Return on Equity for Real Estate Investors in Egypt (RORI)

General|6.6 MIN READ|Updated on: 07 October 2023|Written by: Mohamed Hassan

Return on Equity for Real Estate Investors in Egypt (RORI)

Many investment ventures have steadily grown in the recent years in Egypt. There are many current investment opportunities in Egypt, specifically in the newly outstanding expansion of the current capital of Cairo into New Cairo, New Capital and even Mostakbal City, where it has been known that there is a large scale of real estate developments that are taking place. There are many different developments that you can pursue when you are looking to place on offer towards a great investment opportunity.

There are many major real estate developers who have their projects under various stages of project implementation in these locations which include Tatweer Misr, City Edge, Palm Hills and Sodic. All of these stated developers offer tremendous options if you are looking to invest within the real estate industry as there are ongoing projects in some of Cairo’s most exciting real estate centers. 

·       Does the Property Market in Egypt offer Higher RORI?

Return on Real Estate Investment (RORI) is an accounting term that indicates the percentage of the invested money in a single property that is recouped after the deduction of associated costs. For the non-accountant, this many sound a little confusing but there is a formula that will make the situation better as it is stated as follows:

RORI = Gain from Investment – Cost of Investment ÷ Cost of investment

Regarding real estate investment, people will often speak about the return on equity for real estate investors (RORI). RORI is the percentage of the money that is recouped on the total investment. This is better understood when you subtract the return on investment from total investment and then divided by total investment in the process.

This will show how quickly you will be going to recover the entire amount that was invested in the first place. A higher RORI indicates that you are going to recover your investment in a shorter period of time while a low RORI means the capital growth on the potential investment will be slow in return.

The real estate investment in the newly emerging areas of the New Capital, Mostakbal City and New Cairo can actually offer you a higher RORI as the city of Cairo itself has witnessed a massive expansion. The new city that is being developed off the downtown of Cairo, which is billed as the new capital of Egypt.

This new township has attracted many tremendous investments from the government and private real estate developers. The development of the new city has given a boost to the local economy and a large number of people from different parts of the country have moved into these new townships in search of a more premium location that can be suitably near the capital city.

These new developments are creating new employment opportunities. There are more and more professionals that are moving into these new areas where there will be more employment opportunities and modern lifestyle options that would be available in many forms. With all the developments and sustained demand that has been created for both residential and commercial properties.

If you look at the way that property prices have increased throughout the past years, you will not fail to realize that the real estate investments made in Cairo, would be new and emerging townships that have offered much higher RORI than property markets that are located elsewhere within the country.  

·       Where there is High Supply there will be High Demand

For the first time in history, the demand for luxurious yet affordable properties would be high in the new property markets in the current capital city of Egypt. There are many kinds of options that you can pursue a profitable investment in both residential and commercial properties.

You can find many properties that would include one and two bedrooms apartments to 3-4 bedrooms, mansions, villas, townhouses and even the property markets located in the suburbs in Cairo would offer a wide range of investment options. This can actually make it a difficult decision to choose the right property that can promise a higher RORI and capital growth in return. You should always consider that the location of the property is very important as it is one of the major factors for the growth of capital within the property. You will not be able to afford choosing the right property in the wrong location which in return will inherent weaknesses.

As an investor looking towards the real estate industry, you might not have the best knowledge of knowing where to put your investment and knowing the best investment destinations for a promising real estate return that would be profitable. It would be best that you would seek the assistance of property investment consultants. They are better informed about how different locations have performed regarding the terms of capital growth and RORI. A poorly chosen location in a prime property market may not give you the same high rate of RORI or growth within the capital which makes other properties in a popular location in a sub-prime property market can actually offer a better investment. There must be the right research made about the various properties and real estate markets and realizing the pros and cons of the current situation within all the locations and properties provided.

·       Investment Trends

Real estate investments in New Cairo as well as New Capital have ensured that you can live in one of the most secured and peaceful locations within the beautiful country of Egypt. The developments in the new townships are fully protected, secured and surrounded by boundary walls with 24 hour security. With excellent amenities and facilities in their proximity, you cannot go wrong by choosing to invest in such great locations providing outstanding properties regardless if you are looking for apartments, villas or even mansions. There are also many natural parks and green spaces, shopping malls and restaurants, branded outlets and many entertainment options.

With all that is provided and presented above from New Cairo, New Capital and the Mostakbal City is a great real estate investment if you are looking to select your property after the much needed research and consultation with professional property consultants as well as investment consultants as well. Just remember that the right real estate investment in these destinations are most likely to bring you the highest RORI possible at the current situation of the country.

Since the property market in Egypt is at its peak in the case of demand actually far outnumbers the supply that can be provided. It would be the best option to consider investing in the country property markets at this time when the economy of the country is poised for higher growth and the government has chosen to invest heavily in infrastructure development as well.

This is all leading to a higher attractive real estate market with all of the biggest real estate developments in New Cairo and New Capital. There have been huge investments that have already started and in return have changed the landscape and skylines of the country. Demand is robust and likely to continue to grow in the near future. It is perhaps the best time to make such profitable investments in the real estate market in Egypt.


Despite the many positive aspects towards the real estate investments that can be made in the newly developed areas within the country, the investment in the property market in Egypt has a risky proposition if you are looking to not be careful within choosing the property. The property market in Egypt is as diverse as the country itself. It is factual that the real estate sector is now witnessing a phenomenal growth within the country but that doesn’t mean that all the property markets offer the same high rate of RORI and capital growth within New Cairo, New Capital and Mostakbal City.

When you are planning to make investments in New Capital and New Cairo townships for higher RORI, it will be advisable that you consult with us. We are one of the most trusted and reliable property consultants in these real estate markets and we can guide you through the entire process of your potential profitable investment. You can rest assured that the highest quality of professional real estate service from our end. Real estate investment in Egypt can offer you higher RORI and to know more about these real estate investments that can be made and the many opportunities that can be provided, please feel free to contact us today at House Solution Egypt. 

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