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How the Real Estate Market in Egypt Outperforms the US in 2024

The real estate market is one of the most important sectors of any economy, as it reflects a country’s development, stability, and prosperity. In this article, we will compare the real estate market in Egypt and the US, two countries with different economic and political contexts, and see how Egypt has managed to outperform the US regarding growth, demand, and innovation in 2024.

Real estate

Growth

According to Statista Market Forecast, the real estate market in Egypt is expected to reach a value of US$1.45tn by 2024, with a compound annual growth rate (CAGR) of 8.91% from 2024 to 2028. The residential real estate sector is expected to dominate the market with a projected market volume of US$1.08tn in 2024, accounting for 74.5% of the total market value. The Egyptian real estate market has been experiencing significant development in recent years, driven by the country’s stable economic growth, government initiatives, population growth, and foreign investment.

Cairo, Real estate for sale

On the other hand, the real estate market in the US is expected to reach a value of US$4.11tn by 2024, with a CAGR of 3.27% from 2024 to 2028. The residential real estate sector is expected to dominate with a projected market volume of US$ 2.77 trillion in 2024, accounting for 67.4% of the total market value. The US real estate market has been facing challenges in recent years, such as the impact of the COVID-19 pandemic, the rising interest rates, the shortage of affordable housing, and environmental issues.

As we can see, the Egyptian real estate market is growing much faster than the US market and is expected to maintain its momentum in the coming years. The Egyptian market also has a higher share of residential real estate, which indicates a higher demand for housing and a more dynamic and diverse market.

Demand

The population is one of the main factors influencing real estate demand. Egypt has a population of about 108 million in 2024, with a growth rate of 1.8% per year. The US has a population of about 333 million in 2024, with a growth rate of 0.6% per year. The population density in Egypt is about 103 people per square kilometer, while in the US, it is about 36 people per square kilometer. This means Egypt has a higher demand for land and housing and a higher potential for urbanization and development.

Egypt, Real estate for sale

Another factor that affects the demand for real estate is the income. Egypt has a gross domestic product (GDP) per capita of about US$4,000 in 2024, with a growth rate of 5.2% per year. The US has a GDP per capita of about US$68,000 in 2024, with a growth rate of 2.1% annually.

The income inequality in Egypt is about 31.8, measured by the Gini coefficient, while it is about 41.5 in the US. This means Egypt has a lower income level but a more equal income distribution than the US. This also implies that Egypt has a larger middle class, which is the primary driver of the real estate market.

Therefore, we can conclude that Egypt has a higher demand for real estate than the US, as it has a more significant and faster-growing population, a lower and more equal income level, and a higher potential for urbanization and development.

Innovation

Economic, demographic, technological, and social factors influence the real estate market. Innovation is the key to creating value and differentiation in the real estate market, as it can improve the quality, efficiency, and sustainability of properties and services.

Egypt has been showing remarkable innovation in the real estate market, especially in the new cities and developments built across the country. For example, the New Administrative Capital (NAC) is one of the world’s largest and most ambitious projects, aiming to become the country’s main administrative and financial center and a bright and green city.

Hurghada, Real estate for sale

The NAC, which houses Egypt’s key ministries, government buildings, and foreign embassies, is set to become a model of modern urban planning with state-of-the-art infrastructure, facilities, and services. The NAC also offers a variety of residential options, from apartments and condominiums to villas and landed houses, catering to different tastes and budgets.

On the other hand, the US has been lagging in innovation in the real estate market, especially in the existing cities and neighborhoods facing aging and deterioration. The US real estate market is primarily dominated by traditional properties and services, which lack the flexibility, adaptability, and diversity that modern consumers demand. The US real estate market also lacks environmental awareness and responsibility, as it consumes a lot of energy and resources and generates a lot of waste and emissions.

Hence, we can see that Egypt has been leading the way in innovation in the real estate market, especially in the new cities and developments built with the latest technologies and standards. However, the US has been falling behind in innovation in the real estate market, especially in the existing cities and neighborhoods facing obsolescence and decay.

Conclusion

In conclusion, the real estate market in Egypt has outperformed the US in 2024 in terms of growth, demand, and innovation. The Egyptian real estate market has been growing much faster than the US market and has a higher share of residential real estate. The Egyptian real estate market also has a higher demand for real estate than the US market, as it has a more significant and faster-growing population, a lower and more equal income level, and a higher potential for urbanization and development.

Moreover, the Egyptian real estate market has been leading the way in innovation in the real estate market, especially in the new cities and developments built with the latest technologies and standards. However, the US real estate market has been facing growth, demand, and innovation challenges, as it has a slower and smaller population growth, a higher and more unequal income level, and a lower potential for urbanization and development. The US real estate market also suffers from a lack of innovation in the real estate market, especially in the existing cities and neighborhoods facing obsolescence and decay.

Therefore, we can say that the real estate market in Egypt is a dynamic and promising sector and has emerged as a lucrative investment destination. On the other hand, the real estate market in the US is a stagnant and challenging sector and has lost its competitive edge and attractiveness.


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