Egypt’s commercial real estate stock maintains its position as a cost-effective investment, which is positive for foreign direct investment.
The new cities like the New Administrative Capital (NAC), New Alamein, and New Mansoura to name a few provide potential investors with attractive, large-scale real estate project opportunities. Demand is predominantly for income-producing office and retail assets, though there is increasing interest in industrial facilities on the back of positive market conditions.
Cairo continues to be the focus of commercial real estate investment activity, with moderate demand across the board, particularly for prime office and retail space. Meanwhile, a strong tourism sector boosts demand for retail facilities in Giza. However, as commodity prices rise and inflation soars.
Office market in Egypt will decline in the short-to-medium term, but a lack of supply of prime space will be supporting the top of the market.
The Egyptian retail real estate sector benefits from the continuing popularity of bricks-and-mortar stores, despite a recent rise in e-commerce. With many Egyptians having low income, consumption is still focused on essential products and informal retail is still prevalent.
Informal retail formats remain prevalent in Egypt, particularly in non-urban areas. However, the retail landscape is becoming increasingly formalized. International retailers continue to enter and expand in the country, particularly through franchise agreements with regional firms. Egypt’s large, growing, and youthful population is driving modernization, resulting in growing demand for foreign brands across several sectors.
The country has ambitions to become a central logistics hub in Africa as evidenced by investment in road, port, and airport projects and strong demand for industrial space in the port city of Alexandria, as well as the development of new cities and industrial areas.