Characteristics of the real estate market in Egypt

The real estate market has many advantages that attract capital, especially for its great ability to confront various economic crises such as the problem of inflation and the rise in the price of the dollar.

• Real estate is a store of value and assets

• Real estate represents a safe haven and the pillar of the economy for any country besides gold.

• Many clients are looking to freeze their capital in real estate

• It is one of the largest markets facing economic shocks.

• Safe investments that are very difficult to achieve losses.

Real estate benefits from inflation

Contrary to the fact that inflation causes economic damage at all levels, starting from the currency and even the majority of commodities in the market, real estate as a product or fixed asset not only has the ability to face inflation, but also increases its value in parallel with the rate of inflation.

Local currencies lose part of their value equal to the rate of inflation, so real estate is considered a safe vessel for the value of money as it works to develop it according to the rate of inflation that the economy suffers from, and thus the investor does not lose the value of his capital.

One of the economically recognized things when waves of recession occur is the actual impact of the prices of products and commodities on the decline in order to attract customers to buy, limit losses, and try to balance both supply and demand, but on the contrary, we notice a rise in real estate market prices in Egypt and the world in times of recession, but by a small percentage.

The reason behind the resilience of the real estate market in the face of all challenges is that it is a fixed and frozen asset that does not witness a loss. Rather, it is one of the solutions that many clients and citizens adopt as a refuge from the severe economic downturns.

Real estate is a source of passive income

One of the most important advantages of real estate investment is that it is a source of passive income, which is the monthly income or fixed return that you get without spending much in order to collect it, and it is the result of previous accumulated efforts, so renting real estate is one of the most common methods in the field of real estate investment.

Real estate investment is a field of low risk

Despite the real estate investment strategies that recommend the presence of personal qualities in the investor, such as love of risk and risk-taking, it is a natural risk that does not constitute much compared to other investment fields.

All global expectations point to a possible increase in the real estate market, taking into account the existence of various crises in the economy and food, so some statistics for the real estate market expectations for the year 2023 come as follows:

• Potential increase in the Middle East and globally, by an average rate of 18% to 25%. 

• The future of the real estate market in Egypt 2023 may witness an increase in real estate from 25% to 35%.

• Rental properties are set to increase from 8% to 13% on average.

What are the reasons for the increase in real estate prices in 2023?

1. Markets are likely to be hit by stagflation, its mean high prices and no selling.

2. The world may witness a constant fluctuation in the price of the dollar, and thus the change in real estate prices in Egypt after the rise of the dollar.

3. The instability of the energy markets, along with the lack of stability in the global stock market.

4. The effects of the Russian-Ukrainian war, as well as the food crisis, in 2023.