The real estate sector in Egypt has continued to thrive during the COVID-19 pandemic. The government responded quickly by reducing interest rates, encouraging continued investment. As a result of the pandemic, online real estate platforms are growing as people spend more time online and look for work-from-home spaces. Developers will need to adapt to changing consumer needs and behaviors, such as less demand for office space but more for logistics as online purchases increase. Egypt is well positioned for continued growth if developers can provide innovative projects that meet the evolving needs of the post-pandemic marketplace.

1. Egypt’s Real Estate Sector
Thriving Amid the Pandemic:
What You Need to Know
Dr. Ehsan Bayat

2. Egypt’s Real Estate Sector Thriving Amid the
Pandemic: What You Need to Know
 The coronavirus pandemic has impacted the real estate industry around the world, and countries in
the Middle East and North Africa (MENA) are no exception. One country that has experienced a major
expansion in its real estate market is Egypt. Over the course of the last decade, Egypt has steadily
invested in the real estate industry and achieved significant growth. Overall, Egypt has largely
outperformed many other countries in the region in terms of real estate solvency during the pandemic.

3. Fostering Continued Growth
 In Egypt, many people consider the real estate market as a sort of safe haven during times of uncertainty, and
individuals continue to invest in property as a hedge against inflation. Egyptians for the most part view real
estate as a commodity rather than as a yield-producing investment. Because of this, analysts predict that
virtually all sectors of Egypt’s real estate market will continue to perform strongly, even in the short-term. While
the rise in housing prices was beginning to slow prior to COVID-19, many people expect that prices will continue
to grow throughout 2020 and 2021 in order to keep pace with inflation, as people use these investments to
hedge against economic uncertainty. Beyond 2021, it will become trickier to predict what will happen to the real
estate market in Egypt since the New Administrative Capital will likely be operational by then. Some
professionals think that Central Cairo will receive a boost in investment once the ministries and embassies move
to the new city.
 Part of the continued growth of the real estate sector in Egypt is due to the government’s quick response to
the pandemic. Countries across MENA have responded to the pandemic in a number of different ways, but most
governments have introduced some sort of program to encourage continued investment. In Egypt, the
government reduced interest rates by 3 percent, which has helped to maintain strong interest in real estate
investment, as investors and citizens take advantage of low rates. The Egyptian government is also actively
working to reopen other sectors of the economy, which is instilling greater confidence.

4. Emerging Trends in the Real Estate Industry
 As a result of the pandemic, Egyptian citizens’ behaviors have changed a great deal. People are spending
more time online than ever before, and many Egyptians are turning to the Internet as a refuge when lockdowns
and curfews limit their ability to leave home. As a result, online purchases have skyrocketed in the country. One
startup in Egypt that is developing an online real estate platform recently received backing from Y Combinator,
which forecasts a future in which many more transactions will be completed online. In the months to come, the
ability to explore and vet properties online is expected to expand considerably. This development may become
particularly important as more people look to purchase second homes in vacation areas. Sales spikes have
recently been noted in Hurghada, Sharm El Sheikh, and the North Coast. Consumers are also now looking for at-
home workspaces, as work-from-home policies seem likely to continue.
 The pressures arising from the pandemic will likely shape many other Egyptian real estate projects. For
example, with more people working from home, less space will likely be needed for administrative projects.
Expectations for business properties will also likely shift in the years to come. Even developers focusing on
commercial projects are feeling the pressure to rethink how they use space as more people opt for online
purchases. Also, more people are choosing extended stays at hospitality properties, which in turn could evolve to
feel more like homes.

5. Adapting to the Evolving Needs of the
Marketplace
 Clearly, the pressures of the pandemic are still working themselves out in Egypt and other countries
around the world. Developers need to remain flexible in the months and years to come in order to survive
the changing marketplace. These developers will need to listen to customers’ feedback about their
experiences in order to create the type of projects that people want. By paying attention to trends,
developers may be able to stay ahead of the curve. For example, a rise in online purchases may necessitate
increased construction in the logistics sector, which could offset some of the reduced demand for office
space. In the retail space, developers need to continue to make experiences fresh in order to attract
customers. At the same time, the space will need to facilitate healthy and safe interactions so that people
will feel comfortable.
 Overall, Egypt is poised for continued growth. Developers must recognize that growth will depend on
providing new and different projects designed to meet evolving needs. Continuing with projects that were
planned prior to the pandemic may result in a flooded market. Egypt is in a unique position—amid the
development of entirely new cities—to pivot and create innovative buildings that reflect a new way of life.