Real Estate in Egypt
Real estate has grown to become one of the most profitable and growing businesses in the world. you can make a lot of money by starting a real estate business. Whether as a real estate agent or as an investor in Egypt, the opportunities are endless.
Starting your own real estate business can be a good carrier option, or a good way of expanding your financial muscle. However, this comes with it’s unique difficulties and challenges. In Egypt, the market is well established with tough but healthy competition from numerous new and established investors. To survive the market, you should be prepared to build a unique brand that will stand you out from the crowd.
What is Real Estate?
Real estate business involves buying, selling or renting a property, building, home or land. Real estate agents assist homeowners, businesses and investors who buy and sell all four types of properties.
The real estate business can be divided into further parts like loan servicing, residential and commercial properties etc. Examples of residential real estate include undeveloped land, houses, condominiums, and townhouses; examples of commercial real estate are office buildings, warehouses, and retail store buildings; and examples of industrial real estate include factories, mines, and farms.
Real Estate in Egypt
Real estate in Egypt is a serious business and is still expanding. The industry has become a gold mine over the years, and many smart entrepreneurs have tapped into it and are making huge returns.
Egyptians, as well as foreign investors, are always in need of residential apartments, office building, and commercial outlets. They look to either buy or rent buildings and structures of their choice, and they sometimes need to consult real estate agent or expert before making their choices.
This explains why the real estate industry abounds with business opportunities and has been ranked as the 5th largest contributor to the GDP of Africa’s largest economy.
Egypt’s housing market made a surprise comeback, buoyed by the government’s tough economic reforms in recent years, particularly the recent liberalization of foreign land ownership rules in the country.
There is a huge, real demand for housing in Egypt, as the country’s population increases by 2.5 million annually and there are about one million marriages taking place every year.
Government’s Role in Supporting Real Estate Investors in Egypt:
The government has removed all restrictions on foreign ownership of land and property in Egypt, in an effort to buoy the housing market. The government, the biggest landowner in Egypt, can now use its land for public-private partnership schemes. These improvements, together with the fundamentally strong local demand, are now beginning to boost the housing market, and the overall economy in general.
Egypt’s Economic Growth
Egypt’s economy remains robust and inflation moderates, according to IMF.
During 2020, Egypt has successfully weathered the adverse impact of the COVID-19, seeing its real GDP rising by 3.6%. The economy has expanded over the past 5 years by a healthy 4.8%, on average.
according to IMF, The Egyptian economy is projected to expand by 2.5% this year and by another 5.7% in 2022.
How to start a Real Estate Business
Generally, to be successful in any business line, you should have sufficient knowledge and information about that line of business. This post aims to provide you with the required knowledge and insight into making an investment in real estate in Egypt.
1. Have a workable business plan
You need to strategically plan your business to be able to conquer this market. Investing in real estate is like starting any other business. It needs a business plan. Not just a business plan, a workable business plan.
A business plan is vital for any real estate investor, and one of the best advice you’ll get in the housing market is to start out small and plan, plan, plan! This step is especially important if you’re planning on becoming a real estate investor for the long term. In this case, you want to grow your real estate investment portfolio strategically.
2. Build a unique brand
Because there are many existing successful investors in real estate in Egypt, starting this business will demand that you set up a credible brand for your business. Brand credibility for a successful business can not be overemphasized. Branding is you creating a perception about your business in the minds of people.
To turn your real estate business into a trustworthy brand, you need to give your customers more than enough value for their money and build a relationship by engaging with them on a personal level. Also, set your real estate business apart from the competition by investing in premium branding identities such as logo, website, adverts and more.
3. Legally register the business
Legalize the existence of your business by registering the business with the General Authority for Investment and Free Zones GAFI).
4. Raise the required capital to start
Real estate business is capital intensive and requires a huge amount of investment. If you do not have enough, it is important that you seek investors. You can look for equity investors that can give you enough leverage at the start and accelerate growth.
If your savings and financial capacity are not enough to start, you can source for alternative funding.
5. Get Started & Get Working
The last step to starting a real estate business is execution. Execute on everything that you’ve developed in your business plan. A good number of businesses fail because of poor execution. Begin now to practice every item in your business plan. Life them from the paper.
Starting a real estate business is not for the faint hearted. It requires strength of character and is capital intensive. So, to be successful in the real estate business, you must be prepared to face the challenges. At a personal level, and as a business owner, nurture your ambitions and become a goal-oriented and organized person. Keep in mind that the real estate sector is not about achieving instant success. Instead, it is a long game, which requires a lot of patience.
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