Egypt: real estate market relatively unscathed by revolution
August 31, 2012
|Last Updated: Aug. 31, 2012|
|HELIOPOLIS - Apartments||COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|150 sq. m.||124,650||977||9.40%||831||6.51|
|250 sq. m.||285,250||1,698||7.14%||1,141||6.79|
|400 sq. m.||n.a.||3,516||n.a.||n.a.||8.79|
| Districts researched:
Garden City, Heliopolis, Zamalek, Dokki, Mohandesseen, Maadi, Katameya Heights, Al Qahira El Gedida, El Rahab City
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Rental rates are bottoming out in the residential real estate market of Cairo, according to Jones Lang LaSalle’s latest real estate report. The rental market seems to be reaching its lowest point and sooner or later, rental growth will start accelerating. In fact our figures already showed some growth, with a rise in rent demanded of around 10% from last year. The average rent per sq. m. ranges from USD 7 to USD 9 per month, whereas last year, it was around USD 6 to USD 8 per sq. m. per month.
The average buying price per square metre (sq. m.) of apartments in Cairo’s upscale neighborhoods remained more or less unchanged during the year to August 2012. Apartments in Maadi, Zamalek, among others, cost around USD 1,000 per sq. m.
A great majority of the apartments in our survey are located in Cairo’s old rich neighborhoods such as Maadi and Zamalek, though quite a few were located in the nouveau rich neighborhoods like Katameya Heights and El Rehab City.
Some of the neighborhoods to watch out for are in New Cairo. New Cairo is a part of the Beit Al Watan Project of the Ministry of Housing which provides 8,000 land plots (with sizes ranging from 300 to 800 sq m).
The apartments in our survey are listed on Egypt’s popular real estate websites like e-dar. In Egypt, it is a common practice among realtors to not archive old ads in their website. Ads listed as early as 2004 still appear on websites. Although we took extra proper care to include only apartments listed in 2012, we still have doubts about the veracity of the information on some of these ads.
Expats looking for apartments prefer direct methods rather than using realtors. One of the most popular methods is going to the American University in Cairo to look for apartment ads. Another one is going directly to the residential building of choice, and ask the bowab or the doorman for vacancies.