Savills Egypt, the local office of the prominent global real estate advisor, has reported a notable surge in real estate sales rates along the North Coast, particularly in Ras El Hekma, which has emerged as a standout location, Invest-Gate reports.
This increase in sales can largely be attributed to the landmark agreement signed in March 2024 between the Egyptian government and the Abu Dhabi Developmental Holding Company (ADQ), aimed at reshaping the real estate landscape of the region.
“Year-on-year sales rates have exhibited remarkable growth,” stated Catesby Langer-Paget, Head of the Savills Egypt Office. “In addition to the pivotal ADQ agreement, several factors are propelling demand in the North Coast market. The region is swiftly evolving into a significant regional tourist hub, drawing a diverse clientele comprising Egyptians and GCC nationals. There is also a rising trend of Egyptians acquiring smaller second homes in emerging areas like Dabaa, Ras El Hekma, and Sidi Henish, primarily for investment purposes. Moreover, escalating rental demand from GCC nationals and Egyptians residing abroad is further strengthening market expansion.”
Ras El Hekma has notably spearheaded the annual sales surge with an impressive 75% increase, followed by Dabaa and Sidi Henish, both registering a 68% rise. Premium developments have surpassed upscale units, witnessing growth exceeding 71%, while upscale units observed a 64% increase. Townhouses and twin houses emerged as the unit types with the most notable boosts in sales rates, underscoring their high demand in the market.
“Looking ahead, the North Coast market is projected to sustain its upward trajectory over the next one to two years. With certain developments extending operations into mid-October, the region is solidifying its position as an even more economically viable destination,” highlighted Langer-Paget. Anticipated hospitality projects are anticipated to cater to a broader visitor segment, dispersing traffic across the entire Coast rather than concentrating it in specific zones. This expansion will be supported by a competitive environment diversifying offerings and appealing to both end-users and investors.
