Egypt Real Estate Report Q4 2011

Page 1

ReportLinker

Find Industry reports, Company profiles and Market Statistics

>> Get this Report Now by email!

Egypt Real Estate Report Q4 2011 Published on August 2011

Report Summary The real estate sector in Egypt is ignoring the unrest and political wrangling under way ' except where the sector itself is under scrutiny ' and the boom in demand continues. In June 2011, our in-country sources reported that rents were not affected by the troubles and grew, for the most part, in each city and in each sub-sector of the market. Further rent increases are less likely in the second half of 2011 and into 2012, although we may see some ' if at a more measured rate ' for industrial space. A rise in rents relative to capital values means that yields for retail space have risen since the end of 2010. However, taking the longer-term view, we expect yields will remain stable, or fall slightly, as perceptions of the Egyptian business environment improve. Egypt's Ministry of Housing has promised 1mn new affordable homes by 2015 in 22 cities across the country, designed to help meet the needs of a flourishing, expanding, young population. New cities have been created to accommodate the growth. As the need for residential property grows, so too does the need for business and retail space. There have been a few areas of the market where there was plenty of supply but it is likely the temporary slow-down in development put paid to any over-supply risks. Rather, chronic under-supply remains. Key opportunities in the real estate market: * Delayed projects open up even more opportunity for developers to meet the needs of a growing population in a healthy economy. * Viable support from the World Bank in the form of funding to one developer, a US$50mn equity investment in Orascom Construction Industries (OCI), indicates the attractiveness of the country to other foreign investors. The investment itself should create around 2,500 jobs across the region, which in turn will help generate internal growth and spur investment. * We are seeing projects under way and tourism picking up again. Egyptian Resorts Company (ERC), which develops mega communities in the country, reported 40-50% capacity by July 2011, up from just 1-5% following the January revolution. Key risks to the real estate market: * The legal contestation of land contracts runs the risk of delaying projects, criminal charges against the owners of construction firms and the continued tarnishing of the industry's reputation. Egyptian courts have finally removed a presidential decree that allowed state bodies to sell land and pocket the proceeds, according to Trade Arabia in June 2011. * For developers, their land is under threat of being seized back by the new government. The Egyptian Housing Ministry is reported in Reuters to be withdrawing an unused 210-feddan (217.9-acre) plot of land from Palm Hills Development. Al-Mal reported that Palm Hills was awarded the land after a closed bid in May 2007 at EGP812 per metre (m). * Egypt's commercial real estate sector is now returning to stability after the turmoil at the beginning of 2011 and, although occupancy rates are rising, the speed with which they recover or are affected by future issues may cause companies to struggle to sell hotel rooms and properties.

Table of Content Executive Summary 5 SWOT Analysis 7 Egypt Real Estate/Construction SWOT . 7 Egypt Economic SWOT . 8 Egypt Business Environment SWOT ..... 8 Real Estate Market Overview .. 9 Real Estate Market Analysis . 10

Egypt Real Estate Report Q4 2011 (From Issuu)

Page 1/4


ReportLinker

Find Industry reports, Company profiles and Market Statistics

>> Get this Report Now by email! Table: Egypt's Real Estate Market ' Historic Rents, 2010 And 2011 (per m2/month, US$) 11 Table: Egypt's Real Estate Market ' Net Yields, 2011 And 2012 (%) .. 11 Table: Egypt's Real Estate Market ' Terms Of Rental Contract/Lease, Mid-2011 ...... 12 Industry Forecast Scenario ... 13 Real Estate Outlook .... 13 Table: Egypt's Real Estate Market ' Rentals, 2011 And 2012 (per m²/month, US$) ... 14 Table: Forecast Yield, 2008-2015 (%) 14 Construction And Infrastructure Forecast Scenario ... 15 Table: Egypt Construction And Infrastructure Industry Data, 2008-2015 ... 15 Table: Egypt Construction And Infrastructure Industry Data, 2012-2020 ... 16 Macroeconomic Outlook ..... 18 Table: Egypt ' Economic Activity, 2008-2015 .... 20 Business Environment . 21 Egypt's Business Environment .... 21 Table: BMI Business And Operation Risk Ratings ...... 21 Table: BMI Legal Framework Rating . 23 Table: Labour Force Quality ...... 27 Table: Middle East and Africa ' Annual FDI Inflows. 29 Table: Trade And Investment Ratings . 31 Table: Top Export Destinations, 2001-2009 ....... 32 Competitive Landscape 34 Company Profiles .. 36 Egyptian Resorts Company . 36 Nasr City Housing and Development .. 38 Orascom Construction Industries ....... 39 Palm Hills Development ..... 41 Saudi Egyptian Construction Company (SECON) ...... 43 SODIC 45 TMG Holding ...... 47 BMI Methodology .. 49 How We Generate Our Industry Forecasts . 49 Construction Industry . 50 Bank Lending ...... 51 Sources ....... 51

Egypt Real Estate Report Q4 2011 (From Issuu)

Page 2/4


Find Industry reports, Company profiles and Market Statistics

ReportLinker

>> Get this Report Now by email! Fax Order Form To place an order via fax simply print this form, fill in the information below and fax the completed form to: ƒ ƒ

Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93

If you have any questions please visit http://www.reportlinker.com/notify/contact

Order Information Please verify that the product information is correct and select the format(s) you require. Egypt Real Estate Report Q4 2011

Product Formats Please select the product formats and the quantity you require. 1 User License--USD 530.00

Quantity: _____

3 User License--USD 689.00

Quantity: _____

5 User License--USD 795.00

Quantity: _____

Annual Subscription--USD 975.00

Quantity: _____

Department License--USD 1 060.00

Quantity: _____

Corporate License--USD 3 180.00

Quantity: _____

Contact Information Please enter all the information below in BLOCK CAPITALS

Title:

Mr

Mrs

Dr

Miss

Ms

Prof

First Name:

_____________________________ Last Name: __________________________________

Email Address:

__________________________________________________________________________

Job Title:

__________________________________________________________________________

Organization:

__________________________________________________________________________

Address:

__________________________________________________________________________

City:

__________________________________________________________________________

Postal / Zip Code:

__________________________________________________________________________

Country:

__________________________________________________________________________

Phone Number:

__________________________________________________________________________

Fax Number:

__________________________________________________________________________

Egypt Real Estate Report Q4 2011 (From Issuu)

Page 3/4


Find Industry reports, Company profiles and Market Statistics

ReportLinker

>> Get this Report Now by email! Payment Information Please indicate the payment method, you would like to use by selecting the appropriate box.

Payment by credit card

Card Number: ______________________________________________

Expiry Date

__________ / _________

CVV Number _____________________

Card Type (ex: Visa, Amex…) _________________________________

Payment by wire transfer

Crédit Mutuel RIB : 10278 07314 00020257701 89 BIC : CMCIFR2A IBAN : FR76 1027 8073 1400 0202 5770 189

Payment by check

UBIQUICK SAS 16 rue Grenette – 69002 LYON, FRANCE

Customer signature:

Please note that by ordering from Reportlinker you are agreeing to our Terms and Conditions at http://www.reportlinker.com/index/terms

Please fax this form to: Europe, Middle East and Africa : + 33 4 37 37 15 56

Egypt Real Estate Report Q4 2011 (From Issuu)

Asia, Oceania and America : + 1 (805) 617 17 93

Page 4/4


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.