The real-estate sector is one of the leading sectors in the Egyptian market since it plays a major role in the development of Egypt’s economy. As this sector develops, a report by Propertyfinder, Egypt’s #1 Online Real Estate Portal, sheds the light on the real estate marketing trends in Q1 2018 in comparison to Q1 2017.
Supply Vs. Demand
Since Egypt has faced a political turmoil and an inflation rate has risen sharply due to the devaluation of the Egyptian pound, peoples’ income level has decreased. Thus, the real estate market has flourished despite these challenges as it became one of the safest options for investment in Egypt. Several components have managed to devastate some of these challenges and secure investors’ faith in the market, among them, are the government’s mega projects which are designed to fulfill citizens’ different needs and requirements especially middle classes and people with low-income levels. Another element that has managed to decimate these challenges is the development of the new cities and the new residential compounds that seek to reduce the population density, redistribute the population within Greater Cairo area, and bridge the gap between the supply and demand. Thus, a growth rate has occurred concerning the number of listings on PFE’s portal as it increased by 133% in 2018 due to the high demand for properties.
Market Trends in Cairo according to property types
PFE’s report shows that a vibrant and a strong demand is prevailed towards some property types in 2018 while other properties has faced a decreasing demand, in the coming paragraphs we will discuss the numbers of each property types in details:
Real Estate Marketing Trends in 2018
The demand for apartments for sale, specifically, has increased by 4.5% in the first quarter of 2018 in comparison to the same period in 2017. The growth rate occurred due to the increased prices of properties in 2018 which have led buyers and investors to downgrade from villas, twin-houses, townhouses to apartments, according to Mohammed Hammad, Propertyfinder’s Managing Director.
Statistics indicate how inflation has affected the demand for villas as it decreased from 17.05% in 2017 to 16.89% in 2018. To emphasize this point, Hammad mentioned, “buyers and investors started to downgrade from villas to townhouse due to the increased prices.”.
On the other hand, the demand for twin-houses and townhouses has also increased to overcome duplexes in the first quarter of 2018. This indicates that investments from Gulf countries have increased since Arabs who visit Egypt on a regular basis are more likely to invest in properties that are like their homes in terms of luxury and spaciousness.
However, the currency devaluation has highly affected the demand on chalets as it decreased by 3.4% in 2018. This change might be contributed to the high need for residential properties in Egypt since chalets are highly demanded by elite classes and expat investors who were the first to benefit from the devaluation. Those are more likely to invest in leisure and tourist destinations besides the residential ones as they can easily find luxurious units with affordable prices.
PFE’s report also indicates that the demand for office spaces has increased by 56% in the first quarter of 2018. This change might be correlated with the increased number of people who started to have their own businesses after the devaluation to assure independency, flexibility, and profit. Also, it might be correlated with Gulf investments since Egyptians who live there prefer to launch their own businesses in Egypt as a retirement plan.
Most Searched Districts in Cairo
Recently, the newly developed cities are considered the preferable option amongst buyers and tenants as well such as New Cairo, Sheikh Zayed, and 6th of October due to many reasons, among them, are their unique geographic location, greenery, unique design, and wide paved roads. Also, these districts include all the facilities and amenities anyone could ask for such as schools, universities, hospitals, clinics, clubs, mosques, malls, restaurants, and cafes.
Real Estate Marketing Trends in 2018
Buy VS. Rent
Regarding the ranking of the most searched districts amongst buyers in the first quarter of 2018, 6th of October City comes on the top of the list, according to Hammad. Comparing between the prices of the newly developed cities, we will find out that 6th of October is much cheaper than the fifth settlement as you will still find units with a starting price of 3000 L.E per meter there. For that reason, it is one of the preferable living destinations amongst investors, families, and newly married couples with different classes.
The second most searched district on PFE’s portal is The Fifth Settlement since it is one of the most affluent and the fastest growing areas in Cairo in terms of Construction. Thus, owning a residential unit there has become a dream for many individuals. Also, it includes some of the top universities in Cairo such as AUC and GUC in addition to the administrative, commercial, and financial hubs that serve the city and Greater Cairo.
North Investors Area is of the upscale areas in New Cairo and comes in the third place concerning the demand for sale amongst people. Kattameya and Sheikh Zayed come in the fourth and fifth place due to their uniqueness and quietness. Also, they include a variety of upscale residential compounds such as Beverly Hills, Kaza, Westown which attracts high classes and people with high-income levels.
Mokattam and Shorouk City are highly demanded amongst buyers due to their reasonable prices compared to other districts. El Shrouk City attracts newly married couples and families as well due to its quietness, greenery, and reasonable prices. Also, it contains a variety of important universities such as BUE and El Shorouk Academy in addition to other facilities and amenities such as supermarkets, malls, social club, restaurants, and cafes. Similarly, New Capital City is one of the mega projects launched recently by the Egyptian Government in Egypt and attracts many investors due to its unique geographic location as it is located 60 Kilometers away from Suez and Ain Sokhna and 45 east of Cairo. Thus, it is a perfect place for those who would like to relax and escape from the bustling city.
Also, Nasr City is highly demanded by citizens and those who would like to live in a vital area. It is one of the largest districts in Cairo and includes many malls such as City Stars, City Center, Tiba Mall, Serag Mall, Genena Mall. Moreover, its prices are considered reasonable in comparison to other vital districts in Cairo such as Heliopolis and Mohandeseen. Thus, it is considered a distinctive investment destination. The demand for properties available for sale is also high in Hadayek El Ahram especially amongst newly married couples due to its cheap prices, quietness, greenery, and unique geographic location. Also, it is surrounded by a fence which in fact guarantees safety and privacy.
Regarding rentals, Sarayat Maadi comes at the top of this list as it is one of the most sophisticated neighborhoods in Maadi. Also, it is one of the greenest and least crowded areas which in fact attract foreigners who are looking forward to living in Egypt as it reminds them of their homes in terms of nature and beauty. Zamalek comes second in terms of demand on properties amongst tenants generally and expats specifically as it includes a variety of foreign embassies, according to Hammad. New Cairo comes in the third place amongst tenants because it includes the most important educational facilities in Cairo such as AUC, GUC, FUE, CIC, and The International School of Choueifat. Moreover, New Cairo City comes in the first place concerning commercial for rent as it includes a variety of commercial complexes such as Concord Plaza, The Spot, Point 90 Mall, Cairo Festival City Mall, The Waterway…etc.
Sheikh Zayed and 6th of October are also very popular amongst tenants especially Egyptian and Arab students due to the high number of universities there such as Nile University, MSA, 6th of October University…etc. Moreover, 6th of October includes one of the biggest industrial zones in Egypt in addition to the largest corporations which in fact increase the job opportunities and therefore increases the demand on properties amongst tenants who would like to live close to their work. The demand for properties available for rent is also high in Dokki and Mohandessin due to their unique geographic location close to downtown which includes Cairo University in addition to banks, embassies, corporations and so on.