Egypt’s real estate sector is experiencing steady demand, encouraging the establishment of new projects and the setting up of investment funds, Invest-Gate reports.

Several mixed-use projects will be developed in the upcoming period, including Egyptian real estate developer Hyde Park Properties’ new EGP 12.5-bn project in the North Coast. The project will be finalized in 2023, according to a report released by Oxford Business Group (OBG).

Another local developer, ARDIC, unveils a new phase of its EGP 1.2-bn project Zizinia El Mostakbal project located in New Cairo comprising 45 buildings and 1,800 units, which will all be finalized in 2020.

The report states that the concept of mixed-use projects is taking a leap forward as a result of the rising demand on real estate. Other mixed-use projects, including the national New Administrative Capital, is expected to accommodate five million people.

The increase in real estate activity comes in parallel to a decline in the country’s GDP growth to 3.8% last year from 4.2% in 2015 and the pound flotation.

Despite tight economic conditions, OBG suggests several factors that contributed to the increase in demand on real estate based on developers’ opinions.

“Some of the influencing factors on demand include the government’s encouragement of investments in a lot of land plots in order to help develop infrastructure,” says CEO of ARDIC Zizinia Ashraf Dowidar.

He adds that the country’s growing population is another significant factor and that investors consider real estate as a more secure saving platform than banks due to the unstable currency.

SODIC’s managing director Magued El Sherif also states that the last year was a good year for buyers and developers. “Buyers were anticipating the flotation of the [local] currency and hurried to purchase property,” he says.

Madaar for Real Estate Development’s CEO Gasser Bahgat points out that Egypt has become an attractive destination for foreign investments, especially foreigners from the Gulf region.