The top 10 real estate developers in Egypt reported total sales of EGP 168bn in the first half of 2023 (1H 2023), an increase of 88% from the same period last year, according to a report by The Board Consulting.
The report attributed the sales increase to the devaluation of the Egyptian pound against the US dollar, which has made real estate a more attractive investment option for Egyptians.
“Many people are now investing in real estate as a secure option,” said Ahmed Zaki, managing director of The Board Consulting. “They see it as a way to protect their savings from inflation and currency devaluation. And with the North Coast being the most attractive destination for real estate investment, they are also looking for a good return on investment.”
He concluded: “It’s worth mentioning however that the total 168bn sales of the first half year in 2023 are generated in the following priority order: East Cairo, North Coast and finally West Cairo”.
Egypt’s top 10 developers for the first half of 2023 were led by Talaat Moustafa Group (TMG) with EGP 51bn in sales; of which EGP 21bn was generated in quarter 1; and EGP 30bn in Q2, taking the market by surprise.
Naguib Sawiris’s Ora maintains its second place for the second quarter in a row with total sales of EGP 25bn; led by its premium niche projects, with Solana and SilverSands being the most successful in this period.
Palm Hills, on the other hand, comes third with EGP 17bn focusing on West Cairo projects and new phases in Badya projects. Strong brand name, competitive pricing and extended payment plans were contributing factors to its sales figures.
Founders, a joint venture between Ahly Sabbour and Hyde Park, came forth with EGP 13.4bn filling a market gap with its ‘ready to deliver” units offering a competitive pricing scheme; while City Edge ‘ready to deliver” units in the New Administrative Capital and recently launched (V40) in New Cairo significantly contributed to its EGP 13.3bn sales and its 5th place ranking.
Tatweer is sixth on the list with EGP 12bn; with Q2 alone generating almost EGP 9bn, due to project SALT in the North Coast, contributing more than %50 of total sales in the first half of the year.
With EGP 9.6 bn, Mountain View comes in seventh place and continues to maintain the same sales pattern led by its projects in West Cairo, which contribute to more than %60 of its total sales in this period. Mountain View also recently launched its North Coast project (LVLS) and is expected to have high sales growth in Q3.
Landmark for Real Estate ranks eighth with EGP 9.3bn in sales, driven by its flagship project ‘One Ninety’, followed by its latest luxury residential and commercial ‘Stei8ht’, showing its offering of a diversity of residential and commercial units.
In ninth place, SODIC generated EGP 9.2bn in sales. SODIC’s collaboration with SAFI group on the acquisition of a new 440 acres of land showed significant sales performance in Q2.
NEWGIZA concludes the top 10 list with EGP 9bn, driven by Seashell Playa which contributes more than 60% to its sales. Following its recent project launch (Playa Ras El Hikma) in the North Coast, NEWGIZA is expected to be one of the top-selling developers in the North Coast.
Yasser Ezz El-arab, board member of The Board Consulting, said that total sales in Egypt’s North Coast last year [2022] generated EGP 77bn, while this year sales in the North Coast are expected to exceed EGP 100bn to EGP 120bn.
“The North Coast is becoming the preferred destination for real estate investment,” said Ezz El-arab. “It offers a variety of projects to choose from, including beachfront properties, golf courses, and ski resorts. And with the recent devaluation of the Egyptian pound, it has become even more affordable for Egyptians.”
Ahmed Nazmy, Chairperson at The Board Consulting, commented: “Despite the different developers’ strategies with some being more conservative than others, it was interesting to see that the North Coast is leading with unprecedented project launches – despite economic difficulties, driving developers to pursue more lands”.
Nazmy Added: “The study also shows that the increased cost ofconstruction materials led to price increase of 25% – 50% on new launches, causing a buying rush to secure units against further price hikes”. he concluded: “Finally, expanding to the GCC and Saudi Arabia is becoming a general theme on almost all the developers’ agenda”.
Runners-up outside the ‘Top 10 list’
• Emaar was not in the top 10 for the first time, achieving total sales of EGP 8.85bn. However, in July, Emaar generated EGP 10bn following the launch of its latest project, “Soul” in the North Coast.
• Saudi Egyptian Developers (SED) achieved EGP 8.8bn in sales, driven by its “Marina M8” project with sales of EGP 4bn. This highlights the demand for properties in the North Coast area.
• Orascom achieved almost EGP 7.7bn in sales across its projects in West Cairo and the Red Sea. O West and El Gouna were the leading projects in terms of sales.
• Misr Italia was in the top 10 list in the first quarter but slowed down in the second quarter despite the successful launch of its “Solaire” project in the North Coast. Solaire contributed EGP 4bn to Misr Italia’s sales.
• Madinet Masr successfully maintained its sales performance, reaching EGP 7bn. The company also took positive steps in launching its new project, “Zahw” in Assyout.
• Al-Ahly Sabour generated total sales of EGP 6.7bn, doubling its sales in comparison to the same period last year.
