Market Watch Q2 2024: Egypt’s Real Estate Sector Insights and Trends

The Market Watch report for Q2 is out, and it brings you all the updates about the market during this period, from projects’ status to average prices. 

Whether you’re considering buying, renting, or investing, this overview gives you a clear picture of the market’s status.

Highlights 

• The real estate and construction sectors witnessed notable growth in Q2 2024, expanding by 3.75% and 5.47%, respectively.
  
  Both sectors collectively contributed approximately 18.3% to the total nominal GDP.

• In early 2024, Egypt and ADQ, an Abu Dhabi investment fund, made a major deal to develop the Ras el-Hekma resort, injecting $35 billion, which is a great boost to the economy.
  
  This includes $24 billion in foreign direct investment (FDI). The project is expected to draw up to $150 billion in total investments for infrastructure and real estate, greatly impacting both sectors.

• The real estate sector in Egypt has become one of the go-to options for nationals and foreign investors who want to invest in the country. This is due to various reasons. 
  • The market achieves good profits. 
  • It is one of the limited sanctuaries to save the value of the money.

Market Prospects 

• The Egyptian real estate market is characterised by a strong presence of residential and mixed-use projects. 
  
  Both sectors have a significant share of the market, with 654 ongoing projects valued at $307,182 million, representing roughly 53.9% of the total number of projects and a dominant 67.4% of the total investment value.

• The private sector remains the key driver behind Egypt’s residential real estate market. It has a share of over 68.6% of ongoing residential projects, valued at a substantial $210.674 billion. 
  
  This translates to an 87.3% share of all residential projects by the end of Q2 2024. 
  
  On the other hand, the government has a considerably smaller number of projects, which is 83 projects valued at $96.508 billion.
  
  This represents only 12.7% of the total ongoing residential projects.

Ongoing Projects

• The ongoing projects are distributed across 21 governorates in Egypt, with the private sector in 20 governorates and the government in 13 governorates. 
  
  Additionally, Aswan is the only governerate where the government solely drives development.  

Cairo 

• During Q2, Cairo remained the leader in residential real estate investment, attracting around 56.1% of the total investment and 42% of all ongoing projects. This percentage translates to 275 projects spread across 22 distinct locations. 

• In addition, the New Administrative Capital is the most popular area for new projects, including 39.6% of Cairo’s ongoing projects. New Cairo follows it with a share of  29.1%

Giza

• Giza is home to around 17.7% of all ongoing projects and attracts 16.4% of the total investments. 
• These projects are distributed across 9 distinct locations within the governorate.

• 6th of October City leads new investments, accounting for 54.8% of Giza’s total investment and 37.9% of its ongoing projects. 
• Sheikh Zayed City follows with 25.9% of Giza’s active projects.

The Egyptian real estate market exhibits a diverse range of completion rates for ongoing projects, which are as follows:

• 55.5% of these initiatives have progressed beyond the halfway point
• Approximately 10.4% with a completion rate over 90% 
• 18.5% of the projects are complete, with a percentage from 75% to 90%.

Cairo

The capital’s real estate market experienced notable growth in the ongoing projects’ construction; check it below: 

• 62.5% of its ongoing projects surpassing the halfway point in construction. 
• 10.9% with a completion rate over 90% 
•  23.3%  of the projects are complete, with a percentage from 75% to 90%.

Launched Projects 

• Although the number of newly launched real estate projects in Egypt during Q2 2024 remained at 14, the same as last year, there was a notable difference in their overall value.
• The total value of these new projects in 2024 significantly increased to $3,799 million, which is nearly double the value of projects launched in Q2 2023. 
  
  This significant increase might be attributed to high inflation rates and currency devaluation, which have likely led to a rise in raw material prices for construction.

• Cairo remained the top location for new projects, featuring 9 launches and a dominant 72.5% of the total value. 

• Giza comes in second place with the launch of 2 projects, contributing approximately 18.6% of the total value.
• During Q2 2024, the Egyptian real estate market witnessed the participation of many contractors, with 12 different companies contributing to the launching of these projects.

Delivered Projects

• In Q2 2024, the project deliveries of the private sector decreased by 55% compared to the same period last year.
• There were only 4 projects, located in Matruh, Suez, and Giza, that have been completed with a value of $393, showing a decrease of 27% from the previous year.

New Administrative Capital 

• By the end of June 2024, the New Administrative Capital (NAC) had 109 ongoing projects with a total value of approximately $70,646 million. 
  
  They represent a significant portion of investment activity, contributing 41% of the total value of ongoing projects in Cairo and 23% of all ongoing projects in Egypt.

• The private sector dominates in terms of ongoing projects in NAC, with 93 ones, representing around 85.3% of the total.

• The government sector makes up most of the total investment, about 71.3%, with a total value of $50,338 million. 
  
  This shows that the government tends to handle bigger projects in the New Administrative Capital (NAC), with an average project value of $3,146 million, while the private sector focuses on smaller residential projects averaging $218 million.

Construction progress in the New Administrative Capital (NAC) is as follows: 

• Approximately 69.7% of ongoing projects surpass the halfway point in construction.
• 11 projects with a completion rate of over 90%
• 27.5% of projects are complete, with a percentage from 75% to 90%.

Although no projects were delivered in the New Administrative Capital (NAC) during Q2 2024, completions are not anticipated until the end of the year.

This likely reflects the focus on larger-scale government projects, which typically take longer to complete than smaller developments.

High-in-Demand Areas for Rent and Sale

Property Sale Prices in Egypt

The table below shows the average asking prices for apartments in Egypt in Q2 2024:

The table below shows the average asking prices for villas in Egypt in Q2 2024:

Property Rent Prices in Egypt

The table below shows the average rental prices for apartments in Egypt in Q2 2024:

The table below shows the average rental prices for villas in Egypt in Q2 2024:

You can check the full report from below.