Property prices in Egypt four times higher than counterparts in America

Relative to income, house prices in Cairo are more costly than in Western Europe, two times more expensive than in most Gulf countries and four times those of the US, says a report.

The report issued by US-based EconoMonitor expects the residential and commercial units prices to increase, while the office segment is expected to stagnate, reports Cairo Portal.

The sale prices of apartments and villas rose by nearly 15 and 25 per cent respectively during 2014, underpinned by the stable political environment and the improving economic outlook, says the report, noting that in 2014 the Egyptian economy grew by 2.1 per cent.

The Egyptian economy grew during the first nine months of last fiscal year by 4.7 per cent.

The report expects prices and rents to further strengthen, as supply is not expected to grow significantly, mostly due to delays in completion of some projects.

In the retail segment, rents are expected to rise. During 2014, improving demand – especially from the Food & Beverage (F&B) sector – led to a fall in vacancy rates to 19 per cent, from 25 per cent in 2013.

source:AME