Real Estate Market Sentiment in Egypt

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1 Real Estate Market Sentiment in Egypt Future Outlook from Consumers and Real Estate Investors Kailash Nagdev Managing Director - MENA

2 Y O U G O V B Y N U M B E R S 2000 YOUGOV FOUNDED IN THE UK MILLION NUMBER OF PEOPLE ON YOUGOV RESEARCH PANELS GLOBALLY NUMBER OF YEARS OPERATING IN MENA NUMBER OF OFFICES IN MENA 728,500 NUMBER OF PEOPLE ON YOUGOV S RESEARCH PANEL IN MENA, INDIA AND PAKISTAN NUMBER OF COUNTRIES IN WHICH OUR MENA PANEL OPERATES THE SIZE OF OUR RESEARCH TEAM IN MENA

3 A study of real estate market sentiment in Egypt.

4 Who did we speak to? Real Estate Investors Consumers *All respondents currently own a property or are willing to buy a property in the next year.

5 Investment outlook is positive as more aim for an aggressive strategy with high risk & high returns in the next 12 months Change in Investment Strategy In the past 12 months In the next 12 months More aggressive 35% More aggressive 49% More conservative 32% More conservative 19% Neutral/DK 33% Neutral/DK 32%

6 Real Estate is considered a promising asset class in future portfolio mix Future portfolio mix Real Estate 48 Stocks Precious Metals Currencies Fixed deposits Non-metal commodities 5 Bonds 2 Financial Goals

7 Egypt is the second most appealing country for real estate investments in the Middle East. 54% 30% UAE Egypt 6% Qatar 5% KSA

8 Overall, sentiment is positive for Egypt real estate market How do you expect the real estate to perform in the next 12 months? In the Middle East In Egypt Grow 35% Grow 43% Stabilize 31% Stabilize 21% Decline 3% Decline 12% Not sure 31% Not sure 24%

9 A moderate increase in sales and rental prices of residential properties is expected in the year to come. Sale price Rental price Increase 62% Increase 71% No change 9% No change 11% Decrease 26% Decrease 15% Don't know 3% Don't know 3% Average expected increase: 6.1% Average expected increase: 8.58%

10 Macro-economic factors remain as elements of concern when investing in real estate. 23% Top concerns whilst investing in Real Estate 15% 12% 10% 8% Currency Fluctuations Inflation State of local economy Lack of trust in brokers/ developers Rising interest rates on mortgage or loans

11 Affordable units & access to information are the most important factors encouraging consumers to invest in Egypt real estate market. Availability of affordable units 96 Access to information on property purchase process 90 Competitive interest rates on loans Support with mortgage or financing Availability of units by well-known or reputed developers Advice on relevant investments Access to reliable brokers or trusted advisors

12 Being in close proximity to healthcare & educational facilities are high on the agenda. 47% 45% 37% 33% Healthcare facilities Educational facilities Place of work/ business Public transport (bus)

13 Residential properties in the city center/ Downtown are the most sought-after. 30% Stand alone residential properties in downtown/ city center 28% Gated communities in the city that host commercial and retail spaces 27% Gated communities in the suburb that host commercial and retail spaces

14 Large apartments (3+ bedroom) are the most preferred type of property. 57% 3+ bedroom apartment 19% 2 bedroom apartment

15 Affordable housing is the biggest gap in the real estate industry. More affordable housing Lack of access to reliable brokers Availability of smart or energy efficient properties Access to data comparing properties Competitive interest rates on loans

16 Egyptian Real Estate in the past year According to

17 coverage in Egypt C O N T I N U O U S L A R G E S A M P L E S I Z E B R E A D T H O F C O V E R A G E D A I LY C O V E R A G E 4 P A N E L I S T P R O F I L I N G D E M O G R A P H I C & B E H A V I O R S E A C H D AY 5 C U S T O M T R I G G E R Q U E S T I O N S C A N B E I N S E R T E D I N T O S Y N D I C A T E D Q U E S T I O N N A I R E B R A N D S 6 H I S T O R I C A L D A T A N E A R L Y 8 Y E A R S O N M O S T B R A N D S 7 G L O B A L P L A T F O R M C O M M O N M E T H O D O L O G Y, D E L I V E R Y V I A O N L I N E R E P O R T I N G T O O L

18 How works: From our Panel, to your dashboard YouGov Panelists Online Reporting Tool BrandIndex Survey YouGov Database Easily Exportable Data

19 The Metrics in A comprehensive daily picture of brand perception and performance Media Metrics Buzz: Have you heard anything positive or negative about the brand in the last two weeks? Aided Brand Awareness: Which brands are you familiar with? Advertising Awareness: Have you seen recent advertising? Word of Mouth (WOM) Exposure Have you recently spoken about the brand? Brand Health Metrics General Impression: What is your positive or negative impression of the brand? Quality: Is the brand of good or poor quality, irrespective of price? Value: Do you believe the brand to offer good or poor value for money? Corporate Reputation: Would you be proud or embarrassed to work for this brand? Lower Funnel Metrics Purchase Consideration & Intent: Which brands are you considering purchasing? Which most likely? Customer Status: Are you a current or former customer? Satisfaction: Are you a recently satisfied or dissatisfied customer of the brand? Recommend: Would you recommend this brand to a friend or tell them to avoid it? Attention Sum of positive/ negative Buzz Index Average of Impression, Reputation, Quality, Value, Satisfaction & Recommend

20 Memaar Al Morshedy tops the list, while Amer group has seen a drop in its Index Score 25.2 Brand Index Score (Q1 2017) Brands with the highest average Buzz scores in Q1 2017, rated using YouGov BrandIndex s Buzz Score Q (January till March): Volume = 4110 show significant increase/ decrease in scores compared to Q4 2016

21 Decent uptakes by the top 3 real estate developers Impression Score (Q1 2017) Q. Impression- Do you have a POSITIVE/NEGATIVE Impression about these Real Estate Developers? Q (January till March): Volume = 4110 show significant increase/ decrease in scores compared to Q4 2016

22 Memaar Al Morshedy remains to have a positive quality, while scores of Talaat Moustafa & Amer group slightly decreased in Q Quality Score (Q1 2017) Q. Quality- Do you believe the following Real Estate Developers represent POSITIVE/NEGATIVE Quality? Q (January till March): Volume = 4110 show significant increase/ decrease in scores compared to Q4 2016

23 The Value rankings remain largely in line with Quality and Index rankings 24.6 Value Score (Q1 2017) Q. Value- Do you believe the following Real Estate Developers represent POSITIVE/NEGATIVE Value for Money? Q (January till March): Volume = 4110 show significant increase/ decrease in scores compared to Q4 2016

24 Questions? Kailash Nagdev Managing Director MENA