What are the market developments that we should be keeping our eye on ? Looking at the next five years , the biggest market is going to be the New Administrative Capital . It is going to offer a lot of new investment opportunities with potentially a very high return . While that would be the first pick , New Cairo will also continue to do well during the coming three years , until the New Administrative Capital starts to capture the interest of most investors . 6 th October and Sheikh Zayed still play a good role , along with New Alamein City , which will see more investment over the next couple of years once the infrastructure is in place and we see it coming to life . It is going to attract a lot of people .
Which factors are influencing the real estate market in Egypt in 2021 ? There are so many factors in play in a country like Egypt . To me , the real estate market can be seen as a reflection of the economy . When the economy is doing well , we have a more stable security situation , a more stable dollar , and factories and tourism are more productive . This immediately projects onto real estate as more people have purchasing power . Real estate is viewed as a safe option , whether to improve their lifestyle , or as an investment . Another key factor is the interest rate in the banks . A higher interest rate has a negative impact on the real estate industry . When the Central Bank drops interest rates , more money comes out of the banks and feeds into the real estate market . We must also consider the issue of title deeds . The easier the government makes it for people to obtain title deeds for properties , the more people feel encouraged to buy in these areas . Many markets in Egypt are not sufficiently regulated and the legal status of the properties is loose , allowing for complications in registration . Until now , you cannot register a house or apartment you have bought in newer urban developments around the Greater Cairo area . However , in the older parts of the city like Heliopolis and Mohandessin it is possible to go and register your property . But still , the cycle of registration can take six months , or even up to a year . This situation requires a lot of development from the government . When this improves , the banks will be encouraged to make mortgage loans for this type of purchase . Buyers are increasingly selective about the name of the development company . If a developer is well recognized , strong in the market and with a good reputation you can be reasonably sure that the company builds good products and does not have financial issues and is likely to deliver the project on , or very close to , the due date .
What trends have you seen in terms of demand for different types of property ? Are people upgrading or downsizing at present , or moving to less congested areas ? I think the trend is more towards downsizing rather than upsizing . Not so much downsizing , more of a demand for small units . The price of real estate has surged compared to people ’ s actual buying power . Since devaluation , people ’ s incomes may have risen slightly , but not to the extent that they can digest the inflation we have seen in the country overall . People are no longer able to afford the type of property they could purchase five or ten years ago . Most people have been going out and buying smaller units , whether for personal use where they feel able to keep up installment payments , or as a rental investment , just to keep the momentum of their savings .
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