Egypt has one of the strongest economies in Africa. Its robust economy grew at 5.3% in 2018. The economy is expected to grow by 5.5% in 2019. This is a significant leap from the 2017 report of 4.2%. Even though the economic outlook is generally great, the real estate sector has taken a downturn.
Cost of housing is falling rapidly. In the first quarter of 2019, the real estate index fell by 11.7%. During the same period in 2018, the y-o-y growth was 18.2%. Although this is a great time for buyers, the long-term outlook is excellent for real estate developers. Egypt’s population is increasing by about 2.5million annually.
The demand for housing is estimated to be 52,000 annually. However, developers are currently only able to provide 20,000 units. This is one of the reasons why Egypt is attractive to investors. The opportunities are immense and given future projections, it is a great time to be a developer in real estate.
New Sites Developing in Egypt
The New Desert Capital
One cannot talk about new development projects in Egypt without mentioning the ambitious $58billion project. This is the biggest real estate project that the government has undertaken. The land area where this new city is being built is 170,000 fedans. Cairo was built on 50,000 fedans. This shows the sheer size of the new capital and the investment opportunities available.
It is expected that this project will be complete
in 2035. However, one of the primary investors from UAE abandoned the project.
What impact this will have on the pace of development is still unknown. The
army’s Engineering Authority and Housing Ministry are currently in charge of
The government is expected to relocate its administration functions into the New Administrative Capital. The administration will occupy about 700km2. Ministries, a diplomatic quarter, residential neighborhoods, and a financial district as some of the facilities that are to be constructed.
Buildings that are already being constructed include a hotel with a conference centre, a cathedral, and a large mosque. The business district will have 21 skyscrapers, one of them expected to be the tallest in Africa with 85 stories. 20 residential neighborhoods are also included in the list of development to be undertaken by the 17 contractors.
The Gate, Heliopolis
SIAC is the project’s main contractor. When complete, this project will be the most significant administrative, residential smart, commercial, and environmentally friendly in the middle-East. Home automation is an option available to the residents. The HVAC system is automated, allowing residents to customize music, security features, video communication and lighting. The entire roof will have orchards, food gardens, sports area, and infinity pools.
Mivida, New Cairo
This EGP 6 billion residential project expects to provide a lush environment that will bring life to this leafy suburb. Pine forest and lavender gardens will be part of the trails throughout this community. Residents will also have easy access to playgrounds, a business park, hotels, shopping centre as well as community centres.
Developers Changing the Face of Real Estate in Egypt
Cairo Office: 34/36 Mussdak Street – Dokki – Giza – Egypt
TMG is one of the leading developers with over 40 years in housing and real estate. In 2018, during the “Egypt Summit for the Best” the company was named “The Top Real Estate Developer”. Most of its development has been focused on self-sustained community complexes and residential properties in various cities.
Some of the past projects by TMG include;
- May Fair in Al Shorouk, East Cairo
- Al Rabwa in Six of October City, West Cairo
- Four Seasons, Nile Plaza in Cairo
- Four Seasons Hotel Alexandria at San Stefano
- Kempinski Nile Hotel in Downtown Cairo
Their present projects include;
- Celia in the New Administrative Capital
- Four Seasons Hotel, Madinaty project
- Extension of Four Seasons Hotel in Sharm El Sheikh
Cairo Office: Smart Village, A4 – B83 KM28, Alexandria Desert Road Abou Rawash
Palm Hills was founded in 2005. It has specialized in integrated residential, resort projects, and commercial real estate. It has worked on more than 26 projects that are at different stages of development.
The past projects include;
- Palm Hills October
- Palm Hills Alexandria
- Hacienda Bay
- Village Gate
The present projects include:
- Palm Hills New Cairo
- The Crown
- Hale Town
- Capital Gardens
Cairo Office: KM38 Cairo – Alexandria Desert Road, Sheikh Zayed City, Giza, Egypt
SODIC is a real estate company that was incorporated in 1996. It is now a public company listed in the Egypt Stock Exchange. Its headquarters is in Giza. It has between 200 and 500 employees. This company has several developments in different parts of Egypt. They include;
- SODIC East
- Spectrum Eastown
- Sky Condos by Villette
- Villette New Cairo
- The Terraces Eastown
- Kattameya Plaza
- Malaaz North Coast
- Westown Hub
- Heliopolis Development Housing
- La Plaza de Caesar
- The Polygon
Cairo Office: Yehia Zakaria St. Industrial Zone – lot 5, Sheraton Heliopolis Housing
This company was founded in 1936. It employs more than 30,000 people. Some of the projects under its umbrella include;
- City Centre Almaza (2016-2019)
- Cairo Festival City Office Park C (2015 – 2018)
- National Museum of Egyptian Civilization (2005 – 2013)
- Schlumberger Integrated Base, Egypt (2014 – 2017)
- Restoration, Development & Repair of the National Theatre (2008 – 2015)
- Smart Village Conference Centre & Think Tank ( 2003 – 2004)
- Jaz Hotel & Resort (1998 – 2007)
- Forty West, West Town (2010 – 2015)
- Oriana Villas, Phase 3
Cairo Office: 19 Abd El-Hamid Badawi St. Heliopolis, Cairo, Egypt.
ARDIC Developments was established in 1998. Since its inception, this company has developed major commercial, residential and administrative projects that have sold at a great market price.
The past projects include;
- Zizinia New Cairo
- Zizinia Rose New Cairo
- Zizinia Garden New Cairo
- Zizinia Mall El Haram
- Zizinia Flowers El Shorouk
The present project is:
- Zizinia El Mostakbal, New Cairo ( due for completion in 2020)
Cairo Office: 59 El-Moltaka El-Araby, Sheraton Heliopolis
El Batal Group has been in existence for over 30 years. Some of the developments under its flagship include:
The present projects include;
- Rock Vera Compound
- Rock Eden Compound
- Sheraton Twin Wave
- Rock Ville Compound, El Obour City
The future projects include;
- Sheraton Heliopolis, Sun Gate Complex (future project)
- Sheraton Heliopolis, Sheraton Gate Complex (future project)
Better Home is a real estate investment company that was established in 1998. This company is involved in residential, commercial, and administrative projects.
Some of the past projects are;
- Cairo Medical Centre
- Cairo Business Plaza
- CityScape Mall in 6th of October City
- Cairo Business Plaza
- Midtown Sky Mall
Some of the present projects include;
- Midtown Condo in the New Administrative Capital
- Midtown Villa
- Midtown New Capital Solo
Cairo Office: S Teseen, Cairo, Egyp
City Edge is one of the top real estate developers in Egypt. City Edge is a company that came to be through the partnership of New Urban Communities Authority (NUCA) and Housing and Development Bank. This company has developed premium multi-use projects and residential compounds. Some of the projects this company is presently involved in include;
- ETAPA in Sheikh Zayed
- ETAPA Square in Sheikh Zayed
- North Edge Towers in New Alamein
- The Gate in New Alamein
This real estate company has specialized in the development of integrated residential, resort, and commercial projects. ARCO was founded in 2005. In less than five years, this company had undertaken projects worth more than 20 billion EGP.
Some of the past projects include;
- Royal Meadows
- Dyar Park
- Meadows Park
- Le Reve
The present projects include;
- City Stars Alsahel
- The Wharf
- La Fontaine
Cairo Office: Building 290, Second Business District, off 90th Road, New Cairo, Egypt
Al-Ahly Development has more than 23 years’ experience in the construction industry. It has specialized in upscale residential houses. Some of the past projects under this company include;
- Darah Gardens
- The Square
- Katameya Residence
- Katameya Hills
- The Grand Residence
Headquarters: 65 Gameat Al Dewal A1 Arabeya St. Mohandeseen, Giza
This company was founded in 2002. It has been involved in the development of various residential properties, mixed-use malls, shopping centres, and second home projects.
Some of the projects include;
- Kazan Plaza in 6th October – to be completed in 2020
- Kenz Compound in 6th October – completed 20181