Egypt's real estate market has seen a strong rise in sales in the first half of 2023. According to a recent report by The Board Consulting, the top 10 developers reported a total of EGP 168 billion in sales, marking an impressive 88% increase compared to the previous year. This growth is at large down to the devaluation of the Egyptian pound against the US dollar, making real estate an appealing investment option for Egyptians.
A SECURE INVESTMENT AMID ECONOMIC UNCERTAINTY
Real estate is increasingly viewed as a secure investment to shield savings from inflation and currency devaluation. This sentiment has gained traction, particularly with the attractiveness of the North Coast as a prime real estate investment destination. So, investors and the Egyptian population are seeking large returns on their investments.
THE TOP DEVELOPERS AND THEIR SUCCESS
Talaat Moustafa Group (TMG) led the pack with EGP 51 billion in sales during the first half of the year. Following closely, Ora, led by Naguib Sawiris, maintained its second-place position with total sales of EGP 25 billion. Palm Hills secured the third spot with EGP 17 billion, focusing on West Cairo projects and new phases in Badya projects. Founders, a joint venture between Ahly Sabbour and Hyde Park, came forth with EGP 13.4 billion, offering ready-to-deliver units at competitive prices. City Edge, driven by "ready to deliver" units in the New Administrative Capital and New Cairo, contributed EGP 13.3 billion.
Other significant contributors included Tatweer with EGP 12 billion, Mountain View with EGP 9.6 billion, Landmark for Real Estate with EGP 9.3 billion, SODIC with EGP 9.2 billion, and NEWGIZA with EGP 9 billion.
NORTH COAST'S RISING PROMINENCE
Egypt's North Coast has emerged as the favoured destination for real estate investment. Offering a diverse array of projects, from beachfront properties to golf courses and ski resorts, the North Coast has become an attractive option for investors. This trend is further supported by the favourable exchange rate, making real estate investment even more affordable for Egyptians.
CHALLENGES AND OPPORTUNITIES
Despite economic difficulties, developers have continued to launch projects in Egypt’s North Coast. The report also revealed that increased construction material costs have caused price increases of 25% to 50% on new launches. So this has prompted a rush among buyers to secure units before further price increases. Furthermore, the expansion to the GCC and Saudi Arabia is a recurring theme on many developers' agendas.
BEYOND THE TOP 10 DEVELOPERS
Several other developers have also demonstrated noteworthy performance. Emaar achieved total sales of EGP 8.85 billion, notably driven by the launch of its "Soul" project in the North Coast. Saudi Egyptian Developers (SED) achieved EGP 8.8 billion in sales, primarily due to its "Marina M8" project. Orascom achieved nearly EGP 7.7 billion in sales, with projects in West Cairo and the Red Sea leading the way.
Despite economic fluctuations, Egypt's real estate market continues to thrive, driven by a combination of factors including favourable exchange rates, strong demand, and innovative project launches. The North Coast's attractiveness and the developers' strategic initiatives ensure a promising future for Egypt's real estate sector.
