Despite the rough global economic situation from which most businesses are generally suffering all over the world, the Egyptian Real Estate market seems to be quite resilient in the face such challenges so far.
The residential Real Estate market size in Egypt is -in the current year- valued at USD 16.31 billion and is forecasted to even grow by a further 11.04% in “Compound Annual Growth Rate” due to increase in residential unit demand, especially in Cairo.
In 2021 -one of the most challenging years when the COVID-19 pandemic business impact was at its highest- around 19,000 residential units were completed in Cairo resulting in a governate’s total residential stock figure of 227,000, thus marking a 40% growth Y/Y.
One of the key drivers of such growth was a government directive that prevented developers from selling units unless 30% of the project has already been completed. A directive which is believed to have instilled in consumers a sense of trust and protection.
The growth signs continued in 2022 when Wadi Degla developments launched a new residential project in New Degla, Maadi named “Club Town” which was valued at USD 61 Million. A three-phase project comprised of 550 residential units in addition to a commercial area spread over around 70 acres of land. The first phase of the project is expected to be delivered at some point between 2024 and 2026. Progress is currently ongoing on the project with the expected completion of around 1500 unit by the end of 2023.
Another key critical driver of forecasted growth for 2023 and beyond, is the ever-growing population of Egypt with the Greater Cairo population in particular, expected to double over the next 2 decades. Developers should accordingly face high demand for residential property across the entire social spectrum of the Egyptian population. Developers are already preparing for this situation as evident by the decision to increase the residential property offering in the “New Administrative Capital” over last year.