Thursday 21 Nov
Engineer Tareq Shoukry, head of the Real Estate Development Chamber at the Federation of Egyptian Industries, stated that the Egyptian North Coast will become a prime investment destination for citizens of the Gulf countries and Europe. Shoukry attributed this forecast to the increasing competitiveness of Egyptian real estate, fuelled by the depreciation of the locl currency.
In a television interview with Al
Sharq Channel, he revealed that Arab customers currently account for
approximately 50% of occupancy in various units and projects along the North
Coast. He highlighted the region's ongoing development, driven by government
initiatives, although he noted that current sales are primarily concentrated
among high-end buyers seeking premium properties.
Shoukry emphasized the unique
characteristics of the Egyptian real estate market compared to its Arab
counterparts. With a population of 110 million and an annual growth rate of two
million, Egypt boasts a substantial and growing demand for real estate.
However, he also acknowledged the
challenges facing real estate companies: the continuous rise in land prices, as
regulated by the New Urban Communities Authority, and the increased prices of
construction materials such as iron, cement, and aluminium due to regional
conflicts.
The development companies have
become strongly hedged against price fluctuations through three important
strategies phased project sales, rapid construction, and retaining
approximately 20% of the land for future development to compensate for losses
in previous years.
He added that many developers incurred losses in sales achieved between 2021 and 2023 due to the rise in construction materials and inflation, which exceeded the prices of previously sold real estate units.
