Residential Real Estate Leases - Egypt

The projected revenue of the Residential Real Estate Leases market market in Egypt is expected to reach US$34.68bn by 2024.
Apartment Leases dominate this market segment, with a projected market volume of US$25.48bn in 2024.
The revenue is anticipated to exhibit an annual growth rate of 8.38% (CAGR 2024-2029), leading to a market volume of US$51.85bn by 2029.
Egypt's residential real estate leases market is currently experiencing a surge in demand due to the government's efforts to attract foreign investors.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Egypt has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the changing preferences of customers in Egypt. More and more people are opting to lease residential properties rather than buying them. This is due to a variety of factors, including the rising cost of purchasing property, the flexibility and convenience of leasing, and the increasing availability of high-quality rental properties. Additionally, many young professionals and expatriates are choosing to lease properties as they may not have the financial stability or desire to commit to a long-term investment in real estate.

Trends in the market: The Residential Real Estate Leases market in Egypt is also being driven by several key trends. Firstly, there has been a surge in demand for rental properties in urban areas, particularly in major cities such as Cairo and Alexandria. This is mainly due to urbanization and the increasing population in these areas. As a result, developers and investors are focusing on building and offering more rental properties in these locations to meet the growing demand. Another trend in the market is the rise of serviced apartments and co-living spaces. These types of properties are becoming increasingly popular among young professionals and expatriates who are looking for convenience and a sense of community. Serviced apartments offer a range of amenities and services, while co-living spaces provide shared living arrangements and communal facilities. These options cater to the changing lifestyles and preferences of modern tenants.

Local special circumstances: There are also some local special circumstances that are contributing to the development of the Residential Real Estate Leases market in Egypt. One of these is the government's efforts to promote affordable housing. The Egyptian government has implemented various initiatives and programs to increase the supply of affordable rental properties, particularly for low-income households. This has created opportunities for developers and investors to participate in affordable housing projects and benefit from government incentives.

Underlying macroeconomic factors: Several underlying macroeconomic factors are also playing a role in the growth of the Residential Real Estate Leases market in Egypt. The country's stable economic growth, coupled with low interest rates, has made it more affordable for individuals and businesses to lease properties. Additionally, the government's focus on economic diversification and attracting foreign investment has led to increased job opportunities and a growing expatriate population. This has further fueled demand for rental properties, particularly in urban areas. In conclusion, the Residential Real Estate Leases market in Egypt is experiencing significant growth due to changing customer preferences, key market trends, local special circumstances, and underlying macroeconomic factors. As more people opt to lease residential properties and demand for rental properties in urban areas continues to rise, the market is expected to further expand in the coming years.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Leases - Egypt

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Leases - Egypt

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts