Commercial Real Estate Market in Egypt - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Commercial Real Estate Market in Egypt is segmented by Type (Offices, Retail, Industrial and Logistics, Hospitality, and Multi-family) and Key Cities (Cairo, Alexandria, Giza, Port Said, and the Rest of Egypt). The report offers market size and forecasts for the commercial real estate market in Egypt in value (USD billion).

Egypt Commercial Real Estate Industry Overview

Egypt Commercial Real Estate Market Summary
Study Period: 2017-2027
CAGR: 5 %

Major Players

Egypt Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Need a report that reflects how COVID-19 has impacted this market and its growth?

Egypt Commercial Real Estate Market Analysis

Egypt's commercial real estate market is expected to record a CAGR of approximately 5% during the forecast period. As the Egyptian economy experienced a slowdown because of the COVID-19 pandemic, several factors combined to create a stable outlook for its traditionally resilient real estate sector. The negative impacts on the retail are obvious in the short term, but the longer-term impacts are less obvious. It is conceivable that after the pandemic runs its course, the retail sector will snap back, and the effect on future retail and entertainment-related development will be minor in the long run.

The Egyptian government announced a series of widely welcomed economic measures to help protect the economy against the negative repercussions of the COVID-19 pandemic. The Central Bank of Egypt (CBE) launched an economic package worth more than USD 4 billion to fund a comprehensive COVID-19 pandemic strategy, USD 1.5 billion to fund real estate development for the middle-income group through banks, and EGP 20 billion from the Central Bank to fund the stock market.

Egypt Commercial Real Estate Industry Segments

Commercial real estate is a property that has the potential to generate profit through capital gain or rental income. The commercial real estate market in Egypt is segmented on the basis of type (Offices, Retail, Industrial and Logistics, Hospitality, and Multi-family) and key cities (Cairo, Alexandria, Giza, Port Said, and the Rest of Egypt). The report offers market size and forecasts for Egypt's commercial real estate market in value (USD billion).

By Type
Offices
Retail
Industrial and Logistics
Multi-family
Hospitality
By Key Cities
Cairo
Alexandria
Giza
Port Said
Rest of Egypt

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Egypt Commercial Real Estate Market Trends

This section covers the major market trends shaping the Egypt Commercial Real Estate Market according to our research experts:

Rise in Demand for Office Spaces Across Greater Cairo

Cairo is the acknowledged financial and business center of Egypt. However, it does not have a clearly defined Central Business District (CBD) compared to other international cities. Grade, A office space available for lease within Greater Cairo is located on major commercial arteries such as 90th Street, which also holds a significant proportion of Cairo’s Grade B office stock. Business parks offering prime office space are mainly concentrated within western and eastern Cairo.

Demand for office space is directed toward both the eastern and western parts of Cairo. New Cairo is a preferred destination, providing corporate tenants with the better build quality, parking provision, and proximity to the New Administrative Capital and the airport. 6th October City, another preferred office destination, has also witnessed the development of quality business parks that have successfully attracted tenants looking to move out from the traditional CBD/downtown Cairo into less congested areas. However, 6th of October in 2021 City does not benefit from proximity to the airport or the New Administrative Capital compared to New Cairo. Cairo’s formal office market is driven by rental as opposed to sales. The average rental rates of office space in key areas within Greater Cairo range between USD 200 per sq. m. and USD 335 per sq. m. per annum.

Egypt Commercial Real Estate Market: Office Demand and Supply in Greater Cairo From 2016 to 2021

Increase in Hotel Real Estate Across Key Cities in Egypt

Egypt’s travel and tourism sector’s contribution to the nation’s GDP grew from USD 32 billion (8.8%) in 2019 to USD 14.4 billion (3.8%) just 12 months later, in 2020. The year of damaging travel restrictions globally, which brought most international travel to a grinding halt, resulted in the loss of 844,000 travel and tourism jobs across the country.

With more open archaeological sites than any other city in Egypt, Luxor witnessed discoveries that made headlines around the world in recent years. These include the 2019 retrieval of 30 pristine wood coffins dating back 3,000 years at El-Assasif cemetery, the site of burials from several ancient Egyptian dynasties on the west bank of the Nile River. The inauguration ceremony for the Avenue of Sphinxes, which reportedly saw Luxor hotels fully booked for days, was the second such glitzy event in 2021-22.

Another event keenly anticipated is the opening of the Grand Egyptian Museum (GEM), so far slated for 2022, after repeated postponements. Located near the Giza Pyramids, the GEM is set to be Egypt’s most iconic museum, spanning 168,000 square meters, almost triple the size of the Louvre in Paris.

Egypt Commercial Real Estate Market: Number of tourist arrivals, In Millions, Egypt, 2016-2021

Egypt Commercial Real Estate Market Competitor Analysis

The commercial real estate market in Egypt is fragmented, with a lot of companies in the construction industry. Developers are trying to bring new, lower-cost products to meet current demand. Evolving technological advancements such as new proptech solutions are driving the market with increased transactions and better management of real estate assets. Some major players in the Egyptian commercial real estate market are Amer Group, Orascom Construction PLC, Palm Hills Developments, The Arab Contractors, and Talaat Moustafa Group.

Egypt Commercial Real Estate Market Top Players

  1. Amer Group

  2. Orascom Construction PLC

  3. Palm Hills Developments

  4. The Arab Contractors

  5. Talaat Moustafa Group

*Disclaimer: Major Players sorted in no particular order

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Egypt Commercial Real Estate Market Recent Developments

September 2022: Egyptian construction company Rowad Modern Engineering was awarded a 417.5-million-Egyptian-pound (USD 22 million) construction contract to build a new factory by Egyptian International Pharmaceutical Industries (EIPICO) over an area of 10,500 square meters in 10th of Ramadan City. EIPICO is investing 2 billion pounds (USD 103 million) in EIPICO 3 plant, which will be the first and largest biologicals and biosimilar alternatives and medicines manufacturing plant in Egypt and the Middle East.

January 2022: Hassan Allam Holding announced that its subsidiary, Hassan Allam Technologies, in a joint venture with Advanced Computer Technology (ACT), was awarded a project for ICT System Integration for the New Alamein Towers in New Alamein City’s residential, administrative, and commercial towers. The project will see complete end-to-end system integration comprising more than 15 different systems. The scope of work will include engineering, supply, installation, testing, commissioning, and handing over light current and electronic security systems. The technology package will serve the four high-rise towers, spanning a total built-up area of 342,000 sq. m.

Egypt Commercial Real Estate Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Report

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Insights into Existing and Upcoming Projects

    3. 4.3 Insights into Interest Rate Regime for General Economy, and Real Estate Lending

    4. 4.4 Insights into Rental Yields in Commercial Real Estate Segment

    5. 4.5 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Broking, Social Media, Facility Management, Property Management)

    6. 4.6 Industry Value Chain/Supply Chain Analysis

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

    3. 5.3 Market Opportunities

    4. 5.4 Porter Five Forces

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers/Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION (Market Size By Value)

    1. 6.1 By Type

      1. 6.1.1 Offices

      2. 6.1.2 Retail

      3. 6.1.3 Industrial and Logistics

      4. 6.1.4 Multi-family

      5. 6.1.5 Hospitality

    2. 6.2 By Key Cities

      1. 6.2.1 Cairo

      2. 6.2.2 Alexandria

      3. 6.2.3 Giza

      4. 6.2.4 Port Said

      5. 6.2.5 Rest of Egypt

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Amer Group

      2. 7.1.2 Orascom Construction PLC

      3. 7.1.3 Palm Hills Developments

      4. 7.1.4 The Arab Contractors

      5. 7.1.5 Talaat Moustafa Group

      6. 7.1.6 Secon Egypt

      7. 7.1.7 Dorra Group

      8. 7.1.8 Emaar Properties

      9. 7.1.9 Hassan Allam Holding

      10. 7.1.10 Rowad Modern Engineering*

    2. *List Not Exhaustive
  8. 8. Appendix

**Subject to Availability
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Egypt Commercial Real Estate Market Research FAQs

The Egypt Commercial Real Estate Market market is studied from 2017 - 2027.

The Egypt Commercial Real Estate Market is growing at a CAGR of 5% over the next 5 years.

Amer Group, Orascom Construction PLC, Palm Hills Developments, The Arab Contractors, Talaat Moustafa Group are the major companies operating in Egypt Commercial Real Estate Market.

Egypt Commercial Real Estate Industry Reports

In-depth industry statistics and market share insights of the Egypt Commercial Real Estate sector for 2020, 2021, and 2022. The Egypt Commercial Real Estate research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Egypt Commercial Real Estate report PDF.

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