Country needs 500,000 new homes to be built annually for the next five years to meet demand, minister says
The Egypt Property Show (EPS) 2017, which concluded at the JW Marriot Marquis hotel in Dubai on May 7, showcased an array of ongoing and planned megaprojects in the North African country and saw participating Egyptian property developers shed light on their products and services.
According to a statement by the organisers, the Egyptian real estate market is an attractive one for direct investments today and offers substantial return on investments with high growth rates for regional and international investors.
Dr. Mustafa Madbouli, Egypt’s minister of housing, said real estate influences growth of around 90 domestic construction-related industries and employs 8% Egypt’s total labour force. The demand in the residential housing segment, in particular, is accelerating along with the country’s booming population. An estimated 500,000 new homes need to be built every year for the next five years to address the local housing demand, the minister said, quoting data released by his ministry.
Addressing a press conference in conjunction with the event, Dr. Madbouli said: “EPS is one of the opportunities for us to highlight our country’s growing real estate sector, put the spotlight on its important role in Egypt’s economic progress and attract investors from various parts of the world. The UAE is the perfect venue to help us accomplish these objectives as the Gulf country is home to a large expat base, a majority of whom are looking for investment opportunities in key property markets such as Egypt.”
Organisers also presented Egypt’s two major property developments, the New El Alamein City and The New Capital of Egypt. The New Al Alamein City, which will cover a 33.6 million square metres on the north-western coast of Egypt for its first phase, is touted as the country’s next tourism hotspot and feature modern residential facilities, the statement said.
The New Capital of Egypt, formally unveiled in 2015, is a new, as yet-unnamed city, located 45km east of Cairo and just outside the Greater Cairo Ring Road in a currently largely undeveloped area halfway to the port city of Suez, the statement added.
Once completed, it will become Egypt’s new administrative and financial capital, with various government bodies, ministries, and foreign embassies setting up their headquarters in the area. The new capital is expected to have a population of five to seven million.
Dr. Madbouli cited reports to inform that Egypt’s real estate sector witnessed exponential growth from 2013 to 2015, with a 30% increase in property investments in 2015 alone. More than 15 new projects were launched in 2016, he said.
The Egyptian Government has invested more than $2.37bn to sustain the sector’s upward trajectory and achieve its objective of increasing the number of new cities to 59 from 27 by the end of 2017, the minister added.