How the real estate market in Egypt is changing: demand and housing prices in 2023

General changes in the real estate market in Egypt

With the rapid changes in the global political and economic situation, the real estate market is also undergoing noticeable transformations. In this material we will analyze the current state of the real estate market in Egypt, focusing on the requests and prices for pregnant housing, as well as their recent changes. It is undeniable that both locals and foreigners are interested in Egyptian real estate, especially when it comes to popular resorts located on the Red Sea coast.

Growing interest from Russians

In the first quarter of 2022, unprecedented levels of interest among Russians were recorded, reaching49%compared to the same period of the previous year. At the same time, more and more people are not limiting themselves to short-term rentals, but intend to purchase a home in this beguiling country. The request for real estate in Egypt is driven by many factors, including:

• rise in the price of construction materials;
• population growth of2.5 million peopleAnnually;
• active construction of new residential complexes;
• infrastructure development;
• the creation of specialized economic zones.

Expert opinion

To gain a deeper understanding of the real estate market situation in Egypt, we reached out to Maria Chernikova, the director of My Real Estate. She emphasized, "Despite the variety of options available, finding a good choice is a task that requires serious effort." Over the past year, the prices of apartments and houses on the Red Sea coast have significantly increased.

Changes in housing prices

For example, a year ago, the price per square meter in the Intercontinental area was approx.7500 Egyptian pounds(which equates to approx.400 US dollars), and today it varies between10 and 11 thousand pounds. Moreover, prices for some new construction projects have risen several times since the beginning of 2022, with fluctuations in May as much as4 timesThis sharp increase in prices is also related to the decline of the Egyptian pound against the dollar.

The dynamics of the real estate market in different regions

In general, the real estate market is developing dynamically in all regions of the country. The situation is particularly active in the resort area of Makadi, while Hurghada is experiencing steady price growth in both primary and secondary markets.

Trends and preferences of consumers

On the primary market, the rise in prices is attributed to the increase in the cost of building materials, while the secondary market is also showing activity. The most interesting aspects are:

• studios;
• one-bedroom apartments;
• two-bedroom apartments.

Among the main buyers are citizens of neighboring countries, includingEuropean countries,United Kingdom,Russia,UkraineandMiddle Eastern countriesEgyptians are also showing interest in buying a "summer house on the Red Sea."

Results and conclusions

The market offers a wide range of options, but the most attractive offers quickly find their new owners. The current situation forms a high demand from the population. Against the background of all this, many analysts note that real estate in Egypt is becoming not only comfortable housing, but also a profitable financial investment, which also stimulates demand from investors. Thus, the real estate market in Egypt continues to develop dynamically, attracting the attention of both locals and foreign buyers.

Introduction

It's not worth delaying the purchase of property, as finding a decent offer for less than $20,000 will become increasingly problematic. Foreign buyers should remember that there are many local investors in the market ready to invest huge sums, measured in millions of pounds, in acquiring real estate without much hesitation.

Investing in Egyptian real estate

When talking about investments in Egyptian real estate, we cannot overlook the high profitability that rental income can provide – with proper management, it is possible to achieve an income of 10% or more per year. The current global situation creates a demand for security and the possibility of extraordinary relocation.

Previously, buying real estate was done for the purpose of vacation or as an investment, but now "reserve airfields" are becoming more and more relevant.

The attractiveness of the Egyptian real estate market

The Egyptian real estate market continues to attract clients due to relatively low housing prices compared to other countries. Additionally, the following advantages should be considered:

• Year-round tourist flow
• Available living conditions
• The magnificent Red Sea, which is a true gem of the region.

Recently, the Egyptian government has been actively directing investments into infrastructure projects across the country, creating not just residential complexes, but entire new cities.

New projects and infrastructure

The construction of a new mini-city with lagoons and necessary infrastructure facilities, including international exhibition centers and even an opera house, is planned in the Sahl Hasheesh area.

Conclusion

In conclusion of our analysis of the real estate market in Egypt, we can confidently say that the current trends indicate a significant increase in both demand and prices for housing in the country. The clear dynamics observed in the Red Sea resorts reflects not only the interest of foreign investors, but also the activity of the local population seeking to improve their living conditions.

We can see how demand from Russians, for example, has increased by a49%in recent times is a vivid example of how buyers' preferences are changing. The price situation is also impressive: if a year ago a square meter in Hurghada cost7,500 Egyptian poundsSo today its price has risen to10,000 to 11,000Various factors can influence this, among which special attention should be paid to economic conditions, infrastructural transformations, and the property owners' desire for quick capital turnover.

New trends in the market

It is interesting to note that buyers are increasingly choosing not only rental options but also purchasing property. This highlights a new investment philosophy - the need for a "backup airfield," which is becoming more relevant in the context of global instability. As Maria Chernikova points out, the market is saturated with offers, but liquid properties are disappearing from the market quickly, emphasizing the importance of making timely decisions when buying.

Legislative nuances

Compliance with legal nuances also plays an important role. Although in most cases the process of buying property in Egypt is quite simple and does not require registration, it is important to be aware of limitations, such as the difference in the form of ownership depending on the region.

Conclusions

In conclusion, we would like to emphasize that the present transformations in the Egyptian real estate market can be a great opportunity for investors. Once you understand what the current changes are related to and what steps the government is taking to improve the situation, it is worth thinking about buying. If you are looking for comfortable housing by the warm sea, consider Egypt as one of the most attractive options. After all, you now have an idea of the current state of the market, and who knows, it may be your decision to become a property owner in this stunning country that will be the beginning of a new successful chapter in your life.