Egypt Property News

Confidence rises in Cairo property market

Confidence is rising in the Cairo property market, which has enjoyed a positive start to 2015.

The latest real estate market report from JLL reveals that all sectors of the city's market witnessed a positive performance in Q1 2015.

"Significant efforts by the government to expand the economy and attract investors, including the recent Egyptian Economic Development Conference, have resulted in confidence and new investment commitments of more than USD 12.5 billion from four GCC countries," comments Ayman Sami, Head of Egypt Office at JLL MENA.

The confidence has fed into the recently announced development of the new Cairo Capital, which marks a "natural long term progression" to the East of Cairo.

"Given Cairo Capital will create a bigger magnet for business towards the East of Cairo, we expect that the West will need to reposition itself differently, and this will most likely be as a tourist and entertainment area," says Sami. "These trends provide great optimism as all real estate sectors should continue to benefit in 2015 and beyond."

Sales increased in the first quarter of 2015, while prices of apartments and villas also climbed, thanks to a limited number of units left in developments.

250 units in Al Rehab City and 640 units in Zayed complex were completed in Q1 2015, though, while an additional 31 developments with 30,000 units are expected to be completed in the rest of 2015.

Hong Kong and Macau added to restricted Indian property list
The Reserve Bank of India has added Hong Kong and Macau to its growing list of restricted countries for property investment.

The two nations join countries such as Sri Lanka, Afghanistan and Iran, whose citizens need prior permission from the RBI before acquiring or transferring immovable property in India.

"The primary goal of RBI is to have control on the capital movement coming into and going out of India," explains Shobhit Agarwal, Managing Director – Capital Markets, JLL India. "Real estate has always been a sector which can consume a sizable sum. There is a probability that the funds, thus coming into the country, might get used for unwarranted purposes. Considering the current geopolitical scenario, the move is proactive and apt."

The rule does not apply to Indian citizens resident outside India who can acquire or transfer any immovable property other than agricultural or plantation property or farm house. In case of transfer, the transferee needs to be either a citizen of India or person of Indian origin resident outside India.