The statistics of the real estate market in Egypt in the last few years
The real estate market in Egypt is projected to increase at a compound annual growth rate (CAGR) of 10.96% from 2024 to 2029, from an anticipated USD 20.02 billion in 2024 to USD 33.67 billion.
The demand for the real estate market in Egypt is rising in Egypt’s major cities, particularly Cairo. Other important industry drivers are planned projects and government initiatives.
The global pandemic has created a challenging economic environment, yet all major Egyptian real estate markets in Egypt could expand or stay the same in 2021 The market for residential real estate in Cairo has grown the fastest over the past year, with rentals rising by as much as 8% yearly in some locations.
Residential Boom in Cairo: 40% Surge in real estate market in Egypt
After completing almost 19,000 residential units in Cairo , the governorate’s total residential stock reached about 227,000 Compared to the prior year when just 2,500 residential units were supplied, there has been a 40% increase. Large mixed-use projects will make up most of the residential supply when finished in 2021; some developers, however, may choose to work on smaller projects to control cash flows. In 2021, a government order was issued that forbade developers from selling any units until at least thirty percent of the project was finished.
Accelerated Development: Cairo’s Residential Landscape Grows Amidst Population Surge
Due to the Administrative Capital for Urban Development’s encouragement of developers to reduce delivery times, the project completion rate has likely increased. Anticipating the future, it was projected that 29,000 units would be finished in 2022, the majority of which would be found east of Cairo. There will be a strong demand for residential properties from developers since the population of Greater Cairo is predicted to quadruple over the next twenty years. One area that has seen a notable increase in the availability of residential property in the past year is the New Administrative Capital (NAC).
Trends in Residential Real Estate Market in Egypt
One of the most popular investment sectors in the real estate market in Egypt as per the Ministry of Planning and International Cooperation, the growth rates of properties in 2021 exceeded fifteen percent. The unpredictability and volatility of local and international economic difficulties have helped the industry, but these overarching patterns must offer a comprehensive view of demand. Because they only reflect the formal market, which caters to a tiny segment of society, they only offer a partial view. Although there seems to be a need, the affordability problem is worsening due to unit costs. Due to the nation’s annual 2.5 million population growth and one million marriages, housing will continue to be in high demand. Economic growth is stimulated by the construction of various megaprojects, such as the expansion of special economic zones.
Thriving Amid Strategic Initiatives and Strong Local Demand
The construction of the Suez Canal, New Al Alamein City, and Mostakbal City are further initiatives to promote economic expansion. For instance, the land’s present permission for public-private partnerships, along with the underlying strength of local demand, will support the real estate market in Egypt. Finally, Egypt has a large nucleus of local investors, which ensures a demand that benefits developers in the long run, despite the trend of the economy toward floating or the flexibility of the exchange rate of the local currency, there are more opportunities in Egypt to buy or invest in real estate due to the facilities provided by real estate developers and banks that provide loans and repayment facilities for those wishing to buy the real estate market in Egypt.
The following are the key developments for the real estate market in Egypt 2024:
- Social Housing Projects:
Across the real estate market in Egypt, there is a noticeable shift toward social housing options that promote affordability. To address the needs of a larger population, social housing efforts are highlighted by both government programs and commercial developers. Affordable housing has become a growing priority for developers as they realize the need for accessible solutions.
- An increasing number of people are interested in sustainability:
As developers of the real estate market in Egypt incorporate sustainable features and technologies into their projects, green initiatives and eco-friendly practices have become more popular. Properties with integrated green technologies and sustainable design elements are attracting more attention from investors and buyers.
- Technological integration:
With platforms enabling online transactions, virtual tours, and property searches, technology solutions are beginning to take center stage in the industry. Smart houses and digital property management systems are two examples of how technology is being adopted in the real estate market in Egypt more frequently. To add appeal to their projects, developers are incorporating technology-based facilities.
Summary of the vision of the real estate market in Egypt
Discover the dynamic landscape of the real estate market in Egypt, which is poised for significant growth with an expected CAGR of 10.96% from 2024 to 3020, reaching USD 33.67 billion. With the boom in residential projects, particularly in Cairo and the New Administrative Capital, along with government initiatives and private investments, the market presents promising opportunities amid the challenges posed by the global pandemic and affordability in light of the recent floating of the Egyptian pound.
