Cairo Facing Possible Future of American-Style Suburban Sprawl

Real estate investment is expected to rise sharply in the greater Cairo region. Some fear this will bring about American-style suburban sprawl.

1 minute read

July 31, 2010, 9:00 AM PDT

By Nate Berg


This article from Global Real Estate Monitor looks at the Cairo market and where its expected to head.

"Annual population growth of 2 percent and annual urbanization rate of 1.8 percent are fueling urban housing demand, according to Abdel-Baki. Currently, there is an annual gap of 150,000 housing units per year, with a carried over deficiency of 3 million housing units – 2 million to fulfill needs of the growing population and 1 million to replace depleted units, she notes.

In recent years, the housing market in Greater Cairo has been constrained by relatively low affordability. As a result, less than 10 percent of households have moved over the last five years. 'This low residential mobility reflects the overproduction of expensive units and the distortions caused by rent control,' Abdel-Baki explains. 'The mobility rate is expected to increase in coming years due to the introduction of new mortgage laws and the increasing supply of more affordable units.'"

Thanks to ArchNewsNow

Saturday, July 31, 2010 in Global Real Estate Monitor

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