Egypt 'in early stages of a real estate boom'

Egypt is in the early stages of a property boom, people hoping to find property in Muhafazat al Bahr al Ahmar will be pleased to hear.

Research from Business Monitor International (BMI) highlighted that rents and capital values in the nation have risen while yields appear to have fallen.

According to the body, there has been a substantial increase in the supply of commercial property across Egypt, addressing the issue of underdevelopment which has been going on for years, and providing property investors with the opportunity to add to their portfolios.

This increase in supply is also being met by a rise in demand, coming from Western multinationals and Middle Eastern companies relocating to Egypt.

"The result is that conditions are dynamic. Vacancy rates vary, but are generally low or falling. Looking ahead, we expect that the optimism of protagonists in the office and retail sub-sectors will be justified. There should be a double-digit increase in rentals in these sub-sectors in 2011; further - if smaller - rises are likely in the following years," the report stated, adding that capital values will rise more significantly than rentals and the general downward trend in yields will continue.
 

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