The real estate market is full of changes that affect the prices, the behavior of buyers or renters, the flow of investments, and most importantly our decisions.
When seeking insights about the market, one may acquire preliminary information from magazines or through informal channels such as friends. Nevertheless, decision-making necessitates reliance on evidence and data-driven analysis.
This is where Market Watch report by Property Finder emerges as a reliable resource. It brings you a full analysis and insights about Egypt’s market in Q1 2023, according to our data.
Highlights
Find below the highlights of the market during the first quarter of 2023.
- Egypt witnessed a rising demand for property ownership, driven by currency devaluation and construction costs.
- The residential and mixed-use real estate sector recorded 522 ongoing projects worth USD 309.9 billion
- 17 projects with a combined value of USD 1.304 billion were delivered in Q1 2023
- According to Property Finder’s findings for Q1 2023.
Investments Inflow in Property Development.
There are major investments that are taking place in the market, which reflect how the property sector is still developing. This is according to Property Finder’s data; find below the detailed insights.
- The residential and mixed-use real estate sector recorded 522 ongoing projects worth USD 309.9 billion.
- The ongoing real estate projects in Egypt across 21 governorates; not just that, they have reached advanced stages of development, with roughly 52% halfway through.
- There are key investment destinations in the country like Cairo and Gize. Each has attracted residential real estate investments with varying percentages.
- Cairo: 59%
- Giza: 15%
- Q1 2023 saw eight developers starting construction on 9 projects in 4 different cities with an estimated total cost of USD 1 billion; it’s expected to increase to 15 projects in the next quarter.
- The majority (44%) of the new projects are located in Cairo, while Giza is home to 33%, mainly in New Zayed City.
- During Q1 2023, Egypt witnessed the delivery of 17 projects with a combined value of USD 1,304 million. This represents a 31% increase in terms of volume and a 32% hike in value compared to Q1 2022.
Around 24% of these projects are located in Cairo, with New Cairo being the focal point of development; this is because it has 50% of the city’s delivered projects and contributes an impressive 92% to their total value.
- Giza Governorate is home to 18% of the delivered projects with a total value of USD 108.5 million.
The Delivered Projects by the Top Real Estate Developers in Q1 2023
- Palm Hills Developments (PHD): It’s a prominent developer who brought to the market the Palm Hills-Fera New Cairo project at the cost of USD 640 million.
- Cairo Investment and Real Estate Development (CIRA): They invested approximately USD 200 million in the newly delivered Katameya Dunes Compound in New Cairo.
- SODIC: The well-known developer played a significant role in Q1 2023, completing USD 44.5 million worth of projects in phase 2 of The Estates compound in Sheikh Zayed City.
Property Ownership Is on the Rise
The average asking price for apartments in Q1 2023 increased by 30% compared to Q1 2022, while the average asking price for villas witnessed a rise of 25%.
Besides, the average rental cost for both apartments and villas saw a significant surge of 24% compared to the corresponding period of the previous year.
Here are some reasons behind these changes in the market:
- This increase can be attributed to the impact of the devaluation of the Egyptian pound and the prevailing high inflation rate on the construction costs in the real estate sector.
- Developers also experienced changes in profitability.
- Also, the rush of buyers to buy properties in an attempt to avoid being negatively affected by the drop in value of the local currency against the dollar.
High-in-Demand Areas for Rent and Sale
The following table includes the top options for owning or renting an apartment or villa in Egypt.
| Apartments for Rent | Villas for Rent | Apartments for Sale | Villas for Sale |
| New Cairo City | 6 of October City | New Cairo City | 6 of October City |
| 6 of October City | Hay El Maadi | 6 of October City | Hurghada |
| Hay El Maadi | Madinaty | Hay El Maadi | Madinaty |
| Madinaty | Mokattam | Hay Sharq | New Cairo City |
| Nasr City | New Cairo City | Nasr City | New Capital City |
Property Sale Prices in Egypt
The table below shows the average asking prices for apartments in Egypt in Q1, 2023:
| Areas | One Bedroom | Two Bedrooms | Three Bedrooms |
| New Cairo City | EGP 1,950,000 | EGP 2,450,000 | EGP 3,000,000 |
| 6th of October City | EGP 1,050,000 | EGP 1,320,000 | EGP 2,000,000 |
| Hay El Maadi | EGP 792,000 | EGP 1,700,000 | EGP 3,087,500 |
| Hay Sharq | EGP 1,435,000 | EGP 1,700,000 | EGP 3,250,000 |
| Nasr City | EGP 1,040,000 | EGP 1,200,000 | EGP 1,950,000 |
Villas
The table below shows the average asking prices for villas in Egypt in Q1, 2023:
| Areas | Three Bedroom | Four Bedrooms | Five Bedrooms |
| 6th of October City | EGP 5,554,500 | EGP 7,800,000 | EGP 10,500,000 |
| Hurghada | EGP 7,000,000 | EGP 11,000,000 | EGP 11,730,000 |
| Madinaty | EGP 8,000,000 | EGP 13,000,000 | EGP 18,750,000 |
| New Cairo City | EGP 8,000,000 | EGP 10,000,000 | EGP 13,500,000 |
| New Capital City | EGP 6,000,000 | EGP 9,500,000 | EGP 12,500,000 |
Property Rental Prices in Egypt
The table below shows the average rental prices for apartments in Egypt in Q1 2023:
| Areas | One Bedroom | Two Bedrooms | Three Bedrooms |
| New Cairo City | EGP 11,000 | EGP 13,000 | EGP 16,000 |
| 6 of October City | EGP 8,000 | EGP 9,000 | EGP 12,500 |
| Hay El Maadi | EGP 6,500 | EGP 10,000 | EGP 13,000 |
| Madinaty | EGP 9,000 | EGP 11,000 | EGP 14,000 |
| Nasr City | EGP 6,500 | EGP 7,000 | EGP 12,000 |
The table below shows the average rental prices for villas in Egypt in Q1 2023:
| Areas | Three Bedroom | Four Bedrooms | Five Bedrooms |
| 6 of October City | EGP 35,000 | EGP 45,000 | EGP 55,000 |
| Hay El Maadi | EGP 52,000 | EGP 60,000 | EGP 80,000 |
| Madinaty | EGP 27,000 | EGP 40,000 | EGP 60,000 |
| Mokattam | EGP 65,000 | EGP 60,000 | EGP 65,000 |
| New Cairo City | EGP 40,000 | EGP 60,000 | EGP 80,000 |
Supporting these data, here are some insights from Nervein Magdy, Country Manager of Property Finder Egypt, “In Q1 2023, real estate in Egypt was marked by growing investments led by a rise in ownership and property developments.
As the property landscape continues to evolve, we see fertile ground for the growth of PropTech, enabling smoother home search journeys and giving home seekers more integrated solutions to get living the life they deserve.”
When it comes to renting, buying, or even investing, your decision should surely be data-driven; that’s why Property Finder is bringing you this insightful report.
The full version of the detailed Property Finder Egypt Market Watch Report for Q1 2023 is available. Download now!
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