The second day of Cityscape’s 13th edition witnessed an insightful panel discussion titled “Real estate investment opportunities – Don’t invest in Egypt real estate without knowing this!” The panel delved into the essential information required to select the right real estate unit for investment, the investment opportunities available in the North Coast and the New Administrative Capital, in addition to the various requirements and budgets of clients.
The panel was moderated by Hazem Sherif, Founder, CEO, and Editor-in-Chief of Al Mal Newspaper. Speakers included Ibrahim El Missiri, Group CEO Of Abu Soma Development Company (Somabay), Tarek Abdel Rahman, CEO of Bonyan Development and Trade, and Mohamed Samy, Vice President of Sales at Coldwell Banker.
Ibrahim El Missiri, Group CEO Of Abu Soma Development Company (Somabay), praised Egypt’s strategic geographic location, highlighting the unique advantages of each region. He emphasized that the Red Sea is one of the country’s most important coastal areas. El Missiri added, “Hurghada, for instance, is considered the ‘New Alexandria.’ It boasts the second largest airport in Egypt, receiving flights from around the world, and has three ports, directly connecting the region to Saudi Arabia. Additionally, Hurghada has 110,000 hotel rooms, solidifying its position as one of Egypt’s premier tourist destinations.”
El Missiri pointed out that areas such as El Gouna, Sahl Hasheesh, and Soma Bay have undergone significant development over the years. He explained that urban development in Egypt is continually expanding, a trend that is also evident in the Red Sea region. He also highlighted that the resale market is currently experiencing a slowdown due to an oversupply of properties. He noted that investors tend to purchase properties on installment plans, making resale difficult except in cases of necessity, such as the need to acquire another property El Missiri concluded that the oversupply is leading to a lack of resale activity.
Regarding North Coast sales, El Missiri mentioned that sales during this summer season exceeded 400 billion Egyptian pounds, which caused challenges in the resale process. He pointed out that Ras El Hekma is witnessing a significant boom and achieving an unprecedented shift in the market. While the Red Sea, although it is present in the market, its trend has not yet started, expecting that most real estate developers will head to the Red Sea unless the field is open for them in Ras El Hekma.
He also indicated that the size of the real estate market reaches 28,000 units annually, which does not reflect the real size of the real estate market in Egypt, but rather the great movement in the market is what gives this impression. He explained that the success of projects in the North Coast requires either a strong Egyptian brand or a Gulf investor, warning of the risks facing Egyptian companies that follow companies from outside the country, as they may be unable to deliver their projects on time.
During the panel discussion, Tarek Abdel Rahman, CEO of Bonyan Development and Trade, stated that administrative and commercial units achieve high returns on investment. He pointed out that the size of global real estate investment is 13.5 trillion dollars, with investment funds accounting for 70% of the market, while individuals account for only 30%.
He explained that commercial real estate achieved an average profit of 32%, compared to a 20% increase when investing in dollars and 13% in the stock market. Abdel Rahman added that investing through real estate platforms allows investors the opportunity to easily sell a portion of their properties.
He also mentioned that New Cairo occupies the first place in real estate activity, followed by Sixth of October City in second place, and then Downtown Cairo in third place.
Mohamed Samy, Vice President of Sales at Coldwell Banker, then stated that investing in the Red Sea is a long-term investment, emphasizing that real estate exports in the Red Sea projects are the best option. He added that utilizing units there offers greater opportunities in terms of time and return on investment.
He pointed out that the sales percentages are distributed as follows: 40% in the Fifth Settlement, 25% in the North Coast, 10% in the Red Sea, and 25% in Sheikh Zayed and October. He also clarified that investment in the North Coast has the highest return, followed by the Fifth Settlement, then Sheikh Zayed, and finally the Red Sea.
Samy further explained that the return on investment in the North Coast over the past five years has surpassed any other region, noting that the market there does not have commercial or administrative units but requires a specific type of investor. He indicated that the lowest price for an administrative unit in some areas is not less than 120,000 Egyptian pounds in cash.
Samy concluded by emphasizing that the real estate market will not come to an end, as demand exceeds supply, indicating that the market needs about one and a half million units annually to meet the needs of investors, and Egypt is the most affordable in prices compared to the world.
It is worth noting that Cityscape Egypt has established itself as one of the largest and most important real estate events in the region. This year’s edition is exceptional, spanning over 40,000 square meters in four halls and featuring over 80 real estate developers showcasing the latest projects in commercial and residential real estate.
