May 31, 2022

Real estate market in Egypt: Statistics

What is the real estate market like in Egypt?

Let's look at a general view of the real estate market in Egypt, where those wishing to buy residential properties express in preparation to pay a premium of up to 45% to acquire a property in one of the communities that provide amenities and luxury, especially those located in the new development areas. Although the price per square meter exceeds 18 thousand pounds in such places, compared to an average of 14.5 thousand at the level of Greater Cairo, the demand for luxury housing has become a milestone for the real estate market in Egypt, and its luster is not expected to fade in the foreseeable future.

The real estate sector represents about one-fifth of the GDP of the economy in Egypt, and is witnessing a steady growth, supported by the increase in the population of two million people annually, as well as the movement of movement from the countryside to the cities at a rate of 2% annually.

These factors boost the demand for residential real estate in the real estate market in Egypt, especially the capital, Cairo, which has expanded over the past decades. Today, the residential centers in the Egyptian capital include the traditional downtown Cairo area, and in its east, New Cairo and Shorouk City, up to the new administrative capital under construction. It also includes the existing West Cairo area and the West Cairo extension area under development. The new areas are considered the largest source of the supply of housing units.

The statistics of the most important real estate consultancy companies determine the size of the real estate market in Egypt, specifically housing properties at the level of Greater Cairo at 7.1 million housing units, and it is expected to rise to 7.6 million units by 2025.

It is worth noting that 20% of the additional units are of the luxury category known as "Lux", specifically in the two areas of New Cairo to the east, especially the Fifth Settlement, and west of Cairo, where the city of 6 October and Sheikh Zayed, the number of units there is expected to rise from 70,000 currently to 170,000 within 3 years.

According to real estate statistics, the year 2021 witnessed the completion of 19,000 housing units at the level of Cairo, bringing the housing stock to 227 thousand units, with an additional 29,000 units to be delivered in 2022 concentrated in projects west and east Cairo.

The prices of the new areas reflect the high demand for them, as the average selling price per square meter according to statistics is 18,000 pounds in East Cairo, and 15.5 thousand pounds in 6 October in the west, exceeding the general average selling price at the level of Greater Cairo, which records about 14.5 thousand pounds per square meter. The percentage of the premium that buyers are willing to pay in the new areas is between 25% and 45% to obtain housing in one of the communities that provide amenities, security and luxury. The advantages of the new "public taste" extend to the availability of schools, sports clubs, shopping centers, entertainment and health care services within the residential complexes.

It is a quick and general overview based on the most important statistics in the real estate matter, but it heralds a great advancement in the real estate market in Egypt.