of development projects as the heart of Cairo sees an increase in investment.
According to Ayman Sami, Country Head, Egypt, JLL, Cairo’s population is expected to hit 40 million by 2050 and competition for housing is fierce in the capital.
“In 2017, sale prices in New Cairo spiked by 50% and, while housing in the new city will likely be only slightly more affordable than current Cairo, it promises a cleaner, greener, more sustainable way of life,” he says.