By: Hadeel Abdelmottaleb & Aya Rady
Given Invest-Gate R&A team’s intensive research on Egypt’s second-home market, it is noteworthy to highlight how both the North Coast and New Alamein can considerably fuel substantial investment inflows. Endeavoring to uplift the real estate market and get a grip on the current slowdown, Invest-Gate pinpoints the most notable reforms and trends in these coastal spots, in terms of purchasing power, determinants for owning vacation residences, desirable locations, sought-after facilities and features, and most importantly, investment potentials.
Part I: Second-Home Owners
– Around 20% of the study’s respondents own a vacation house.
– Approximately 50% of second-home buyers’ ages range between 30-39 years old.
– A total of 40% of the North Coast’s second-home owners earn a monthly income of between EGP 20,000 and EGP 30,000.
Part II: North Coast Homeowners
– Nearly 27% of the North Coast survey’s respondents have second homes on the North Coast.
– Roughly 31% of them are aged between 40 and 49 years old, while about 25% of them are above 30 and 39 years old.
Determinants for Owning Vacation Residences:
Approximately 80% of surveyed homeowners bought second homes for personal use.
North Coast Owners
Almost 100% of the North Coast’s home buyers own vacation properties there for own ends.
– Half of the surveyed people have second homes on the North Coast, followed by Ain Sokhna owners and purchasers of other coastal cities, equally at 10%.
– About 34% of the sample’s non-owners prefer buying additional units on the North Coast, with Ain Sokhna coming up next at 24%.
Sought After Facilities and Features
– In general, beachfront is considered the most wanted feature among 100% of surveyed second-home buyers, while other facilities provided by developers, including restaurants/cafes, swimming pools, and clubhouses, subsequently stand at 80%, while safety comes next at 70%.
– As for facilities, retail and entertainment outlets are considered the most attractive for 100% of second-home owners, while 80% favor swimming pools.
North Coast Owners:
– For North Coast buyers, beachfront is also deemed the most desirable feature for 94% of them, coming after safety at 50%, followed by prices and proximity to living cities at 44%.
– Restaurants/cafes, alongside swimming pools, are each considered the most demanded facilities for 69% of North Coast owners.
– The demand in the second-home market today stands at 50%.
– Approximately 34% of potential buyers prefer a second home on the North Coast, followed by Ain Sokhna at 24% and New Alamein at 6%.
– Given the shortage of services on the North Coast as per the study conducted on 27% of its owners, there are a number of investment opportunities in various real estate and construction activities across the North Coast to transform it into a sustainable city and an all-year-round destination.
– Demand on transportation services reached 100%
– Demand on educational services reached 93%
– Demand on medical services reached 57%
– Demand on commercial services reached 29%
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.