It is no secret that there has been a lot of speculation around Egypt’s real estate market becoming saturated or whether it is in a growing bubble that could burst and lead to a market as well as an economic crash. However, according to the latest International Monetary Fund report, Egypt’s economy remains on the mend with the real estate sector being one of the primary contributors to the growing GDP.
However, more recently there has been a lot of speculations regarding the effects of the forecasted exponential growth in the e-commerce sector on the commercial real estate sector. But, these fears are ungrounded, instead the forecasted growth within the e-commerce sector would actually sustain and increase demand within the real estate commercial sector -especially in retail and offices- for multiple reasons.
First, as previously mentioned in our tips and reports, despite challenges in the retail real estate sector internationally, brick and mortar stores remain a crucial factor for any retailer or brand to build and maintain client loyalty as well as market relevancy. The death of large traditional anchor department stores is not an indication of the death or even decline in the physical retail culture.
Second, the growth of e-commerce has proven to increase demand for office spaces due to larger e-commerce corporations seeking their share in an expanding market and in turn expanding their corporate management offices and facilities. Furthermore, e-commerce growth is also linked to a rise in demand for supplementary service providers that e-commerce corporations can outsource some processes to such as delivery, customer service, warehousing management, and IT services. Consequently, these are also service providing firms that increase demand for office space, therefore we can safely expect a boom in the commercial sector as a result of the forecasted e-commerce growth in Egypt by 2020.
For more details on how you can capitalize on investment opportunities or locations to build and expand your services as a retailer or service provider, contact our B2B research and development consultants.