Real estate investment in Egypt..Does it achieve the sustainable development goals?
Real estate investment in Egypt..Does it achieve the sustainable development goals?
Real estate investment in Egypt has become a tool for financing and urban planning, and is not limited to purchasing a housing unit and waiting for its price to rise. Hence the efforts of the new Real Estate Investment Fund – affiliated with the Urban Communities Authority – to open the door to application for foreign and local investors on November 1, which links this sector to the sustainable development goals, especially the eighth goal: Decent Work and Economic Growth.
So, The Earth Guards Foundation explains to you In this article the full picture: what the state announced, what are the best types of real estate investment, and where the financial return meets the social and economic impacts; So keep reading.
What is the situation of Egyptian real estate investment now?
First, we would like to inform you that the Ministry of Housing, Utilities and Urban Communities is preparing to announce – soon – the size of the assets of the new Real Estate Investment Fund, affiliated with the Urban Communities Authority. The fund aims to maximize the economic return from state-owned real estate assets and attract more local and foreign investments.
The Fund also provides sustainable sources of financing and liquidity. In order to support urban development plans and their social and economic dimensions. This is the most important feature of this step; That is, there are real estate assets that will turn into a renewable financing resource for cities.
What is a real estate investment fund?
And to understand such steps Sustainable We must realize that real estate investment funds are a tool that brings together the funds of a large number of investors in a portfolio of real estate assets. These funds are professionally managed, and the investor benefits from returns and profits without purchasing an entire property.
Is real estate investment in Egypt profitable?
Here is an important question: Is real estate investment in Egypt profitable? The short answer: Yes, except that its profitability is conditional on the type of asset, its location, and the method of management. Hence, current official indicators indicate that the state itself is betting on the sector as a source of revenue and financing.
This trend is supported by three announced data:
- New cities: The Prime Minister announced the implementation of 27 cities New ones and the establishment of 12 other cities in the next phase.
- Large real estate development: An agreement was signed between the state and a number of private sector entities to develop major mixed-use projects.
- Regional demand: Luxury property sales in Dubai recorded a 17% decline as the Middle East crisis continues; That is, the region’s markets are not immune to geopolitical events, and the importance of diversifying markets increases.
What is the profit percentage in real estate?
There is no fixed percentage suitable for all real estate investment cases, and the return on real estate investment often comes from two sources:
- Periodic rental income
- Increase in the value of the asset over time
What are the best types of real estate investment?
The best types of real estate investments depend on your goal, liquidity, and holding period. The following table summarizes the common types, with each type linked to an appropriate sustainable development goal.
| Type | Suitable for whom? | Its advantage | Caution point | Its developmental impact |
| Real estate investment apartments (residential) | Individual investment with medium capital | Continuous demand and periodic rent | Freezing capital and difficulty in selling quickly | Objective 11: Adequate housing |
| Commercial and administrative real estate | Higher risk investment | Rental return may be higher | Sensitivity to economic cycles | Goal 8: Jobs and economic activity |
| Lands in new cities | Long-term investment | Growth opportunities with the completion of facilities | It needs patience and funding for development | Objective 9: Infrastructure |
| Real Estate Investment Trusts | Diversified investment without direct management | Professional management and relatively better liquidity | Depends on the competence of the fund manager | Goal 17: Partnerships and Financing |
What about the sustainability perspective?
Regarding the interconnection between real estate investment and comprehensive sustainability, the Minister said Housing, Utilities and Urban Communities – Engineer Randa Al-Minshawy – The Ministry is developing the electronic offering system to simplify procedures for investors in the real estate sector, raise transparency, and enhance the attractiveness of new cities.
Such actions help achieve Goal 16 of the Sustainable Development Goals: peace, justice and strong institutions; Because clarity of rules reduces potential risk rates, improves the quality of projects, and enhances their social, economic and environmental impacts.
Therefore, real estate investment in Egypt is entering a more institutional phase, with a new fund, broader partnerships, and an electronic offering for new cities. It opens the door wide for the conscious investor to combine financial return with contribution to more sustainable cities.
In conclusion, you do not find institution Earth Guards However, a clear indication indicates that the most important criterion for the success of the real estate investment sector in Egypt is the quality of the transformation it brings about in the economy and construction. Therefore, the Foundation believes that the development bet begins when asset management goes beyond direct return calculations to identifying the beneficiaries of this return, and the extent of its reflection on housing projects and the efficiency of facilities.
