Amwal Al Ghad English - 2013-09-27 10:28:04
A flight by foreign companies from violent unrest in Egypt threatens to drive up vacancy rates at offices and malls and prompt international investors to shift funds to sub-Saharan real estate.
The army overthrew and imprisoned President Mohamed Morsi in July and the ensuing crackdown on his Muslim Brotherhood movement has killed about 900 people. This has prompted many multinational companies to scale down their operations or pull out staff, particularly from central areas of the capital Cairo.
Weaker demand means property investors, who had been lured by Cairo's established business district, could swap what was north Africa's only viable property investment market for comparatively stable cities in sub-Saharan Africa, property experts said.
"The demand for Class A office space has almost disappeared overnight," said Ahmed Badrawi, managing director of SODIC , one of Egypt's biggest developers and behind the Eastown scheme in New Cairo, a development of offices, shops and homes twice the size of London's 97-acre Canary Wharf district. More»