The most prominent events in the real estate market in Egypt during the first quarter of 2023

The average asking price for apartments in the first quarter of 2023 increased by 30% compared to the first quarter of 2022, while the average asking price for villas increased by 25%.

This increase could lead to the impact of the devaluation of the Egyptian pound and the prevailing high inflation rate on construction costs in the real estate sector.

Developers have also seen changes in profitability

Buyers also rushed to buy real estate in an attempt to avoid being negatively affected by the decline in the value of the local currency against the dollar.

Real estate market in Egypt in the last 3 years

Egypt's real estate market attracts investments worth $120 billion from sovereign wealth funds in the Middle East

Sovereign wealth funds in the Middle East have begun interest in investing up to $120 billion in Egypt in the coming years.

This was stated in the Africa Prospects 2023/24 report issued by Knight Frank, which stated that the real estate market in Egypt enjoys distinguished investment prospects.

According to the report, the UAE has already invested in 71 real estate projects in Egypt, worth up to $5.6 billion in 2021.

Meanwhile, Saudi Arabia has invested $6.1 billion so far in 6,017 projects in the fields of industry, construction, tourism and other sectors, according to statements by Egyptian Minister of Trade and Industry Ahmed Samir in 2022.

Total real estate investments

The report indicates that in 2022, total real estate investments in Cairo rose to $20 billion, of which $16 billion is allocated to the residential sector.

Average residential real estate prices rose by about 10 percent during the same year.

The Egyptian government is also working on several mechanisms to promote real estate exports, including establishing a real estate fund with income-generating administrative and commercial assets, as well as trading real estate on the Egyptian Stock Exchange.

These mechanisms also include assessing the economic impact of the idea of establishing a real estate exchange, which will serve as a platform that enables investors and real estate companies to buy and sell shares in and invest in real estate assets. This exchange would complement traditional real estate markets, providing opportunities for real-time trading and more liquid investments. In the real estate sector.