By: Hadeel Abdelmottaleb & Aya Rady
Featured by its silky white sandy beaches and sparkling turquoise water, the North Coast has a strategic location on the Mediterranean Sea, which has principally bolstered its recognition as an unprecedented venue. Amidst the vast lineup of distinctive hallmarks of Egypt’s natural borders, the latter is regarded as one of the longest coastlines in North Africa.
With this in mind, Invest-Gate puts the spotlight on the dynamics and preferences of second homeowners, together with potential purchasers, particularly those opting for units on the North Coast, while laying emphasis on the purchasing power partaking in the home buying roller coaster ride.
Probing North Coast Homeowners
In a survey conducted by Invest-Gate’s R&A team, it has been indicated that almost 27% of Egyptians own a second home on the North Coast. Generally speaking, the entire sample opted for a vacation house mainly for personal use.
According to the study, roughly 67% of the age group of 50+ years old enjoys the luxury of having a second residence on the North Coast, followed by 56% of those aged between 40 and 49 years old.
Digging deeper into the dynamics, 100% of the income group of EGP 15,000-20,000 owns a second home on the North Coast, with 75% of those earning between EGP 10,000 and EGP 15,000 coming up next.
Who Spends More Time at Second Homes, Males or Females?
A total of 63% of all owners annually spend at least two to four weeks in their North Coast vacation properties. On the background, approximately 26% of male respondents have purchased extra houses in the area, while 28% of the sample’s females followed suit.
Preferred Unit Type on the North Coast
Out of all surveyed purchasers, 74% possess apartments/chalets in various residential projects on the North Coast, followed by villa and townhouse buyers, with each representing an equal 13% share.
Favored Payment Methods for Home Buyers
Accordingly, half of North Coast home buyers have acquired their second homes in cash. The other half went for feasible payment terms, 75% of which settled on six-to eight-year installment plans.
Sought-After Factors for Second Homeowners
As for after-sales benefits, maintenance marks 88% of services demanded by the North Coast’s homeowners, with hosting events and housekeeping duties coming after at 38% and 25%, respectively
North Coast: Ready to Welcome Residents?
When asked if the North Coast is ready to host residents all-year-round, around 13% of the respondents believe they can entirely move and lodge there. The remaining 87% of homeowners, however, regard it as a seasonal city and consider the currently provided services insufficient for their daily needs.
A total of 100% of surveyed home buyers deem transportation facilities as the most missing services on the North Coast, followed by 93% and 57% of owners who see that educational services, as well as job opportunities and medical services, respectively, are among the missing factors.
In a nutshell, both public and private sectors are advised to invest more in the provision of such services and facilities, including transport and education projects, which will certainly reflect on the availability of further employability, and thus, turn the North Coast into a habitable destination in the near future.
Find out more on what’s going on the real estate industry during summer 2019, with an extraordinary focus on the North Coast, at Invest-Gate’s August report/issue.