Real estate investment in emerging markets such as Egypt has played an increasingly important role in investment portfolios in recent years. Rapid development across the Middle East and North Africa has led to greater returns on investment and the opportunity to invest in high quality off plan real estate projects. The rate of population growth has also created a high demand for new affordable housing projects, particularly amongst the younger generations. In addition, improvements in education across the region have led to a growing middle class with increased disposable income looking to upgrade their accommodation.
There are a number of regions in Egypt which are currently the focus of high levels of investment in real estate, both from the local population and from abroad. The capital Cairo and the surrounding areas of Giza, 6th October City and New Cairo boast a plethora of new development projects, across residential, commercial and retails sectors. All of the major Egyptian developers are present in these areas and offer a wide variety of investment opportunities for global real estate investors.
In addition to the developments around the capital city, there are also a number of new real estate investment opportunities in other parts of Egypt. The developments along the Mediterranean coastline of the North Coast and Alexandria offer other options for investors whilst the expansion of resorts in Sinai and along Egypt's Red Sea coast continue to offer excellent rental incomes. In these areas particularly it is feasible for real estate investors in the country to capitalize on Egypt's well developed tourism industry.
Plans are also in place to introduce a more comprehensive legal structure to support additional real estate investment into Egypt. The development of this legal framework will be fundamental to the growth in foreign investment into the country. Continued investment from government in infrastructure projects across Egypt will also play a key role in delivering greater real estate investment from abroad. Taking into account the population growth, scale of development and governmental initiatives, Egypt is set to become one of the key emerging markets for real estate investors in the years to come.