Before the Arab Spring and the subsequent years which followed, Egypt was widely considered one of the more stable and prosperous countries in the region. The years of political unrest which followed, as economic and property-based opportunities failed to filter down to the average Egyptian, led to markets turning a wary eye toward the age-old area.
Happily, the last few quarters have shown trends which suggest that, while the country’s socio-economic woes are far from over, real estate in Egypt may well be on the rebound.
Hits the Spot
The biggest advantage Egypt has is, of course, it’s fantastic location, which has given it an upper hand for nearly all of Egyptian history—that’s thousands of years to consider, making it all the more impressive that Egypt has so long been sustained by its advantageous location. On the cusp of the Mediterranean, Egypt is in possession of one of the world’s most important water thruways in Suez, the Nile and other rivers adding to its agricultural and commercial production. This location, along with its socio-political and military importance in terms of the balance of power in the area, and its modern metropolises such as Cairo serving as invaluable nodes in the regional and world economy, all combine to make Egyptian property some of the most highly sought after in the area. This higher demand for Egyptian property is one factor impacting Egypt’s real estate rebound, and something to consider when looking to buy or rent in the area. Even in the face of political uncertainty—the worst of which is hopefully behind the nation—the fact remains that, owing to their location, Egyptian property is some of the most desired in the region. As long as that’s the case, their real estate value will remain a strong investment. Add to that the great historical and cultural value of parts of the country—to say nothing of the tourism which it generates—and it isn’t hard to see why investing in Egyptian real estate, even after the political instability in the years following the 2011 Arab Spring, can be a good bet.
Buying vs Renting in Cairo and Giza
Cairo and Giza are, without a doubt, two of the most prominent and important cities in Egypt, politically and economically. The question of whether it’s better to buy or rent in each really comes down to how much you want to spend and how attached you want to be to the economy of the area. Renting in either place, while understandably more expensive than other parts of Egypt, is still a great option for those looking to visit short-term or live in Egypt without engaging in its real estate market on a deeper level. That said, even with quarterly challenges in 2015 which have continued to an extent into this year, Egyptian real estate presents an opportunity for significant reward should improvement and recovery from the revolution continue over the next few years.
Add to that the fact that elements such as the furniture and home furnishing industries are helping fuel a surge in home decorating and enabling people to put value back into their homes, and buying Egyptian property becomes a mediated risk with the potential for greater rewards down the line.