Egypt’s real estate shows strong fundamentals amid economic turmoil, but risk remains

Al-Monitor Pro Members

Marc Español 

Journalist covering Egypt and Sudan

Aug. 9, 2023

The Egyptian government announced in mid-July that it had begun the procedures to allow foreigners to own as many properties in the country as they want, revoking the existing cap of two. The reform will go through parliament in the fall and is expected to be approved in the coming months. The move comes as the Cabinet tries to attract hard currency at a time when Egypt is experiencing a severe dollar shortage. But it also responds to a demand from the country’s powerful real estate sector, which had called for greater flexibility on sales to foreigners as part of a raft of measures intended to address the constraints it has been facing since the local currency began to devalue in March 2022 in the wake of the economic crisis triggered by the outbreak of the Ukraine war. So far, the sector has fared well through the market instability, yet sustained economic headwinds represent a thorny challenge that is putting its fundamentals, sustainability and resilience to the test.