The Egyptian retail sector is one of the promising sectors due to the huge and swiftly growing population, as well as high wages, which lead to an increase in household spending in all subsectors of retail trade. Moreover, this will provide long-term consumption opportunities in the Egyptian market, triggered by young people's purchases of non-essential and creative materials.
The Egyptian real estate market has faced numerous economic challenges in 2022 that have negatively impacted sales. High inflation, currency depreciation, and interest rate hikes have reduced the purchasing power of both local and foreign buyers.
The outbreak of the Russian-Ukrainian war in February 2022 and the resulting disruption of supply chains put more pressure on input prices worldwide, pushing inflation rates to record levels. Egypt also had to face the consequences of this war.
Amid the present challenges facing the real estate sector in Egypt, everyone is betting on mortgage finance as an ideal solution to mitigate and face these challenges, which include the depreciation of the EGP against the USD, the increase in the prices of building materials, and the rising interest rate. Such challenges prompted developers to restructure their plans, and consider all available financing options to enhance their financial to be able to complete their projects.
Invest-Gate discusses with a number of experts in the real estate industry the most prominent obstacles facing the sector with regard to taxes. Experts are also inquired about any endeavors or proposals to overcome such obstacles or adopt tax incentives in coordination with government agencies.
The fast-paced economic developments and crises all over the world resulted in surging prices of many commodities, including building materials, which – in turn – pushed higher the cost of real estate projects and, therefore, caused inflation in property prices. Thus, mortgage finance has become the best and only option to maintain activities in the real estate market.
In September 2022, the Central Bank of Egypt (CBE) raised the maximum limit for companies to borrow from government banks by 100% to EGP 500 mn without referring to it.
Continuing Invest-Gate’s series of roundtables over 2022, Invest-Gate is to hold a roundtable on October 12th, 2022 at 09:00 am in the Nile Ritz Carlton. Hosting prominent experts in the Egyptian real estate sector, the roundtable carries the title “4th Generation Cities: Opportunities & Challenges.”
Invest-Gate puts Egypt’s latest achievements under the spotlight, thereby scrutinizing a bunch of macroeconomic indicators and evaluating the country's current standing in early 2020, in terms of financial structure and economic growth, in the wake of these fine-tuned revisions.
Invest-Gate provides an in-depth analysis of the distinct economic trends you must thoroughly scrutinize to know if any housing market is improving or not, particularly in Egypt.
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