What has happened? Property Finder has announced the findings of its latest Egypt Market Watch Report for Q1 2023.
Key market trends:
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Investors prefer the residential real estate market. The residential and mixed-use sector has 522 ongoing projects worth $309.9 billion. They account for about 50% of the total number of projects and about 83% of the total investments.
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Cairo is in the lead. In general, new development projects are located in 21 governorates of Egypt, with roughly 52% having surpassed the halfway mark.
Cairo is the most popular. About 44% of new projects are concentrated here. In second place is the province of Giza (33% of new projects). At the same time, Cairo attracted 59% of residential real estate investments, followed by the Giza Governorate with 15%.
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The construction sector is gaining momentum. Q1 2023 saw eight developers commence construction on nine projects across four governorates with an estimated total cost of $1 billion and is expected to increase to $15 billion in the next quarter.
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New projects are being actively launched. During Q1 2023, Egypt witnessed the delivery of 17 projects with a combined value of $1.304 billion (AED4.8 billion). This represents a 31% increase in volume and a 32% hike in value compared to Q1 2022.
Around 24% of these projects are located in Cairo with New Cairo being the focal point of development, accounting for 50% of the city’s delivered projects. The province of Giza hosts 18% of the completed projects.
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Real estate is getting more expensive. The average asking price for the sale of apartments in the first quarter of 2023 increased by 30% in annual terms, while the average asking price for villas witnessed a 25% hike.
The average rent price for apartments and villas was not far behind with a 24% increase over the same period last year.
This is mainly due to the impact of the devaluation of the Egyptian pound and the prevailing high inflation rate on the construction costs.
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The demand for real estate is growing. Buyers are rushing to buy property in an attempt to hedge against the drop in value of the local currency against the dollar.
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Popular locations for buying and renting housing in Egypt: New Cairo City, 6 of October City, Hay El Maadi, Hay Sharq, Madinaty and Nasr City, Hurghada, New Capital City, Mokattam.
Source: Construction Week
Photo by Jack Krier on Unsplash
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