The Egyptian market for property is experiencing a period of rapid growth, with Egyptian nationals as well as foreigners viewing it as an ideal investment opportunity.
For the Egyptian investor, combining Egyptian real estate investments with Egyptian bank savings products and fixed deposit accounts in Egyptian pounds or US Dollars. Real estate has provided Egyptians (in particular first time investors) with a variety of attractive opportunities in the past years that enable them not only to receive high yields on their investment but also protect their capital through rental yields.
However, there are some things that you should know before committing your money into this highly profitable sector which promises great returns on your investment throughout the year 2021:
1- Egyptian real estate market’s average yield shows steady growth
The Egyptian real estate investment market has been growing rapidly in the last few years. The Egyptian real estate sector grew by almost 8% during the first quarter of 2013, although it was down by 4% as compared to 2012 figures, which is considered a positive indication that things are getting better. Real Estate investments in Egypt have an average yield rate of 13% per annum which is very good for those who start investing now.
2- Egyptian markets rise above inflation rates during 2015
Inflation rates have been substantially high in Egypt (the highest since 1986) over the past couple of years and they will probably remain this way throughout 2015. Many investors were hesitant about buying Egyptian real estate in Egyptian pounds, as Egyptian pound was constantly losing its value during 2012 and 2013.
However, real estate investments that are purchased with Egyptian pounds or Egyptian bond notes (which promise to be accepted by banks at a rate of 100 Egyptian Pounds per Egyptian Bond Note) will guarantee you capital stability even if the Egyptian government decides to keep the Egyptian pound stable and constant for long periods of time.
3- The Egyptian property market is becoming more attractive for foreigners
The Egyptian property market has experienced an increase in demand from foreign nationals over the past few years due to economic growth and inflation rates which have been favorable towards those who invest in this sector. Foreign investors find it much easier to buy land plots on thousands of acres located in Egyptian real estate projects. Egyptian land is considered a very strong and reliable investment for foreigners as they can easily rent it out or sell it to Egyptian real estate companies in case they decide to do so.
4- Egyptian real estate market will become more competitive with Egyptian banks offering 100% mortgages
Egyptian banks have started providing their customers with low interest rate fixed deposit accounts which are backed by the Egyptian government, which makes these accounts eligible for receiving two kinds of financial support; the first one guarantees that there won’t be any shortage of funds on this account, while the second one minimizes interest rates. This recent move will increase liquidity within Egypt’s banking sector and make it easier to obtain loans from local banks. Banks could also offer Egyptian real estates as collateral for these accounts or own Egyptian bonds in order to enjoy 0% interest rates on Egyptian bank savings products. The Egyptian Banking Federation is planning to offer Egyptian fixed deposit accounts which bear 100% mortgages, which will make it easier for Egyptian investors to obtain a loan from the Egyptian banking sector without having a lack of liquidity.
5- Egyptian Real Estate will go way beyond Egypt’s borders
In 2014, Egyptian real estate companies had a competitive advantage over foreign real estate companies since they can offer better returns than their foreign competitors due to lower costs. These low cost Egyptian properties attracted many people who wanted to live in countries like Cyprus or Greece where living costs are very high. Thus, Egyptian property owners can rent Egyptian flats or Egyptian houses to people who wish to stay in Cyprus or Greece for short periods of time.
In Conclusion:
Egyptian real estate has provided Egyptians with the opportunity to find a profitable investment that can also safeguard their capital. However, before investing in property in Egypt, it is important to know about things such as rental yields and where you need to be looking for your ideal property. We are here to help! Contact us today if you would like advice on how best to invest in an Egyptian property or need help finding one near schools or hospitals close by. Our team of experts will work hard with you from start-to-finish so that we can tailor your perfect home into reality together.
