Bassem Elsherbini, CEO and founder of ETQAN Business Development, told Daily News Egypt that the return on investment in the Egyptian real estate sector depends on its type - commercial, administrative, residential or resort.He noted that the annual yield in Egypt ranges from 10-15%, unlike more stable markets such as the UK or Dubai markets, where it usually does not exceed 5% to 8%.
Elsherbini stressed that commercial real estate provides the highest return on investment in Egypt, followed by resort real estate, which is showing significant growth.Next come the administrative facilities, and residential real estate brings the lowest returns.
Ashraf Diaa, Chairman of A-Squared Consulting, shared that the value of real estate in Egypt as a whole is increasing by 15-20% per year, and also stressed the importance of taking into account the internal rate of return (IRR), which reflects the growth of each invested pound over time. According to the Diaa, the profitability from renting commercial real estate ranges from 10 to 14%, and from renting residential properties is 7 to 9%. Hatem Adel, CEO of RoadMap Consulting, said that the return on investment in commercial real estate reaches 12%, especially in newly built cities.Experts noted that economic stability, exchange rate liberalization and a stable dollar have revitalized the real estate market, making investments in it more sustainable.
Source: Daily News Egypt
