Egypt’s commercial real estate stock maintains its position as a cost-effective investment: Fitch

Egypt’s commercial real estate stock maintains its position as a cost-effective investment: Fitch

In its report on Egypt’s real estate for the second quarter (2Q) of 2022, Fitch Solutions said that the country’s commercial real estate stock maintains its position as a cost-effective investment, which is positive for foreign direct investment.

It added that government efforts to increase foreign investment and boost private sector activity in the economy should prove positive for the commercial real estate market.

Fitch also said that the strength and overall situation of Egypt’s commercial real estate sector is encouraging investment in the market due to the ongoing development and construction of 20 new cities, in addition to the development of the 23 existing new cities.

The new cities — like the New Administrative Capital (NAC), New Alamein, and New Mansoura to name a few — provide potential investors with attractive, large-scale real estate project opportunities. Demand is predominantly for income-producing office and retail assets, though there is increasing interest in industrial facilities on the back of positive market conditions.

Foreign direct investment has been a major driver of market investment. Fitch expects this to continue as domestic institutions adopt strategies to mitigate economic risks on the global and domestic fronts.

“We believe that the authorities’ business-friendly reforms to improve the business environment and