Egypt Condominiums and Apartments Market - Growth, Trends, COVID-19 Impact, and Forecast (2023-2028)

The size of the Egypt Condominiums and Apartments Market is USD 8.16 billion in the current year and is anticipated to register a CAGR of over 11% during the forecast period. The market is driven by the growing housing demand. Furthermore, the market is driven by government initiatives in the housing sector.

Key Highlights

• The COVID-19 pandemic put pressure on the residential sector in the country, further resulting in slow sales due to restrictions. However, in 2021, the condominiums and apartments sales recovered and witnessed significant growth, driven by largescale city constructions in the country.
• The country's population is increasing, growing by 2.5 million people each year, resulting in rising demand for the housing sector. In addition, the government is taking various measures to meet the growing demand, such as the commencement of many mega-projects to encourage economic growth, including the enlargement of the Suez Canal and the creation of a new capital city (New Administrative Capital, New Alamein city, etc.).
• According to the Housing and Urban Communities Minister, to meet growing housing needs, the country needs to build at least 600,000 new houses every year to suppress the supply shortages. In addition, the government has invested more than USD 44 billion in housing projects for a decade.
• Moreover, in FY 2021, as per the Central Agency for Public Mobilization and Statistics (CAPMAS), the total number of housing units amounted to more than 316,027. The public and private sectors constructed 146,229 units and 169,798 units, respectively. Thus, the growing need for housing is expected to boost the condominiums and apartment projects in the country.

Egypt Condominiums and Apartments Market Trends

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.

Egypt Condominiums and Apartments Market Competitor Analysis

The top participants in the Egyptian condominiums and apartments sector are covered in this research, and the market is extremely fragmented. Some of the major players in the market include ERG Developments, ORA Developments, Newgiza, and La Vista Developments. In addition, large firms have financial resources to their advantage, whereas small businesses can compete effectively by building expertise in local markets.

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