Increasing demand for specialised services
Dubai, United Arab Emirates: Colliers, the global commercial real estate leader released its latest white paper on Egypt’s healthcare sector.
The paper which is the 15th edition in the “Pulse Series” of research papers on healthcare in the MENA Region provides an in-debth analysis of the key factors impacting the healthcare sector in Egypt. It also encompasses market outlook and the challenges and opportunities for operators and investors.
With a national population growth rate of 2.5% per annum, the demand for physical and social infrastructure, including healthcare and education services will continue to increase across Egypt.
One of the key drivers is Egypt’s population which based on Colliers estimates, is expeceted to reach 130 million by 2030.
“ Currently, 74% of the population is under the age of 40 and it is expected to increase to 86 million by 2030. Concurrently, only 8% of the population is over the age of 60 which is also expected to increase to 13.8% by 2030. This means that the key demand will come from mother & childcare, lifestyle related diseases, geriatric care and rejuvination & antiaging” Commented Mansoor Ahmed, Director | Healthcare, Education , Development Solutions & PPP at Colliers – MENA Region.
The paper deep dives into Egypt’s healthcare market highlighting the factors impacting future demand as well as the key indicators.
“Egypt’s healthcare market is highly dominated by the public and parasatal sector, which includes specialised medical centres in the public sector and government agencies and other bodies. However, although the public sector is the largest player with 63% of total hospitals, it is highly fragmented with only 31 beds per hospital. This offers a significant opportunity for consolidation in the private sector though Merger & Acquision ” Adds Mansoor.
The paper concludes with identifying the opportunities presented to developers / operators and the funding options.
“Egypt will require approximately 38,000 new beds ( based on Egypt’s ratio of 1.3 beds /1,000 population) with an estimated investment of 8-13 billion dollars and up to 120,000 new beds ( based on MENA’s ratio of 1.9 beds /1,000 population. Most of these investments will come from the public sector. One of the key challenges to establish and operate additonal beds is qualified staff. Our analysis identified an additional 88,000 doctors, 73,000 nurses and 18,000 pharmacists will be needed to serve the additional demand by 2030, suggesting an increase in demand for medical education institutions ”. Concludes Mansoor.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 18,000 enterprising professionals work collaboratively to provide expert advice to maximise the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment.
In MENA, Colliers has provided leading advisory services through its regional offices since 1996. Colliers currently have six offices in the region located in Dubai, Abu Dhabi, Riyadh, Jeddah, Doha and Egypt.