The Impact of Tourism on the Real Estate Sector in Egypt
Egypt has a rich history, culture, and natural beauty that attracts millions of tourists annually. Tourism is one of the primary sources of income and employment for the Egyptian economy, contributing about 11.9% of the GDP and 9.5% of the total employment in 2019. However, tourism benefits the hospitality and service sectors and the real estate sector, which has been experiencing steady growth in recent years.
According to a report by JLL, a global real estate consultancy firm, the tourism boom in Egypt has fueled the demand for residential and commercial properties, especially in the new cities and tourist destinations. The report states that Cairo, the capital city, delivered 7,000 residential units in Q3 2023, bringing the total stock to 262,000 units. The report also projects that another 9,000 units will be delivered by the end of the year.
Property for sale in Egypt
The new administrative capital, built east of Cairo, is another major real estate project expected to benefit from the tourism influx. The new city, which aims to become a smart, green, and modern metropolis, will host the government headquarters, diplomatic missions, business centers, cultural venues, and residential areas. The new city will also feature several tourist attractions, such as the largest opera house in the Middle East, the largest cathedral in Africa, and the largest mosque in the world.
The coastal cities of Egypt, such as Alexandria, Hurghada, Sharm El Sheikh, and Marsa Alam, are also witnessing a surge in real estate development as more tourists and investors are looking for second homes or vacation rentals in these areas. The coastal cities offer a variety of properties, ranging from affordable apartments to luxurious villas and resorts, with stunning views of the Mediterranean or the Red Sea. The coastal cities also offer diverse activities and attractions, such as diving, snorkeling, surfing, golfing, safari, and historical sites.
Real estate for sale in Egypt
Egypt’s real estate sector is attractive to domestic buyers and foreign investors, who can benefit from the favorable laws and incentives that the government offers. For instance, foreign investors can own up to two properties in Egypt for residential purposes. They can obtain a five-year renewable residency permit if they invest at least $100,000 in real estate. Moreover, foreign investors can enjoy tax exemptions, currency repatriation, and dispute resolution mechanisms, among other advantages.
In conclusion, tourism is a crucial driver for the real estate sector in Egypt, as it creates a high demand for residential and commercial properties, especially in the new and coastal cities. The real estate sector in Egypt offers a wide range of opportunities and benefits for both domestic and foreign buyers, who can find their dream home or profitable investment in this dynamic and diverse market.