In Today’s Story, we summarize our updated view on Egypt Real State Sector, which we assign an overall “Neutral” view with different views for each of the four main segments, namely Residential (Negative), Hospitality (Positive), Retail (Neutral), and Office (Neutral). We also list our top stock picks in each of the segments.
Performance of the real estate sector in Egypt over the past couple of years has been resilient, aided by the EGP floatation. Yet, the residential segment’s future does not look as comforting. Most argue that developers, small- or large-sized, concentrated their offerings on housing units that cater to one sub-market, namely the high to upper middle class, which is widely perceived to be nothing short of an unmitigated disaster. While this perception could hold true in certain scenarios, some market patterns indicate otherwise. In this note, we lay out the sector’s landscape from its four different main segments.
For more details, please read the full report below.