The twelfth edition of Cityscape Egypt 2023, held in Cairo late last month, hosted more than 70 exhibitors and saw an attendance of more than 40,000. The second day of Cityscape Talks offered insight into residential property market resilience in the country.
REAL ESTATE RESILIENCE
Egypt-based consulting firm, The Board Consulting, led a session outlining industry trends and statistics, sharing in-depth insights into the country’s ever-evolving real estate market in terms of market returns and growth prospects.
“The sector has proved, time and again, that it is a bulletproof industry,” said Ahmed Zaki, co-founder and managing director of The Board Consulting.
“In 2020, it was valued at EGP 206 billion…moreover, there’s a large segment of the population working in the sector, boasting around 180,000 brokers," he shared.
“We are one of the very few countries around the world whose real estate sector has not been significantly hurt by the economic fallout of the COVID-19 pandemic.”
MARKET PERFORMANCE IN H1 2023
During the knowledge-sharing session, titled “Overview of the Current Egyptian Real Estate Market Dynamics”, Zaki said that the sales volume of the top 25 developers amounted to EGP 250 billion in the first half of 2023.
This figure represents over 88 percent growth from the EGP 133 billion recorded in the same period last year, with price hikes being among the reasons behind this growth.
During the presentation, he said that top-selling developers include Talaat Moustafa Group (TMG), Ora, Palm Hills, Founders, City Edge, Tatweer Misr, Mountain View, LMD, New Giza, Saudi Egyptian Developers (SED), Emaar, SODIC, Orascom, Misr Italia, and Madinet Masr.
GROWING MARKET OF NORTH COAST
The long stretch of coastline spreading along the North Coast is expected to be home to a host of new capital-intensive complexes, offering a harmonious blend of natural beauty and modern amenities, with the city of New Alamein lying at the heart of it.
Market size-wise, according to The Board Consulting, the North Coast was the second highest selling region last year after East Cairo. So far in 2023, the North Coast market has generated EGP 117.3 billion worth of sales, Zaki said.
“With customers becoming savvier, the North Coast has become their go-to destination to invest in or buy property. It is increasingly becoming a hot opportunity for investment for real estate developers and consumers alike.
“Suffice to say, it's attracted the biggest residential investment ever recorded in the real estate sector,” he further elucidated.
Prices for single-unit properties and multi-family units have increased by 70 percent and 50 percent respectively, in some cities in the North Coast region, contributing to the growth of its entire property market.
ON-GROUND MARKETING
Ensuring that new cities are both habitable and distinctive in their character and concept is a key factor in nurturing sustainable growth in the real estate market, Zaki opined, asserting that the development of new cities should place a strong focus on offering entertainment options for residents and visitors alike.
“Developers spend 40–60 percent of their marketing budgets on billboards; this has no longer become a very effective tool of marketing.
“On-ground marketing efforts play a crucial role in enabling individuals to envision their future lifestyle and make informed decisions when purchasing a property within a specific compound.
“People are no longer interested only in real estate products, but in the concept and lifestyle behind them,” he concluded.
