Residential Real Estate - Egypt

Egypt

The Residential Real Estate market market in Egypt is anticipated to reach a staggering value of US$1.10tn by the year 2024.
This projection indicates a significant growth potential for the country's real estate sector.
Moreover, it is expected that the market will continue to expand at an annual growth rate of 6.82% from 2024 to 2029, resulting in a market volume of US$1.53tn by the end of this period.
When compared to other countries globally, China is expected to generate the highest value in the Real Estate market, with an estimated worth of US$112.9tn by 2024.
This showcases the immense scale and importance of the Chinese real estate industry in the global context.
The demand for luxury residential properties in Egypt has been steadily increasing due to the growing interest from high-net-worth individuals.

Key regions: Europe, Brazil, France, Asia, United States

Market

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Analyst Opinion

The Residential Real Estate market in Egypt has been experiencing significant development in recent years. Customer preferences in the Egyptian Residential Real Estate market have been shifting towards modern and luxurious properties. With the growing middle class and increasing disposable income, there is a rising demand for high-quality housing options. Customers are looking for properties that offer modern amenities, such as swimming pools, gyms, and landscaped gardens. Additionally, there is a preference for properties located in gated communities that provide a sense of security and exclusivity. One of the key trends in the Egyptian Residential Real Estate market is the rise of mixed-use developments. Developers are increasingly integrating residential, commercial, and recreational spaces into a single project. This trend is driven by the desire for convenience and accessibility. Mixed-use developments offer residents the opportunity to live, work, and play in the same community, reducing the need for long commutes and providing a vibrant and dynamic living environment. Another trend in the market is the growing popularity of affordable housing options. The government has been implementing initiatives to address the housing shortage in the country, and developers have responded by constructing affordable housing projects. These developments cater to the needs of low and middle-income individuals and families, providing them with access to decent and affordable housing. Local special circumstances in Egypt have also contributed to the development of the Residential Real Estate market. The country's population is growing rapidly, leading to an increased demand for housing. Additionally, the government has implemented policies to attract foreign investors, which has resulted in a surge of foreign investment in the real estate sector. This influx of investment has stimulated the market and led to the construction of new residential projects. Underlying macroeconomic factors have also played a significant role in the development of the Residential Real Estate market in Egypt. The country's economy has been growing steadily, resulting in an increase in disposable income and purchasing power. This has fueled demand for residential properties, especially among the middle class. Additionally, low interest rates and favorable mortgage terms have made homeownership more accessible, further driving the demand for residential real estate. Overall, the Residential Real Estate market in Egypt is experiencing significant development due to changing customer preferences, the rise of mixed-use developments, the popularity of affordable housing options, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected to offer a wide range of opportunities for investors and developers.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.