Demand on residential units is expected to increase to approximately 115,000 units per year, according to Ian Albert, the Regional Director at Colliers International Middle East and North Africa, reported Daily News Egypt.
This compares to Colliers’ previous estimate, setting annual demand at 90,000 to 100,000 units annually. Albert also said that the real estate market is unlikely to occur anytime soon, in light of the low supply of units
Ain Sokhna and the North Coast are considered great areas for development amid high demand for luxury residential projects, Albert noted in an interview with Daily News Egypt.
A recession in the real estate market is unlikely to happen due to the low supply in residential units compared to the high demand, he said, noting that Greater Cairo is expected to witness a deficit of 400,000 units for middle-income citizens by 2020.
The real estate sector has remained vigorous in Egypt, providing a hedge against economic instability due to factors such as currency fluctuations, said Albert.
He also noted that the retail sector is witnessing increased investment, along with significant opportunities in urban regeneration, which is expected to restructure the real estate market.
Colliers International is a global commercial real estate company that has recently expanded its business in Cairo.