Egypt's real estate market copes with “roller coaster ride” in 2019: JLL
“We are expecting domestic demand to strengthen in the forthcoming period,” says JLL’s country head at its Egypt office
Egypt’s real estate market has experienced a “roller coaster ride” in 2019, with a wide range of “booms and busts” during the year, according to real estate and investment management consultancy JLL’s 2019 Year End Real Estate Market report.
The Egyptian government is implementing strategic plans to stimulate growth and drive investment opportunities, after most sectors of Cairo’s real estate market softened in Q4 2019, following a positive start to the year.
Commenting on the year gone by, JLL’s country head at its Egypt office, Ayman Sami, said: “2019 was intriguing on so many levels for Egypt. The good news is that after the shock of fuel subsidy reforms wore off, and with price pressures alleviated in recent months, we are expecting domestic demand to strengthen in the forthcoming period.”
The JLL report also highlighted how the Central Bank of Egypt’s (CBE) move to cut key interest rates last year proved positive, as a slow recovery in consumption levels and lower debt interest payments were brought about in response to mitigating imbalances over the year.
In addition, the report shows how the Egyptian government plans to ease doing business; lure more foreign direct investments; reinforce the role of the private sector through partnerships (PPPs); and enhance the country’s investment climate.
Sami added: “The real estate sector is a main driver of Egyptian economic growth. These key initiatives will achieve positive results and will help boost demand in the medium and long-term.”
Egypt’s parliament has also approved the biggest state budget in the country’s history during FY 2019/20, with spending set at $102.36bn (EGP1.6tn), up $9.6bn (EGP150bn) compared to the previous year.
The JLL report also discusses the concept of ‘smart cities’, and a batch of fourth-generation cities, many of which will be in Egypt’s New Administrative Capital (NAC).
Local authorities have vowed to continue working towards improving market transparency and refining the investment climate through the introduction of new technologies and innovative solutions, including e-filing systems, unified smart cards, online property registrations, among others.