Published: 9th September 2013
Whilst the dust settles follows the recent political upheaval in Egypt, the real estate industry received some good news from the HSBC this week. The latest HSBC Global Asset Management Outlook Report provided positive feedback on Egypt, stating it expects it to show positive growth in the next twelve months.
The Outlook Report stated that Egypt was likely to benefit from its move favourable demographic profile, diversified economy and geographical location. The report also said that Egypt looked set to benefit from the delivery of a number of international aid pledges which included IMF Funding.
Whilst Egypt has been taking measures to deal with the structural budget deficit in the country, currently sitting at approximately 8.6% of GDP, it is thought that any subsequent weakening of the currency will prove positive for tourism and other forms of inward investment.
It is also thought that consumer optimism towards Egypt will continue to improve, as the political situation graually becomes more settled. As a result of this increased public sentiment, HSBC stated that they expected an increase in foreign investment in Egypt.
Whilst previously fears had been raised regarding the new administrations stance on tourism, recent meetings have gone some distance to acknowledging the tourist industries importance to the wider Egyptian economy.
The report is further positive news for the Egyptian real estate market, which has been impacted by the recent political situation in the country. With early indications pointing to a strong year for the Egyptian tourism industry in 2012, this can only bode well for the ongoing demand for property in Egypt, particularly around the Red Sea resorts of Sharm El Sheikh, Hurghada, Sahl Hasheesh and Marsa Alam.