Epicenter of Growth: Egypt Emerges as a Real Estate Investment Hub
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Real estate represents tangible property encompassing land and any enhancements, whether natural or artificial, affixed to it. It can serve various purposes, including residential, commercial, agricultural, and industrial. Ownership of real estate can belong to a government, a corporate entity, or a private party. The value of real estate is often influenced by factors such as location, demand, economic conditions, and market trends. Real estate markets can vary significantly from one region to another, with factors like population growth, urbanization, and infrastructure development playing crucial roles in shaping these markets.
According to a Knight Frank report, Egypt has emerged as a new hotspot for investors, particularly for those from the Gulf Cooperation Council (GCC) countries. GCC nationals, allocating an average budget of US$ 1.1 Million for residential property purchases in Egypt, show variations based on their geographical location and asset levels. Moreover, GCC investors have injected heavily into Egypt between 2021 and 2023. The UAE leads in investing in Egypt's real estate industry, accounting for approximately 65%, followed by Saudi Arabia. Furthermore, the UAE spearheaded GCC investment into Egypt with a total of US$ 5.7 Billion (approximately 29% of Egypt’s total FDI), followed by Saudi Arabia with a 2022 investment of US$ 2.1 Billion. Looking ahead, the UAE plans a substantial investment of US$ 35 Billion in Egypt by 2025, driven by ongoing economic development and cross-border collaborations.
Market Insights: Factors Influencing Real Estate Values in Today's Global Economy
According to a study by IMARC Group, the global real estate market is expected to reach US$ 7,954 Billion by 2028. The demand for real estate has increased substantially over time. Various factors contributing to the market's growth are outlined below:
Government Initiatives: Various government-favorable policies and legislation, including tax incentives, deductions, and subsidies, are boosting the real estate market. GCC countries' governments are introducing legislation and initiatives, such as easing restrictions on foreign ownership, offering long-term visas, and investing in infrastructure and mega projects to expand the real estate market.
Low Interest Rates: Lower interest rates make borrowing cheaper, encouraging individuals and businesses to invest in real estate. Central banks have adopted monetary policies and are keeping interest rates low to increase economic growth. Borrowing has become more affordable for individual homebuyers and real estate developers. Cheaper financing and lower mortgage rates expand construction activity worldwide and boost commercial and residential property portfolios.
Urbanization: Urbanization is a major factor responsible for the expansion of the real estate industry. Most people are migrating to urban cities for better job opportunities, education, and improved living standards. This factor increases the demand for housing, retail spaces, and infrastructure development, propelling the real estate market in urban areas. A growing population creates demand for housing and infrastructure, driving real estate development. Urbanization trends can lead to increased demand for both residential and commercial properties.
Demographic Trends: The shift in the demographics of the nation is impacting real estate trends. Changes in demographics, such as an aging population or a rise in the number of young professionals, can influence the type and location of real estate demand.
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Numerous leading players in the real estate market, such as American Tower Corporation, Aston Pearl Real Estate Broker, Ayala Land Inc. (Ayala Corporation), CBRE Group Inc., and Colliers International, are heavily investing in expanding the real estate sector worldwide. Apart from these, key economic factors such as GDP growth, employment rates, and consumer confidence play a crucial role in the real estate market. A strong economy generally leads to increased investment in real estate.
Revolutionizing Real Estate: Headlines Redefining the Landscape of Innovation
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Navigating Tomorrow's Horizon: The Future Trends Shaping the Global Real Estate Market
The real estate market is undergoing a transformation propelled by technological advancements such as smart home features, virtual reality tours, and online property platforms. The widespread adoption of these technologies is expected to be a driving force in the forecast period.
Additionally, changes in cultural preferences and lifestyle choices are influencing the types of properties in demand. The pandemic has significantly impacted both lifestyle and the economy. Remote work has become a prominent feature of this period, leading to an increased demand for larger houses in suburban areas to accommodate remote work arrangements.
Moreover, the surge in e-commerce has increased the need for industrial and logistics properties to support the rapid growth of online retail, thereby enhancing the vitality of the commercial real estate sector. As the real estate industry continues to evolve, these factors are expected to play a significant role in shaping the market's growth in the coming years.
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Unlock Insights: Elevate your understanding with IMARC's unparalleled expertise
At IMARC Services Private Limited , we specialize in assisting companies through market research to identify the latest trends, business strategies, and opportunities. We assist organizations in the real estate market in finding their target audience, their preferences, and purchasing behavior, and creating powerful marketing plans. We can assist by providing information on new launches, innovations, and recent trends and developments. We help businesses position themselves for long-term success and growth.
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