Egypt's real estate market saw an unexpected boom in 2023, driven by consumer panic buying. This shift significantly altered market dynamics and allowed developers to achieve a sales increase of approximately 70% compared to 2022, as reported by The Board Consulting. The firm's report revealed that real estate developers recorded EGP 800bn in sales for the fiscal year (FY) 2023, marking a 68% rise from EGP 476bn in FY 2022. This trend of panic buying persisted through January and February, and into the first of March 2024, with developers sustaining and expanding their sales through diverse offerings in the first quarter (Q1). A landmark direct investment deal in February 2024, known as the Ras El Hekma deal, coupled with the flotation of the Egyptian pound, transformed market dynamics and curbed the panic buying spree. The report highlights that the combined sales of the top 10 developers in Q1 2024 reached EGP 235bn. This represents a staggering 217% increase over Q1 2023's figures, with a total of 18,300 units sold—a 51% rise from the previous year. The average unit price in Q1 2024 soared to EGP 13.5m, up by 115% from Q1 2023. It was noted that the top 10 developers' sales surged by 217% in Q1 2024 compared to the same period in 2023. Moreover, Q1 2024 continued the trend of sales growth seen in the market, even outperforming Q4 2023—the highest-selling quarter of the previous year—by 27%, setting a new record for the highest quarterly sales in Egypt's real estate history. Talaat Moustafa Group led the pack with total sales of EGP 63.5bn in Q1 2024, a 202% jump from EGP 20.5bn in Q1 of the preceding year. Ora Developers followed, with sales reaching EGP 29.8bn in Q1 2024, nearly doubling from EGP 15bn in Q1 2023. Palm Hills secured the third spot with EGP 28.9bn in sales for Q1 2024, compared to EGP 7bn in the same quarter of the previous year. Mountain View reported EGP 27.88bn in sales for Q1 2024, a significant increase from EGP 4.5bn in Q1 of last year. City Edge recorded EGP 18.4bn in sales for Q1 2024, tripling from EGP 4.6bn in Q1 2023. Lavista Developments witnessed the most remarkable growth among its peers, with Q1 2024 sales reaching EGP 15.3bn, up from EGP 0.5bn in Q1 2023—a 3000% surge. Madinet Masr reported EGP 14.8bn in sales for Q1 2024, a 640% increase from EGP 2bn in the same period last year. New Giza followed with EGP 13bn in sales, a 333% rise from EGP 3bn in the previous year. Hyde Park achieved EGP 12.1bn in sales, a 348% growth from EGP 2.7bn in the prior year. Lastly, Tatweer Misr rounded out the top ten with EGP 11bn in sales for Q1 2024, doubling from the previous year's Q1. The report concluded with an analysis of Egypt's unique real estate market dynamics: "Egypt's real estate sector thrives amidst economic uncertainty, with sales flourishing during periods of instability. However, sales tend to decline when the economic climate stabilizes. Since Ramadan, the market has stabilized and slowed down, but with the upcoming North Coast season, a resurgence in sales activity is anticipated." Finally, the report projected intense competition along the North Coast, especially with Talaat Moustafa Group's presence and forthcoming plans for Ras El Hekma. This is expected to drive a significant uptick in demand from both Egyptians and expatriates.
