Where there is High Supply there will be High Demand... Return On Equity For Real Estate Investors In Egypt (RORI)

For the first time in history, the demand for luxurious yet affordable properties would be high in the new property markets in Egypt. There are many kinds of options that you can pursue a profitable investment in both residential and commercial properties.

You can find many properties that would include one and two bedrooms apartments to 3-4 bedrooms, mansions, villas, townhouses and even the property markets located in the suburbs in Cairo would offer a wide range of investment options. This can actually make it a difficult decision to choose the right property that can promise a higher RORI and capital growth in return. You should always consider that the location of the property is very important as it is one of the major factors for the growth of capital within the property. You will not be able to afford choosing the right property in the wrong location which in return will inherent weaknesses.

As an investor looking towards the real estate industry, you might not have the best knowledge of knowing where to put your investment and knowing the best investment destinations for a promising real estate return that would be profitable. It would be best that you would seek the assistance of property investment consultants. They are better informed about how different locations have performed regarding the terms of capital growth and RORI. A poorly chosen location in a prime property market may not give you the same high rate of RORI or growth within the capital which makes other properties in a popular location in a sub-prime property market can actually offer a better investment. There must be the right research made about the various properties and real estate markets and realizing the pros and cons of the current situation within all the locations and properties provided.

Does the Property Market in Egypt offer Higher RORI?

For the non-accountant, this many sound a little confusing but there is a formula that will make the situation better as it is stated as follows:

RORI = Gain from Investment – Cost of Investment ÷ Cost of investment

Regarding real estate investment, people will often speak about the return on equity for real estate investors (RORI). RORI is the percentage of the money that is recouped on the total investment. This is better understood when you subtract the return on investment from total investment and then divided by total investment in the process.

This will show how quickly you will be going to recover the entire amount that was invested in the first place. A higher RORI indicates that you are going to recover your investment in a shorter period of time while a low RORI means the capital growth on the potential investment will be slow in return.

These new developments are creating new employment opportunities. There are more and more professionals that are moving into these new areas where there will be more employment opportunities and modern lifestyle options that would be available in many forms. With all the developments and sustained demand that has been created for both residential and commercial properties.

Sahar Samy