Cairo to face 2 mln homes supply shortage by 2015

Property opportunities in Egypt are being driven by factors such as the country’s rapid demographic growth, office space shortage and an expanding middle-class sector, which are expected to be highlighted at the Next Move real estate investment and finance exhibition in Cairo from April 28 to May 1.
The real estate sector in the region’s most populous country and largest property market is estimated to have grown by 3.7% in 2009, in spite of the global financial crisis, with the residential market offering particularly strong potential for the next decade due to the current shortage of 3 mln units with additional demand for 150,000 units per year. The saturation of the high-end market is expected to open up demand from the low- to middle-income segment, which represents around 45% of the population. The Cairo market in particular is highly attractive, with a demand shortage of around 2 mln residences foreseen by 2015.
“Egypt’s property markets have been performing exceptionally well over the past two years due to steady population and business growth,” said Ahmed Ghozzi, Chairman, ACG-ITF, one of the co-organisers of the event.
Egypt’s real estate industry is expected to repeat its strong performance within the next 12 months amidst expectations of continued real GDP growth, sustained investment interest among domestic businesses and rapidly recovering national tourism. Next Move 2010 will build on this optimism and feature key prospects within its expanded 25,000 sq.m. of exhibition space. The inaugural edition of the event in 2008 featured the introduction of projects with total value exceeding USD 25 bln and affirmed the strong potential of the country’s property market.
“With incentives such as exemption from capital gains taxes, lower prices and close proximity to major European travel destinations already in place, we can look forward to increased investment and financing activity,” added Yasser Ghazi, Chairman, Lead Marketing Solutions.