Return on Equity for Real Estate Investors in Egypt (RORI)
In recent years, investment in Egypt has seen steady growth. There are many investment opportunities in Egypt In particular, the expansion of capital Cairo into New Cairo, New Capital, and Mostakbal City where large scale real estate developments are taking place offer a great investment opportunity to real estate investors. Among the major developers who have their projects under various stages of project implementation in these locations include Tatweer Misr, City Edge, Palm Hills, and Sodic. All these developers offer excellent investment options in their ongoing projects in some of Cairo’s most exciting real estate centers.
Return On Real Estate Investment (RORI) is an accounting term that indicates the percentage of invested money in a single property that's recouped after the deduction of associated costs. For the non-accountant, this may sound confusing, but the formula may be simply stated as follows:
RORI = Gain From investment - Cost of investment ÷ Cost of investment
When it comes to real estate investment, people often talk about return on equity for real estate investors (RORI). RORI is the percentage of money recouped on the total investment. This is worked out by subtracting the return on investment from total investment and then diving by total investment. This shows how quickly you are going to recover the entire invested amount. 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 your investment is slow. Now, do real estate investments in the newly emerging areas of New Capital, Mostakbal City, and New Cairo offer higher RORI? Currently, the Cairo city is witnessing massive expansion. A new city is being developed off the downtown Cairo which is billed as the new capital of Egypt. This new township has attracted huge 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 to these new townships in search of more premium locations to live near the capital city. These new developments are creating new employment opportunities. More and more professionals are now moving to these new areas where there are more employment opportunities and modern lifestyle options are available in plenty. All this has created and sustained the demand for residential and commercial properties. If we look at the way property prices have increased over the last years, we cannot fail to notice that the real estate investments in Cairo’s new and emerging townships have offered much higher RORI than property markets elsewhere in the country.
The demand for luxury but affordable properties is high in the new property markets of Cairo. There are all kinds of options available in both residential and commercial space. One and two bedroom apartments to 3-4 bedroom, mansion, villas, townhouses, the property market in Cairo’s suburb offer a wide range of investment options. This can make it difficult to choose the right property which can promise higher RORI and capital growth. Mind you, location is very important for the capital growth of property. You cannot afford to choose the wrong location which has inherent weaknesses. As an investor, you may not have the best idea where to put in your investment in the new promising real estate investment destinations. It is in this light that it is advisable that you seek the help of property investment consultants. They are better informed about how different locations are performing in terms of capital growth and RORI. A bad location in a prime property market may not give you the same high rate of RORI or capital growth that property in a good location in a sub-prime property market can offer. So for your investment to attract highest RORI, you need to do some research about the various property markets and their pros and cons.
Investments in New Cairo as well New Capital also ensure that you can live in one of the most secure and peaceful zones in the country. The developments in the new townships are protected by boundary walls and 24X7 security. They have excellent amenities and facilities in their proximity. Parks and green spaces, shopping malls and restaurants, branded outlets and leisure and entertainment options, the new townships are bustling with urban life and comfort that it brings. All these make New Cairo, New Capital and the Mostakbal City great real estate investment destinations in Egypt. If you select your property after necessary research and consultation with professional property investment consultants, your investments in these destinations are most likely bring you higher RORI.
The property market in Egypt is at its peak as the demand far outnumbers the supply. It is the best time to consider investing in the country’s property markets. The country’s economy is poised for high growth and the government has been investing heavily in infrastructure development. All this is leading to a highly attractive real estate market. In particular, some of the biggest developments in New Cairo as well New Capital have changed the way Egypt’s property market has been so far. Now, huge investments have already begun to change the country’s landscape and skylines. Demand is robust and likely to continue to grow in the near future. It is perhaps the best time to make investment in Egypt’s real estate market.
Despite all its positive aspects, investment in Egypt’s property market can be a risky proposition if you are not careful in choosing the property. Egypt’s property market is as diverse as the country. It is true that the real estate sector is witnessing a phenomenal growth in the country. But all property markets do not offer the same high rate of RORI and capital growth as New Cairo, New Capital, and the Mastokbal city.
If you are planning to make investments in New Capital and New Cairo townships for higher RORI, it will be advisable that you consult us. We are one of the most trusted property consultants in these markets and we can guide you through the entire process of your investment. You can rest assured of the highest quality of professional service from our end. Real estate investment in Egypt can offer higher RORI. To know more about real estate investment opportunities in Egypt, please feel free to contact us.
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