Cairo requires 500,000 new homes by 2020, according to a feasibility study conducted by Colliers International. The housing shortage specifically affects low income brackets, which has spurred key developers to launch projects targeting high-income residents, however a significant gap in the market for units at the mid-income level remains.
While wealthy Cairo residents are relocating to New Cairo from central areas of the city, there is a growing need for mid-market properties which are affordable for the majority of residents.
Despite the urgent need for a significant number of new residential units, the Greater Cairo Real Estate Market Overview report demonstrated increased consumer and investor confidence as economic stability returns to Egypt’s key market.
Commenting on the report, Ian Albert, Regional Director at Collier International said: “Over the last four years we have seen a palpable change in investor appetite towards the Cairo real estate market. The infrastructure and real estate megaprojects driven by the government and international investors have undoubtedly had a positive impact on the economy. These projects have the potential to significantly change the economic landscape of Egypt, and yield additional benefits if managed effectively.”
A snapshot of the market findings, demonstrated:
- In 2014, the total existing residential supply exceeded 5.2 million units
- Average sales prices for apartments and villas increased by 27% and 64% respectively (2013-2015)
- Average rental rates for apartments increased by 14% (2013-2015) and villa rentals dropped by 4% (2013-2105)
