4 things will interest you about the Egyptian real estate market

Amal Ali 26 May 2022

Undoubtedly, the real estate sector plays a huge role in supporting the stability of the economy in all countries, and it is an undeniable strong factor in providing investments and job opportunities in the country. Especially in countries that aim to carry out major development movements to raise the capacity of their economy to keep pace with the economies of major countries. Egypt is one of these countries that seek greatly to support the internal economy of the country in all ways.

Egypt is one of the countries which is witnessing a clear annual increase in population. As a result, the age group under 35 years has increased. This increase in the population is a challenge for the state, as it requires the provision of a group of real estate projects to provide housing units, educational buildings, and places of entertainment and retail.

Egypt, represented by the government and the various sectors of the country, is interested in pushing and supporting the movement of real estate construction. This comes as part of President Abdel Fattah El-Sisi’s vision for Egypt 2030. Egypt’s Vision 2030 includes a set of goals, the most important of which is working to improve the quality of life of the Egyptian citizen and improve their standard of living. In addition, the vision includes working to build a strong, competitive, and diversified Egyptian economy.

The real estate field is one of the biggest fields through which the vision can be achieved, as the real estate sector provides a wide scope to provide investment opportunities either internal or foreign, in addition to providing many job opportunities in the Egyptian market. In this article, we will take you on a tour of the real estate development and investment sectors in Egypt.

You can also browse a set of articles regarding the real estate market in Egypt through our website

Real estate development and Real estate investment

Real estate development is often confused with real estate investment. Of course, both concepts depend on each other, but each one carries a difference from the other. Real estate development is the sector concerned with searching for ideas and plans for development projects, then developing a plan to implement them, and then starting to implement them, whether through the same real estate development company or by outsourcing to other companies to implement them. Real estate development includes searching for lands to implement projects on or working on restructuring and developing dilapidated or old real estate buildings to become suitable for investment later.

Real estate investment, is a sector that focuses mainly on making a profit and increasing the financial return. Thus, real estate investment is limited to buying and selling and establishing investment projects only. The real estate investor seeks to spend appropriate capital to achieve material returns without interfering in the real estate development process. The investment is often in a plot of land or real estate for a specific period to buy and sell and then moving to invest in other units or real estate.

You may also be interested to read about real estate investment in the new capital.

Urban expansion and new cities

As a result of the increase in population growth rates, the demand for real estate is constantly increasing. As a result, it was natural for the country to develop a plan for urban expansion to reduce overcrowding in governorates such as Cairo and Giza and to distribute this pressure on a new group of cities.

The movement toward building and establishing new cities is not a recent matter, as Egypt began working on new city projects in the seventies. The current stage is the fourth generation of new cities. Certainly, there must be a set of basic factors to ensure the success of these national projects, including that each city is integrated by itself and includes the required diversity in real estate among residential units and service facilities such as hospitals and shops, in addition to places of entertainment, also, the vision of sustainability must be taken into account to increase the green area within the city. It is considered one of the most important objectives of Egypt's Vision 2030 to strive to preserve the environment through the application of resource rationalization methods and environmental sustainability systems. As a result, we find that the majority of new residential projects are concerned that the green spaces are larger than the building spaces.

The urban expansion project includes all Egyptian regions. We find that it is implemented in the delta region, such as the new city of Mansoura, or the coastal region, such as the new city of Alamein, and certainly the vicinity of the city of Cairo. It comes on top of the list of new cities in the vicinity of Cairo, the New Administrative Capital. One of the biggest reasons that contributed to the congestion of the city of Cairo is the presence of all government institutions and ministries, which contributed to an increase in the number of people in Cairo by about 20 million people. Therefore, all government departments, ministries' headquarters, and administrative buildings needed to be moved to the new capital.

As for the industrial cities, the Tarboul Industrial City project is one of the most important of these projects. Tarbell Industrial City is being established on an area of 109 million square meters, which is a very large area. The vision of the city of Tarboul aims to be the first industrial city in Egypt that uses the latest technologies to be a smart, environmentally friendly, and livable city. The aim of the city of Tarbell is not only to build factories and contribute to the development of the industrial movement in Egypt but also to provide residential areas with the highest specifications.

For more details about Tarboul Industrial City, you can read this guide on Everything you need to know about Tarboul Industrial City

The most important developers in the Egyptian real estate market

It was difficult to implement this vision and carry out all these real estate projects without cooperation between the government sector and the private sector. That is why we hear daily about new real estate development companies entering the Egyptian market and launching new projects. The Egyptian government also provides support and many facilities to real estate developers, believing in the importance and the impact of this sector on the entire Egyptian market.

Surely you have heard about the names of these real estate development companies, as most of them have presented very successful and reputable projects in the Egyptian real estate market. Below we show you a group of the most famous real estate developers:

Mimar Al Morshedy Real Estate Development Company
Orascom Developments
Palm Hills Developments
Mountain View Real Estate Development and Investment Company
Sodic Developments
Emaar Misr

The most important projects in the Egyptian real estate market

The Egyptian real estate market has recently witnessed the launch of many real estate projects, which vary between residential projects, coastal projects, and commercial and administrative projects. Investing in real estate units, whether housing units or otherwise, is one of the safest investment methods at the current time. In light of the difficulties faced by global markets, including the Egyptian market, such as the devaluation of the currency against the dollar and the decisions of flotation, the real estate sector has proven its ability to remain stable and overcome crises. On the contrary, the real estate market in Egypt is witnessing an increase in the demand for investment in real estate units, which makes the prices increase. Here we will take you on a tour of the latest real estate projects in the Egyptian market

Residential projects

The main objective of implementing residential projects is to provide housing units according to the highest standards and specifications while ensuring that every citizen benefits from a fair division of facilities, services, and green areas. On its part, the government implements housing projects at economic prices to permanently get rid of the phenomenon of slums. On the other hand, real estate development companies are implementing housing projects that suit all segments of society.

If you are thinking about owning your dream home, you can read this guide 5 tips to consider before buying your home

Commercial and administrative projects

A set of basic factors must be available in the Egyptian market to attract foreign investment. One of the most important of these factors is that the Egyptian real estate market has a range of projects that provide offices and administrative units in addition to commercial buildings. The goal of any investor is to provide his services and easily invest his money without going through long stages of searching for headquarters that suit his business. The Egyptian market is witnessing the launch of many investment real estate projects that offer a distinguished set of services. These projects vary from commercial projects such as malls to administrative projects such as administrative office buildings and medical projects that provide clinics and units for medical services.

Coastal projects

It is not possible to deny the essential role that coastal cities play in attracting tourism and investment, whether it is the internal tourism that Egyptians spend their vacations on inside Egypt or the attraction of foreign tourism through the promotion of Egyptian beaches. Real estate development companies are keen to present very attractive resorts and coastal projects that reflect the beauty of the Egyptian beaches and enhance them by offering a luxurious and integrated set of services. You will find one of the projects that attract you, whether on the shore of the Mediterranean coast with its white sand and high waves, or the Red Sea with all the landscapes that are available on it.

If you are confused in choosing which coastal destination do you prefer, we can help you Read this article North Coast or Sokhna Make the decision and invest in your second home

In the end, if you are interested in expanding your investment or even looking to multiply your income sources, we advise you to consider the real estate sector. You can always find out the latest real estate news through our website. You can also follow up on the latest projects that are being launched. And if you are looking for free real estate consultation, you can contact us directly on 01003366453.