Written By: Jacquelyn Annete García Vadnais
Cairo is one of the most fascinating cities in the world. It has a unique culture, architecture, and recorded history dating back to the days of pharaonic Egypt. In recent years, there has been increased interest in investment in Cairo, Egypt for real estate investors. In order to ascertain whether investing in Cairo is the right decision for your investment portfolio, it is important to consider the information below.
A Brief History of Cairo
The Ancient Egyptians are one of the most famous civilizations of all time. One of the epicenters of their empire is what we now know today as Cairo. Cairo’s origins can be traced to the Ancient Egyptian city of Memphis that dates back to the 31st century BC. Throughout the years, Cairo has had invaders from many parts of the Ancient World. Romans conquered and named the city Babylon and then later on, the early Muslims, who named the city Al Fustat in the 7th century AD. In the 10th century, with the ascendance of the Fatimid Empire, the city was renamed Al-Qahira (Cairo). In the 13th century, the Mamluk Empire established Cairo as a global center, renowned in the Middle East, Africa, Asia, and Europe. However, the spread of bubonic plague in Europe impacted Cairo as well, and in the 14th century, much of its population was decimated. The Ottomans rose to power in the 16th century, but European powers began to have greater influence in the region and through World War I. The city’s population has continued to grow steadily since the world wars, as has its influence as a center of learning, media, culture, ancient, and modern architecture, and Islamic influence. Modern Cairo has an abundance of museums, theaters, cinemas, mosques, and churches, and a strong tradition of journalists, and fiction, and non-fiction writers. Cairo’s cultural influences span from its ancient empires to its association with the Roman empire, various Islamic empires, as well as more recent colonial influences. This unique history throughout the ages has shaped a culture, and society that is unmatched in any other part of the world.
Tourism Rentals
Cairo is one of the most fascinating cities in the world. It has a unique culture, architecture, and recorded history dating back to the days of pharaonic Egypt. In recent years, there has been increased interest in investment in Cairo, Egypt for real estate investors. In order to ascertain whether investing in Cairo is the right decision for your investment portfolio, it is important to consider the information below.
A Brief History of Cairo
The Ancient Egyptians are one of the most famous civilizations of all time. One of the epicenters of their empire is what we now know today as Cairo. Cairo’s origins can be traced to the Ancient Egyptian city of Memphis that dates back to the 31st century BC. Throughout the years, Cairo has had invaders from many parts of the Ancient World. Romans conquered and named the city Babylon and then later on, the early Muslims, who named the city Al Fustat in the 7th century AD. In the 10th century, with the ascendance of the Fatimid Empire, the city was renamed Al-Qahira (Cairo). In the 13th century, the Mamluk Empire established Cairo as a global center, renowned in the Middle East, Africa, Asia, and Europe. However, the spread of bubonic plague in Europe impacted Cairo as well, and in the 14th century, much of its population was decimated. The Ottomans rose to power in the 16th century, but European powers began to have greater influence in the region and through World War I. The city’s population has continued to grow steadily since the world wars, as has its influence as a center of learning, media, culture, ancient, and modern architecture, and Islamic influence. Modern Cairo has an abundance of museums, theaters, cinemas, mosques, and churches, and a strong tradition of journalists, and fiction, and non-fiction writers. Cairo’s cultural influences span from its ancient empires to its association with the Roman empire, various Islamic empires, as well as more recent colonial influences. This unique history throughout the ages has shaped a culture, and society that is unmatched in any other part of the world.
Tourism Rentals
Since Cairo is a very attractive destination for tourists, it is a great place to consider buying a smaller apartment unit to rent to tourists. According to market analysts, there is a trend in purchasing smaller units due to their affordability and renting them to tourists or short-term tenants for business travel. Market research shows that these types of investments are easier to both sell, and rent. In Cairo, due to the close ties to tourism, it is a great potential investment to consider this strategy.
Rising Prices in Real Estate
Over the years the price of real estate has been steadily increasing in Cairo, stoking speculation of a real estate bubble. Market analysis shows that there are rising prices in the upper end of the market, as well as a growing demand for quality, affordable housing. The government, and the market is responding to these indicators, and trying to dampen market volatility. However, for this reason, Cairo is a market better suited to caution, patience, and a long term buy-and-hold strategy. Ain Sokhna is a neighborhood that has a steady demand, as developers are steadily constructing housing.
Incentive to Not Flip Real Estate
There has recently been a tax put in place to help stabilize market prices to discourage buying real estate and flipping it for a higher price. For this reason, real estate investors stand to gain if they are in it for the long term. Since the Egyptian government has initiated this taxation scheme, it has allowed for investors to retain a more stable price value increase on real estate than they would if the prices were surging due to many real estate investors flipping real estate and driving up the cost for foreigners and locals alike.
Quality of Life
While Cairo does offer a good quality of life, there are some factors that investors should take into consideration. For example, petty crime is relatively common, especially in the city itself, and near touristic areas. Additionally, in recent years there has been an ebb and flow of tensions with regards to political affiliations, and social issues. Investors should be cognizant of these issues in order to assess the investment risk in Cairo, and in Egypt overall. In terms of cost of living, it is quite easy to have a very affordable and healthy lifestyle. Additionally, there are world-famous cafes, bazaars, wonderful Mediterranean food, and many opportunities to see the country’s monuments.
High Level of English
Due to British colonial influence in Egypt, there is an emphasis on English study for those that reside in cities such as Cairo. This is beneficial in terms of locating law firms that have a presence in the UK or finding contractual structures that are available in English. Additionally, for those that decide to invest in Cairo and reside there as well, it is possible to communicate with locals there in English with more frequency than other markets.
Future Market Outlook
Cairo is in a very interesting place in terms of future market outlook because it does have a fantastic climate and proximity to many major markets in Europe, Africa, and the Middle East. This, combined with the city’s historic roots, will create a very fascinating picture for Cairo as more developers construct luxury apartment buildings and political tensions dissipate. That said, Cairo has had a steady increase in real estate in recent years, and analysts concerns about volatility in the form of a real estate bubble are being addressed by the government, and the market.
Final Remarks on the Subject
For those real estate investors that are looking for a place to acquire property in a tourist destination with a potential business appeal due to its strategic location, Cairo, Egypt is a market to consider. The affordable cost of living, potential long-term gains, world-class tourism industry, and wonderful culture allow for a high quality of life. It will be intriguing to see how Cairo continues to develop with the city’s recent addition of developments in Ain Sokhna, New Cairo and other wealthy suburbs for retreats along the picturesque lands that Egypt has to offer. For investors looking for a locale that can double as a solid real estate investment and a vacation destination, Cairo is certainly worth considering.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
Rising Prices in Real Estate
Over the years the price of real estate has been steadily increasing in Cairo, stoking speculation of a real estate bubble. Market analysis shows that there are rising prices in the upper end of the market, as well as a growing demand for quality, affordable housing. The government, and the market is responding to these indicators, and trying to dampen market volatility. However, for this reason, Cairo is a market better suited to caution, patience, and a long term buy-and-hold strategy. Ain Sokhna is a neighborhood that has a steady demand, as developers are steadily constructing housing.
Incentive to Not Flip Real Estate
There has recently been a tax put in place to help stabilize market prices to discourage buying real estate and flipping it for a higher price. For this reason, real estate investors stand to gain if they are in it for the long term. Since the Egyptian government has initiated this taxation scheme, it has allowed for investors to retain a more stable price value increase on real estate than they would if the prices were surging due to many real estate investors flipping real estate and driving up the cost for foreigners and locals alike.
Quality of Life
While Cairo does offer a good quality of life, there are some factors that investors should take into consideration. For example, petty crime is relatively common, especially in the city itself, and near touristic areas. Additionally, in recent years there has been an ebb and flow of tensions with regards to political affiliations, and social issues. Investors should be cognizant of these issues in order to assess the investment risk in Cairo, and in Egypt overall. In terms of cost of living, it is quite easy to have a very affordable and healthy lifestyle. Additionally, there are world-famous cafes, bazaars, wonderful Mediterranean food, and many opportunities to see the country’s monuments.
High Level of English
Due to British colonial influence in Egypt, there is an emphasis on English study for those that reside in cities such as Cairo. This is beneficial in terms of locating law firms that have a presence in the UK or finding contractual structures that are available in English. Additionally, for those that decide to invest in Cairo and reside there as well, it is possible to communicate with locals there in English with more frequency than other markets.
Future Market Outlook
Cairo is in a very interesting place in terms of future market outlook because it does have a fantastic climate and proximity to many major markets in Europe, Africa, and the Middle East. This, combined with the city’s historic roots, will create a very fascinating picture for Cairo as more developers construct luxury apartment buildings and political tensions dissipate. That said, Cairo has had a steady increase in real estate in recent years, and analysts concerns about volatility in the form of a real estate bubble are being addressed by the government, and the market.
Final Remarks on the Subject
For those real estate investors that are looking for a place to acquire property in a tourist destination with a potential business appeal due to its strategic location, Cairo, Egypt is a market to consider. The affordable cost of living, potential long-term gains, world-class tourism industry, and wonderful culture allow for a high quality of life. It will be intriguing to see how Cairo continues to develop with the city’s recent addition of developments in Ain Sokhna, New Cairo and other wealthy suburbs for retreats along the picturesque lands that Egypt has to offer. For investors looking for a locale that can double as a solid real estate investment and a vacation destination, Cairo is certainly worth considering.
--
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
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