Real Estate Investment in Egypt: Egypt has seen many ups and downs in recent years, but the country is now on track. Investors are now seeing the Egyptian market as a fruitful and future-oriented market and are encouraging more and more investors to come here and invest.
Egypt’s oil, gas and petrochemical industries are widely considered to have the highest potential in AgPeat at the moment, but there are some additional areas where investment is seriously worth considering:
Investment in Egypt is a very good idea and it is expanding new investment locations of the future. From its location to its resources and expectations of future development, Egypt has a ton of investment potential.
Real Estate Investment in Egypt
Investment sector
There are many investment opportunities in Egypt. Some of the best areas for research are:
- Acquisition of property
- Oil and Gas Production and Exploration
- New Petrochemical Projects
- New World-Class Third Generation Refinery Projects
- New Joint Mega LNG Projects
- Industries manufacturing oil and gas supplies, equipment, and services
Reasons to invest in Egypt now
Egypt has been successful in appealing to foreign investors and forming large-scale partnerships with several international oil and gas companies. The Egyptian government’s support has been a driving force behind these successful partnerships and has helped the country emerge as a preferred destination for investment.
Many reasons make investing in Egypt a wise decision. Apart from tariff reductions, asset revival, growth in the financial sector, free trade agreements, low land prices, easy dispute settlement methods, and new business opportunities, some steps have been taken to take Egypt much further.
The sector where you can invest
Egypt is making progress in every field, but some of the true superstar sectors are the production sector, tourism sector, petroleum sector, agricultural sector, industrial sector, and real estate sector.
Egypt as an outsourcing location
Egypt is rapidly establishing its position as a leading outsourcing location in the global market. The country is now involved in providing services to several companies headquartered in locations such as the United States, Canada, Britain, mainland Europe, Sub-Saharan Africa, APAC, and the Middle East. Superior command and fluency in English spoken and written by Egyptians are important reasons companies are choosing to outsource here. Many Egyptians also have a good command of French, German and Spanish.
Real estate investment Risks
About 50% of respondents included geopolitical and climate change issues such as rising sea levels among their primary concerns when it cited real estate investment and about 40% currency fluctuations and interest rate risk. is.
Political risk
- The main political risks were mentioned, which included majorly US tariffs and trade wars with China.
- Brexit; The impact of Hong Kong’s opposition on protectionist policies and trade in Asia is also prominent when it comes to cross-border real estate investment.
- Also, respondents mentioned that they are concerned about the main events in the Middle East and the war with civil unrest in Iran and Latin America
Currency risk
- Respondents also decided on currency risk as one of the greatest challenges of real estate investment.
- These risks include currency fluctuations, foreign exchange market fluctuations, high hedging costs, interest rate risk, and volatility as well as negative interest rates due to currency imbalances.
Tax and regulatory environment
- Participants of the International Investor Survey also expressed concern about the tax and regulatory environment for real estate investment.
- The main risks of this category include municipal requirements for development, lack of knowledge, and lack of transparency in local governance and real estate markets.
- In addition to this concern, attention has been paid to multi-dimensional assets, political risks at state and local levels, additional regulation, and other restrictive policies that are making development and handling increasingly expensive and difficult.
Pricing issues
Some of the main pricing issues that can affect real estate investment and which concern investors are:
- The late-cycle high pricing
- Compressed cap rate due to low-interest rates
- High competition for assets on equity and debt sides
Real Estate Investment Opportunities
In addition to the risks, the survey also identified the biggest opportunities for real estate investment.
As already mentioned in previous surveys, the growth and strength of the US market represent a continued opportunity for lower interest rates and attractive yields for real estate investors.
Diversification
Diversification is one of the most outstanding real estate investment opportunities that emerged from the survey.
Additionally, other opportunities mentioned include risk in unusual areas and opportunities in domestic markets, and diversification in established and/or emerging markets.
US Growth and Stability
The sample size and greater liquidity of the US market mean there are still real estate investment opportunities. Additional opportunities include higher growth than European countries; and positive debt financing in the US.
Europe has become very expensive in the face of bad economics. The US also has a stronger relative value than the government and high yield debt, and the spread of government bonds is another opportunity.
Additional opportunities related to US growth and stability include positive gains on domestic investment compared to other countries and additional returns on a positive basis, such as tightening growth and vacancy figures.
US-Specific Strategies
US-specific strategies are possibilities that real estate investors should think about making a good investment. When US-specific strategies are talked about, it has to do with all the regulatory risks regulated for the continued growth, the concentration of jobs, and population growth in innovation centers across the country.
Furthermore, as hedging costs are decreasing for European and Asian investors, there are preferred opportunities in the US. The second market is also developing strongly due to the lack of new housing supply an increasing number of homes. Therefore, the US has more opportunities for foreign investors beyond traditional markets.
Additionally, strengths in many residential markets, such as senior care and student housing, are also an opportunity for real estate investors.
Non-US-specific strategies
Non-US-specific strategies include global urbanization and demographic change, as well as divergent interest rate environmental economies to reduce foreign investment and make foreign investment more attractive.
