Market Trends of Egypt Condominiums and Apartments Industry
Apartments Construction Gaining Traction in Egypt
Apartment sales are witnessing significant growth in the country, which was driven by the growing population, urbanization, and initiatives taken by the government to provide residential units to the citizens. In addition, apartment construction is experiencing increasing investments to meet the growing demand. Moreover, Qatar and Egypt have planned to build 3,500 apartments in the Gaza Strip by mid-2023, which lies on the border between the two countries. This project consists of three residential blocks with high-rise buildings and will be located on the Egypt border. Under this project, nearly 73 residential buildings will be built, including 220 housing units.
Meanwhile, in 2021, the new city, the New Administrative Capital (NAC), was driving the residential construction in the country. The second phase of Park Lane includes 170 furnished, fully serviced apartments. In addition, El-Attal Holding invested more than USD 400 million on three residential projects in the New Administrative Capital. Under this investment, nearly 1,100 residential units will be completed in three phases. However, the residential apartment in New Cairo had the smallest minimum average size among the four major cities in the country. In 2022, the minimum average area of residential apartments in the city was 94.9 square meters, while the maximum size averaged 214.5 square meters.
Increasing Investments in the Residential Sector
According to the Middle East News Agency (MENA), Egypt's real estate is gaining traction amongst foreign investors as a cost-effective destination. In addition, the growing infrastructure developments, such as 20 new cities, and the development of 23 existing ones including the New Administrative Capital (NAC), New Alamein city, and New Mansoura city offer potential investors with large-scale opportunities.
Meanwhile, the New Administrative Capital (NAC) is witnessing lucrative growth in investments from various developers across the country. In 2022, more than USD 121 million was received from real estate developers. In addition, Anchor Development, an Egyptian company planned a project across 10,815 meters and is part of a two-year investment plan amounting to nearly USD 400 million.
Moreover, in November 2022, an Egyptian company planned to invest more than USD 1.2 billion in real estate projects over the next three years. Under this investment, the company will develop nearly 140 acres of land in New Sheikh Zayed at a total investment of more than USD 450 million. In phase 1 of this project, 70 residential units will be developed on 50 acres of land, which includes villas, apartments, and commercial units.
However, residential units in the New Administrative Capital in Egypt have the highest starting price in the investor's area. In 2022, the average residential unit price amounted to more than USD 1,000 per square meter.
