Egypt Commercial Real Estate Market Size (2024 - 2029)

Egypt Commercial Real Estate Market Analysis

The Egypt Commercial Real Estate Market size is estimated at USD 9.41 billion in 2024, and is expected to reach USD 15.29 billion by 2029, growing at a CAGR of 10.19% during the forecast period (2024-2029).

• As the Egyptian economy experienced a slowdown because of the COVID-19 pandemic, several factors combined to create a stable outlook for its traditionally resilient real estate sector. The negative impacts on retail are obvious in the short term, but the longer-term impacts are less noticeable. It is conceivable that the retail sector will snap back after the pandemic, and the effect on future retail and entertainment-related development will be minor in the long run.
• The Egyptian government announced a series of widely welcomed economic measures to help protect the economy against the negative repercussions of the COVID-19 pandemic. The Central Bank of Egypt (CBE) launched an economic package worth more than USD 4 billion to fund a comprehensive COVID-19 pandemic strategy, USD 1.5 billion to fund real estate development for the middle-income group through banks, and EGP 20 billion from the Central Bank to fund the stock market.
• Informal retail formats are still common in Egypt, particularly in rural areas. The retail environment is, nevertheless, formalizing more and more. International retailers keep coming to and expanding throughout the nation, primarily through franchise arrangements with local businesses. The vast, young, and growing population of Egypt is propelling modernization, raising demand for foreign brands across various industries.
• The number of commercial developments in the Egyptian real estate market has significantly increased. This includes hotels, malls, and business buildings. These projects offer a lucrative investment option for those interested in rental income.
• The economy's expansion has led to increased demand for commercial space in Egypt. However, this is not the only aspect. Large government expenditures and an increase in enterprises are also significant factors. Given this, investing in commercial real estate in high-demand areas makes financial sense.
• Another drawback to take into account is the volatility of the Egyptian pound. The Egyptian pound has experiencedsignificantr swings in price recently. Predicting possible returns on investment is now difficult. The cost of living and conducting business in the nation may also risedue tof this uncertainty. These could lower a property's value. Investors should, therefore, consider the currency's current situation and any prospective concerns.

Egypt Commercial Real Estate Industry Segmentation

Commercial real estate is a property that has the potential to generate profit through capital gain or rental income. Commercial real estate (CRE) is only used for business-related activities or to offer a workspace instead of being utilized as a residence, which would fall under the residential real estate category. Most frequently, renters lease commercial real estate to conduct businesses that generate cash.

Egypt's commercial real estate market is segmented by type (offices, retail, industrial and logistics, hospitality, and multi-family) and key cities (Cairo, Alexandria, Giza, Port Said, and the Rest of Egypt). The report offers market sizes and forecasts in value (USD) for all the above segments.