Market Watch Q3 2024: Egypt Real Estate Dynamics, Trends, and Investments Prospects
∙ Egypt's real estate market has faced significant challenges, with concerns about a potential slow. However, recent developments suggest a resilient sector poised for growth. Meanwhile foreign investment from the GCC and Egyptians living abroad has provided a crucial boost, demonstrating continued demand and supporting the market's stability.
∙ The strong performance of Egypt's real estate sector is further evidenced by the impressive results achieved by several companies during the recent Cityscape exhibition. This major event, held from September 24th to 27th, showcased the market's potential and refuted claims of saturation. Multiple companies announced sales exceeding 20 billion Egyptian pounds during the exhibition alone, highlighting the ongoing demand and lucrative opportunities within the sector.
∙ Egypt's real estate sector exhibited steady growth in the first two quarters of 2024, expanding by 3.6% and 3.75%, respectively. The EIU forecasts a remarkable 32.76% growth in the second half of the year, primarily driven by the positive impact of the Cityscape exhibition and rising prices. Beyond 2024, the market is anticipated to maintain steady growth within its historical average.
∙ The strong performance of Egypt's real estate sector is further evidenced by the impressive results achieved by several companies during the recent Cityscape exhibition. This major event, held from September 24th to 27th, showcased the market's potential and refuted claims of saturation. Multiple companies announced sales exceeding 20 billion Egyptian pounds during the exhibition alone, highlighting the ongoing demand and lucrative opportunities within the sector.
∙ Egypt's real estate sector exhibited steady growth in the first two quarters of 2024, expanding by 3.6% and 3.75%, respectively. The EIU forecasts a remarkable 32.76% growth in the second half of the year, primarily driven by the positive impact of the Cityscape exhibition and rising prices. Beyond 2024, the market is anticipated to maintain steady growth within its historical average.
Market Prospects:
∙ Despite facing numerous challenges, Egypt’s real estate market continues to perform well, particularly in the residential and mixed-use sectors. These segments dominate the market, accounting for 679 ongoing projects valued at $517,354 million.
∙ This represents 53.8% of all projects and 75.7% of the total investment value. Notably, the number of ongoing projects increased by 25, a 3.8% increase, in Q3 2024 compared to Q2. Additionally, the total value increased by $210,172 million, a 68.4% increase.
∙ This aggressive increase in value is primarily due to the commencement of the new City of Ras El Hikma development, estimated to cost nearly $200 billion. As a result, governmental investment value has surged, now contributing to almost 58% of the total value of ongoing projects despite accounting for only 13% of the total project count. This translates to an average investment of $341 million per governmental project.
∙ This represents 53.8% of all projects and 75.7% of the total investment value. Notably, the number of ongoing projects increased by 25, a 3.8% increase, in Q3 2024 compared to Q2. Additionally, the total value increased by $210,172 million, a 68.4% increase.
∙ This aggressive increase in value is primarily due to the commencement of the new City of Ras El Hikma development, estimated to cost nearly $200 billion. As a result, governmental investment value has surged, now contributing to almost 58% of the total value of ongoing projects despite accounting for only 13% of the total project count. This translates to an average investment of $341 million per governmental project.
