Experts in the real estate sector are calling for the adoption of alternative strategies to build a diversified real estate portfolio that ensures recurring income and mitigates risks. They emphasize that there are numerous promising opportunities, particularly in flexible sectors experiencing supply shortages, such as healthcare, logistics, and education. Additionally, the hospitality sector offers lucrative prospects for those seeking to adapt and explore new investment areas.
During a panel discussion titled “A New Framework for Flexibility – Capitalizing on Real Estate Market Opportunities in Egypt,” organized by JLL, experts stated that easing inflationary pressures would contribute to the revival of real estate transactions and asset values, despite overall economic challenges. This highlights the sector’s ability to adapt and remain flexible in the long term.
They also affirmed that real estate remains the preferred investment as a secure means to confront current economic challenges resulting from currency depreciation, inflation, interest rate hikes, foreign currency shortages, and import restrictions. Analysts further emphasized the importance of considering social and environmental impact alongside financial returns to create value and unlock asset potential. In light of rising raw material costs in the construction market, JLL experts urged development companies to allocate budgets to confront inflation and closely monitor expenses, as well as explore alternative paths such as prefabrication or digital solutions to expedite construction processes and ensure timely delivery according to set schedules.
James Allen, CEO of JLL Middle East and Africa, noted that despite inflationary pressures and local currency depreciation, the real estate sector in Egypt continues to maintain its dynamism and growth potential. Real estate remains a safe investment for hedging against current challenges. The strong interest in real estate investment and the expected launch of several high-quality projects in the medium to long term attest to the strength of the market.
Ayman Sami, Managing Director of JLL in Egypt, stated, “The inflationary environment enables investors and market players to seize new opportunities for accelerated growth. Investments in high-demand sectors and diversified investment portfolios that combine traditional and sustainable assets play a fundamental role in ensuring a stable trajectory amidst real estate market fluctuations. Investors’ success in adapting and adopting flexible strategies allows them to benefit from emerging trends and achieve returns when the market stabilizes.”
JLL officials presented an optimistic outlook for the sector during the panel discussion, especially considering the growing tourism demand and increased expenditure on entertainment and tourism infrastructure, which have led to significant gains in the hospitality market. Luxury hotels, in particular, have achieved almost record-breaking occupancy rates.
