Liverpool, Merseyside United Kingdom (PressExposure) May 15, 2011 -- A report recently issued by CitiGroup reinforces its confidence in the Egyptian economy. The group still maintains that there is huge potential for growth over the next 40 years. This timeline ensures that Egypt remains one of the most important emerging markets in the world.
The Egyptian economy is ranked as being one of the most important in the bank G3 (global growth generated), with the other countries being China, Iraq, the Philippines, Nigeria, Vietnam, Mongolia and India.
The report feels that the new climate of political stability will entice investors to benefit from the expected growth in the Egyptian market. Egypt has a population of 84.4 million which is expected to increase to 129.5 million in 2050. This will lead to a growth of 8.6% in the Egyptian workforce, who will be able to positively contribute towards the economy, and who will also fuel demand within the economy.
CitiGroup expects that the new democracy and continued reforms towards more transparency will lead to greater investment opportunities, with the Egyptian economy achieving an average growth rate of 5% over the next 40 years.
In the short term it seems likely that 2011 will be a quiet year for Egyptian property, especially in Cairo. Domestic demand is still high but the middle class in Cairo are very wary of buying property at the moment. Hisham Halaldeen who is senior investment analyst at Naeem Holding expects any property priced over LE 500,000 to suffer significantly.
He also believes that the social impact of the recent uprising will be to delay marriages due to financial constraints, which will also impact the property market as much of the demand is due to marriages. Investors will also be reluctant to commit to an unstable market and are more likely to look towards the Red Sea resorts which were relatively unaffected by the political turmoil.
Property in Hurghada, Sharm el Sheikh and Sahl Hasheesh are expected to see increasing foreign demand, especially as we head into another summer of uncertainty for Europe.
Interest in buying property in Egypt has increased significantly over recent years with the attraction of low entry level prices and year round sunshine and or course not fogetting the established divers market for those tourists who enjoy these activities.
Demand is seen to be growing in the Egyptian real estate market which appear to be borne out by property agents active in this market.