Real estate developers achieved LE 700B in sales in 2023, breaking the record.
According to a new report by the Board Consulting, real estate sales in Egypt soared to over LE 700 billion in 2023, more than doubling the previous yearโs total of LE 332 billion.
The report identified East Cairo as the most in-demand location for real estate, with Al-Mostakbal City and the new government headquarters attracting buyers.
West Cairo also saw a boost in sales, with more than 70 residential projects launched in 2023 and land purchases for Sphinx City and New Zayed City.
The North Coast emerged as the โtrendiestโ destination for second homes, with high ROI and investor appeal.
The Red Sea area, including Makadi Bay, Soma Bay, and El-Gouna, developed into attractive โfirst homesโ options.
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The report attributed the surge in sales to various factors, such as global inflation, geopolitical conflicts, rising US interest rates, and increasing prices in Egypt, which prompted people to invest in real estate to preserve their wealth.
The report also ranked the top developers in 2023, with Talaat Mostafa Group (TMG) leading the pack with LE 140 billion in sales, mainly from their projects in East Cairo without brokers.
TMG expanded its reach by launching BENAN, a mega project covering 10 million sqm in Saudi Arabia, and buying a 39 percent stake in Legacy, entering the hospitality sector.
Mountain View came in second with LE 61.1 billion in sales, a 98 percent increase from 2022.
Ora and Palm Hills tied for third with LE 59.5 billion each. Ora saw a 207 percent increase from 2022, while Palm Hills saw a 129 percent increase.
City Edge ranked fourth with LE 38 billion in sales, a 100 percent increase from 2022.
Madinet Masr was close behind in fifth with LE 35 billion in sales, a 212 percent increase from 2022.
Emaar Misr had LE 30.2 billion in sales, a 9 percent decrease from 2022.
SODIC had LE 29.4 billion in sales, a 38 percent increase from 2022.
Founders had LE 27.6 billion in sales, a 35 percent increase from 2022.
New Giza had LE 26 billion in sales, a 63 percent increase from 2022.
Tatweer Misr had LE 25 billion in sales, a 213 percent increase from 2022.
Egypt, Real estate for sale
Ahmed Zaki, Managing Director of Board Consulting, explained that global turmoil and trade disruptions affected raw materials, especially steel prices, which rose to LE 55,000 per ton in the black market. Construction costs rose by an average of 80 percent (excluding finishing materials), leading to a 60 percent increase in overall construction costs.
The consultancy said these costs usually account for about 35 percent of project investments, resulting in an average 80 percent increase in selling prices.
The report stressed the importance of supporting the secondary market for the new generation and highlighted the need for a well-designed mortgage system to manage resale risks effectively.
The report also advised developers to prioritize timely construction to avoid potential consequences. It emphasized the need for innovative solutions in the rental market to address affordability challenges for younger generations. Developers should monitor consumer behavior and adapt to market changes to succeed in this dynamic industry.
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