Residential Real Estate Market in Egypt - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Residential Real Estate Market in Egypt is segmented by Type (Apartments and Condominiums and Villas and Landed Houses) and Key Cities (Zamalek, Maadi, Garden City, Heliopolis, New Cairo, Downtown, Cairo, Ismailia, Hurghada, Luxor, Mansoura, and Alexandria). For each segment, the market sizing and forecasts have been done on the basis of value (USD billion).

Market Snapshot

Residential Real Estate Market in Egypt Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >6.5 %
Residential Real Estate Market in Egypt Major Players

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Market Overview

The residential real estate market in Egypt is expected to register a CAGR of more than 6.5% during the forecast period (2022 - 2027). Initial sales have slowed, and delivery has been delayed as a result of the coronavirus, which has harmed real estate developers even more. As property sales stalled amid the coronavirus outbreak, Egypt's five largest publicly traded real estate firms reported a total earnings drop of about 31% in the second quarter of 2020. Due to the impact of the coronavirus and clients, sales in Egypt decreased by 30-40% in the first half of 2020. Egypt's real estate developers predicted that the local market would revive in 2022 and that the following year would see a major return in property demand, coinciding with the country's economic recovery from COVID-19's effects.

Egypt's home market has made a surprising comeback, boosted by the government's recent severe economic reforms, particularly the recent loosening of the country's foreign land ownership regulations. The countrywide real estate price index increased 28.3 percent (22.6 percent inflation-adjusted) in the year to Q1 2021, compared to a y-o-y decline of 30.8 percent in the same period of 2020. In an effort to boost the housing market, the president recently lifted the final limitations on foreign ownership of land and property in Egypt. The president also authorized Egypt's largest landowner, the government, to use its land for public-private partnerships. These improvements, together with fundamentally strong local demand, are now boosting the housing market, as well as the overall economy.

In Egypt, there is a significant actual demand for housing, as the country's population grows by 2.5 million people each year and one million marriages occur each year. The commencement of many mega-projects to encourage economic growth, including the enlargement of the Suez Canal and the creation of a new capital city, were among the other measures.

Scope of the Report

Residential real estate is the land that has been built for the purpose of allowing people to live there. It cannot be utilized for commercial or industrial reasons. It appears when someone purchases land designated for residential use, which becomes real property and contains a wide range of potential homes, from houses to houseboats and neighborhoods ranging from the poorest slum to the wealthiest suburban development. A complete assessment of the Residential Real Estate Market in Egypt includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments in the report. The report includes government regulations and initiatives taken and key trends in this sector. The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Residential Real Estate Market in Egypt is depicted through the profiles of active key players. The report also covers the impact of COVID – 19 on the market and the future projections.

The residential real estate market in Egypt is segmented by type (apartments and condominiums and villas and landed houses) and key cities (Zamalek, Maadi, Garden City, Heliopolis, New Cairo, Downtown, Cairo, Ismailia, Hurghada, Luxor, Mansoura, and Alexandria). For each segment, the market sizing and forecasts have been done on the basis of value (USD billion).

By Type
Apartments and Condominiums
Villas and Landed Houses
By Key Cities
Zamalek
Maadi
Garden City
Heliopolis
New Cairo
Downtown
Cairo
Ismailia
Hurghada
Luxor
Mansoura
Alexandria

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Key Market Trends

Growth of Residential Units in Cairo

In 2021, around 19,000 residential units were completed in Cairo, bringing the total residential stock in the governorates to approximately 227,000. This is a 40% increase over the previous year when only 2,500 residential units were delivered. Large mixed-use developments accounted for the majority of the residential supply completed in 2021, with some developers opting for smaller projects to control cash flows. Part of the reason for this increase could be the relaxing of COVID-19-related limitations on the construction, transportation, and logistics industries in 2021 compared to the same period the previous year.

In 2021, the President issued a government regulation prohibiting developers from selling any units until at least 30% of the project is completed. The Administrative Capital for Urban Development's decision is also believed to have enhanced project completion rates by encouraging developers to reduce project delivery times. In 2022, an estimated 29,000 apartments are expected to be constructed, with the majority of these being located to the east of Cairo. With the population of Greater Cairo expected to treble in the next few decades, developers will be in high demand for residential homes. Increased labor and construction material costs could be a difficulty for developers, resulting in project delays, higher expenses, and, in the worst-case scenario, project cancelations.

Residential Real Estate Market in Egypt Share

Urbanization Driving the Market

The growing trend of urbanization, which is supported by the government's National Strategic Plan for Urban Development 2052, which intends to double Egypt's urban area from 7% to 14%, is fueling rising investment in the real estate sector. The government is building 20 new cities under this plan, which will encompass over 235,000 hectares and house 26 million people. The government's top priority in terms of infrastructure development is the New Administrative Capital.

As the city's population grows, it hopes to reduce congestion in central Cairo and places near the Nile. As a result of the pandemic, President Trump declared in April 2020 that the transition to the new capital would be delayed until 2021. However, worldwide media reported in May 2020 that the building had begun with new protective measures in place. That month, the government announced that two residential districts would be finished by the end of 2021, with the business district following in early 2022.

For its strategic position and utilization of smart infrastructure, the new capital has already piqued investment interest. More than 300 investors, including private developers and national groups, have pledged their support for the New Administrative Capital. In 2021, Egypt will have increased the urban area to 13.7 percent of the overall territory of the Egyptian state, up from only 7% in 2014. Egypt is on track to meet its 2052 urban area objective of 14 percent of the country's total area, according to the national strategic plan's goal of doubling the Egyptian population.

Residential Real Estate Market in Egypt Analysis

Competitive Landscape

The top participants in the Egyptian residential real estate sector are covered in this research. The residential real estate market in Egypt is extremely fragmented. Large firms have financial resources to their advantage, whereas small businesses can compete effectively by building expertise in local markets. Orascom Development Egypt, Connect Homes, Emaar Misr, Avenues Real Estate, Coldwell Banker Egypt, and others are some of the main companies.

Recent Developments

September 2021: Jaggaer, a provider of cloud-based business automation technology, has signed an exclusive deal with Ora Developers, one of Egypt’s real estate developers of luxury residential, hospitality, and commercial properties around the world. As part of the agreement, Ora Developers will transform their sourcing and supplier management processes through the implementation of Jaggaer’s source-to-pay platform Jaggaer One.

December 2021: Orascom Construction PLC has approved the full acquisition of Orascom Trading, National Equipment Company, and Orascom Free Zone - Onsi Sawiris and Partners for a total cash value of USD 35 million. Once completed, Orascom Construction PLC will hold 100% of the total share capital of the three companies.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  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 Current Market Scenario

    2. 4.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 4.3 Government Initiatives and Regulatory Aspects Pertaining to the Residential Real Estate Sector

    4. 4.4 Insights into Size of Real Estate Lending and Loan to Value Trends

    5. 4.5 Insights into Interest Rate Regime for General Economy, and Real Estate Lending

    6. 4.6 Insights into Rental Yields in the Residential Real Estate Segment

    7. 4.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate

    8. 4.8 Insights into Affordable Housing Support Provided by the Government and Public-Private Partnerships

    9. 4.9 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    10. 4.10 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Porter's Five Forces Analysis

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Apartments and Condominiums

      2. 6.1.2 Villas and Landed Houses

    2. 6.2 By Key Cities

      1. 6.2.1 Zamalek

      2. 6.2.2 Maadi

      3. 6.2.3 Garden City

      4. 6.2.4 Heliopolis

      5. 6.2.5 New Cairo

      6. 6.2.6 Downtown

      7. 6.2.7 Cairo

      8. 6.2.8 Ismailia

      9. 6.2.9 Hurghada

      10. 6.2.10 Luxor

      11. 6.2.11 Mansoura

      12. 6.2.12 Alexandria

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 Orascom Development Egypt

      2. 7.2.2 Ora Developers

      3. 7.2.3 Emaar Misr

      4. 7.2.4 Avenues Real Estate

      5. 7.2.5 Coldwell Banker Egypt

      6. 7.2.6 NEW GIZA

      7. 7.2.7 Hassan Allam Properties

      8. 7.2.8 Iwan Developments

      9. 7.2.9 Wadi Degla Developments

      10. 7.2.10 La Vista

      11. 7.2.11 Connect Homes

      12. 7.2.12 Tatweer Misr

      13. 7.2.13 Byotat

      14. 7.2.14 BLU Real Estate

      15. 7.2.15 LIV Real Estate

      16. 7.2.16 RE/MAX Al Mohager

      17. 7.2.17 SODIC

      18. 7.2.18 ERA

      19. 7.2.19 Blue Rock Real Estate

      20. 7.2.20 El Shams Eiffel*

    3. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. APPENDIX

    1. 9.1 Marcroeconomic Indicators (GDP breakdown by the Sector, Contribution of Construction to Economy, etc.)

    2. 9.2 Key Production, Consumption, Exports, and Import Statistics of Construction Materials

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Frequently Asked Questions

The Egypt Residential Real Estate Market market is studied from 2018 - 2027.

The Egypt Residential Real Estate Market is growing at a CAGR of >6.5% over the next 5 years.

Orascom Development Egypt, Ora Developers, Emaar Misr, Avenues Real Estate, Coldwell Banker Egypt are the major companies operating in Egypt Residential Real Estate Market.

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