By: Wael Hossam El Din

Egypt’s real estate sector has always been a significant contributor to the country’s economy. The summer homes market, in particular, has seen remarkable growth in recent years.

One of the driving factors behind the growth of this market in Egypt is the country’s demographic changes.

According to a report by JLL, the demand for summer homes in Egypt has increased by 15-20% annually over the past five years. This surge is driven by the growing middle class with increasing disposable income and a desire for a second home away from the city. This trend is expected to continue over the next few years, as Egypt’s population continues to grow, and more people enter the middle class.

Therefore, in response to the increasing demand for high-quality living spaces and amenities, investors are looking for more attractive units, including private beaches, swimming pools, and golf courses.

It is important to emphasize that while the North Coast has long been the favored destination for summer homes, the regions of the Red Sea and Ain Sokhna are gaining increasing interest. The development of essential infrastructure, including airports, highways, and new resorts, has made these areas more accessible and alluring to potential buyers and renters.

Going Green? Sustainable and Eco-Friendly Developments Take Over

In the summer homes market, industry experts predict a continued trend towards sustainability and eco-friendliness, as well as a focus on luxury amenities and high-end finishes.

According to a report by the Daily News Egypt, the demand for summer homes in Egypt is increasing, particularly among foreign investors and expatriates.

Moreover, there is a trend towards more sustainable and eco-friendly developments in response to the growing concern for the environment. For example, the Mountain View Ras El Hikma development on the North Coast is designed to be energy-efficient, with solar panels, natural lighting, and rainwater harvesting systems. Such developments are expected to become increasingly popular among environmentally-conscious buyers and renters.

Growing Problems, Insufficient Housing Options, and Underdeveloped Facilities

Despite the growth and potential opportunities, there are some challenges facing the summer homes market in Egypt. One of the most significant difficulties is the shortage of affordable housing in urban areas, which has led to increasing demand for summer homes as a form of investment and rental income.

According to a real estate consultancy Jones Lang LaSalle report, housing demand exceeds supply by over 3 million units in Egypt, especially in major cities like Cairo and Alexandria.

This shortage of affordable urban housing has driven many Egyptians to invest in summer homes that they can rent out to generate supplementary income.

Additionally, there is a lack of infrastructure in some areas, which can deter potential buyers and renters. An article in Al-Ahram notes that many new summer home compounds are being built in remote desert areas without adequate road access or utilities like water and electricity. Poor infrastructure can increase costs and inconvenience for owners.

Also, this makes some locations less appealing for tenants, limiting the income generation potential for investors. Hence, upgrading infrastructure like roads, power grids, and piping in underserved areas could facilitate further growth of Egypt’s summer home market.

Overcoming these challenges around affordable urban housing and infrastructure will be key to enabling the summer homes sector to keep growing and providing housing alternatives for Egypt’s rising population. With strategic policies and investments, Egypt’s summertime escapes could offer even more classes a chance to own property and supply their income.

Pandemic Reshapes Policies of Developers and Investors

The COVID-19 pandemic has also had a significant impact on the sector, with many developers and investors adjusting their strategies and prioritizing safety measures. According to an article in Enterprise, developers have implemented social distancing and enhanced sanitization in common areas to protect owners and renters.

Some compounds have also introduced remote check-in procedures and touchless technology. However, the pandemic has also created opportunities for growth and development, such as the increased demand for outdoor spaces and proximity to nature. With lockdowns and restrictions on movement, people are seeking summer homes that provide fresh air and open areas.

An industry report predicts there will be a focus on sustainability, larger outdoor areas, and smart home technology in new summer home compounds as buyers emerge from the pandemic.

The crisis has compelled developers to rethink their offerings and cater more to changing priorities in the post-COVID era. While balancing safety and new buyer preferences, the summer homes market in Egypt seems poised to grow further. But managing the continuing impact of the pandemic and potential future waves will require agility and innovation.

Overall, by emphasizing health, nature, and functionality in their projects, investors can tap into rising demand among Egyptians looking for a safe and comfortable escape.

Promising Future for Summer Homes in Egypt

Despite the challenges, there are still many opportunities for growth and development in the summer homes market in Egypt.

The country’s strategic location, beautiful landscapes, and diverse culture make it an attractive destination for both local and international buyers and renters.

Moreover, there is a growing demand for more sustainable and eco-friendly developments, which can provide a unique selling point for developers and investors.

Golden Era Dawns for Egypt’s Seaside Sector with Warm Welcome to Investors in Coastal Communities

In conclusion, the future of Egypt’s summer home market looks bright, with a combination of emerging trends, challenges, and opportunities.

The increasing focus on luxury, sustainability, and eco-friendliness in developments, coupled with the country’s strategic location on the Red Sea and natural desert beauty, will likely drive growth in the sector moving forward.

While there are challenges for Egypt to grapple with to fully unlock its potential in this market, such as the shortage of affordable housing options and lack of adequate infrastructure in some areas, the general outlook remains positive for investors and developers seeking to capitalize on Egypt’s untapped summer homes market due to the growing domestic middle class, demand for second homes, and burgeoning tourism industry, according to Knight Frank Egypt Summer Homes Report.

With the implementation of effective strategies and strong government support, Egypt’s summer homes sector has the potential to generate significant job opportunities, stimulate economic growth, and thrive in the years ahead.