By: Heba Gamal
Translation: Muhammad Khalid

Egypt has emerged as a prominent investment hub in the Middle East’s real estate market, owing to its strategic location, contemporary designs, picturesque views, and other aspects. On top of these investment options, the North Coast stands out as the most sought-after destination in the Egyptian real estate market. This trend is particularly evident during the summer season, with a surge in demand for ready-made units, coupled with the return of many Egyptians working abroad.

Several real estate experts predict a notable increase in sales for the North Coast’s projects during the 2023 summer months. This is attributed to the launch of new expansions by some developers and the ongoing development of existing projects, along with expected price increases.

Sherif Hammouda, Chairman of the Board of Directors of GV Investments, stated that the company achieved its target sales during the summer of 2022, surpassing EGP 1 bn. They aim to achieve EGP 2 bn during the summer of 2023.

Additionally, Mohamed Eldahan, the CEO of City Edge Developments, pointed out that the company experienced a notable 37% growth in sales during the 2022 summer season, compared to the prior year, reflecting their dedicated efforts towards improving the implementation rates.

He further disclosed that City Edge has set its sights on boosting its land inventory throughout 2023 by acquiring land plots in Cairo’s east and west regions. In addition, the company aims to escalate its investments in current projects located in the North Coast, New Mansoura, and Sheikh Zayed cities. Eldahan affirmed the company’s ambitious plan to achieve a 20% increase in sales for the year 2023.

Government Incentives for Investors

The government places significant emphasis on promoting investments, eliminating barriers that impede investors, and ensuring seamless integration between private projects and state projects. President Abdel Fattah El-Sisi has issued a decision to enact legislative amendments that facilitate land ownership, foreign ownership of real estate in Egypt, and the removal of restrictions on non-Egyptians owning real estate.

The government has also expanded the issuance of golden licenses beyond strategic or national projects.

Furthermore, amendments to the profit transfer law and reductions in additional interest rates are being implemented to reduce tax burdens and stimulate investment.

The Prime Minister issued a set of decisions to encourage the developers, which is to extend the periods of real estate development projects by an additional 20% of the same total period and post the installments due from the developer for the same period.

This was in addition to approving to reduce the additional interest imposed by the Ministry of Finance to 1%, which was equal to an additional 2%.

The State is the North Coast’s Key Developer

The entry of the state as a major real estate developer in the North Coast region has further fueled investment interest. The transfer of ownership of the 707-acre area to the New Urban Communities Authority has attracted investors by unifying the dealing process and expediting the planning and development of these lands. This move aims to establish integrated urban communities similar to the New Alamein City.

North Coast Diverse Projects

Various real estate development companies have launched distinct projects on the North Coast. Mabany Edris introduced its new project, Koun, in Ras El Hikma, covering an area of 447,657.5 sqm, with investments totaling approximately EGP 6 bn, which is part of the company’s expansion plan.

Mohamed Edris, Chairman of Mabany Edris revealed that construction is scheduled to start in the fourth quarter of 2023, with the first phase expected to be delivered within four years., noting that the North Coast has experienced significant urban growth recently.

Assem El-Gazzar, the Minister of Housing, Utilities, and Urban Communities issued a ministerial decree no. 275 for the year 2023 allocating a land plot to Madaar for its new project, Azha North, in Ras El Hikma, spanning 250 acres. The project comprises residential, hotel, and commercial units, as well as one of the largest and most luxurious hotels.

Mezyan Real Estate Development launched the Remal North Coast project in Ras Al Hikma on a 63,000 sqm area. The company also revealed plans to launch additional projects of the same caliber in multiple locations on the North Coast, Ain Sokhna, and Marsa Alam.

Q Developments introduced its first project on the North Coast in the Sidi Abdel Rahman area, named Q North. It boasts an exclusive location on a 100-acre area, offering competitive payment plans. Deliveries are scheduled to start after three years, with the complete project delivery expected after four years.

The first phase of Misr Italia Properties’ Solaré project was sold out within hours of its launch, achieving total contractual sales of EGP 2.4 bn for 320 units in the project.

Moreover, the Sixth of October Development and Investment Company (SODIC) signed a partnership contract with Al Safi Real Estate Development Company to develop 440 acres on the North Coast. This partnership builds on the success of the Caesar project, which includes over 400 housing units. Additionally, the June project was launched on a 285-acre area in 2021.

Mountain View announced contracting to develop a new 200-acre land on 179 km on the northern coast to establish the LVLS project to introduce a new concept of second homes.

The LVLS is considered an extension to the Mountain View Ras El Hikma project launched in 2007, and it includes more than 1,500 families, a commercial area, and numerous development buildings.

The project includes several phases, the last launched phase, EVIA, was launched in 2022, and achieved substantial success, with sales of EGP 3.6 bn within two days of its launch and total sales of EGP 4.9 bn during the summer season of 2022.

North Coast Projects Are More Affordable

One of the major advantages of the North Coast projects is their affordability. Ahmed Ahab, a member of the Real Estate Development Committee of the Egyptian Businessmen’s Association and CEO of Madaar, points out that despite the region’s attractive qualities, real estate prices in the North Coast are the most competitive due to the recent depreciation of the Egyptian pound against the US dollar.

He suggested more marketing should be done for this region globally, through the various tourist exchanges in the world, such as the Berlin and London tourist stock exchanges. There are also opportunities for promoting this region in the Fitur exhibition in Spain, the Tourism and Travel Festival in Dubai, and others. Promotional activities should involve the participation of tourism companies as well as real estate development companies in tourist areas and cities in Egypt.

Ahab stressed the need to expand the organization of real estate exhibitions abroad, with the participation of real estate companies and Egyptian developers, to display and promote their various projects, and to highlight the advantages offered by the Egyptian state to those who own real estate in Egypt related to residency, visas, nationality, and so on.

The El Alamein 2023 festival

The El Alamein 2023 festival constitutes an important opportunity to promote the New Alamein City and attract visitors and investors. The festival features various events, including sports, entertainment competitions, art galleries, and concerts starring leading Egyptian, Arab, and global singers.

Ahmed Ahab affirmed that there is strong demand from Arabs outside Egypt to buy properties in the New Alamein City and the North Coast recently, due to these promotional events and festivals.

He noted that the extension of the North Coast, starting from New Alamein to Sidi Abdel Rahman and Ras Al Hikma, offers promising investment opportunities in real estate, appealing to both Egyptians and Arabs from outside Egypt. Major companies that have a long history, including Arab Gulf firms, are pumping billions of investments into the region due to its unique beaches, stunning scenery, and proximity to Cairo, Alexandria, and Marsa Matrouh governorates.

He added that the Ras Al Hikma area, for instance, has a promising future like New Alamein, and will evolve into an integrated tourism and entertainment city of a distinctive style.

Sherif Hammouda, Chairman of GV Investments, told Invest-Gate in an exclusive statement that the New Alamein Festival has a major impact on encouraging investments and attracting customers, as it draws visitors from different places, qualifying New Alamein to be a year-round residential city in addition to transforming it from a local resort town into a global city.

Mohamed Eldahan confirmed that the Egyptian government aims to significantly increase the influx of both local and foreign investments to New Alamein City. He also highlighted the New Alamein festival as a remarkable opportunity to attract further investments to the city and the North Coast region, particularly in the real estate sector.

According to Eldahan, investors have the chance to acquire land plots and develop comprehensive urban communities, including villas and upscale apartments. He anticipates a surge in demand for properties in the coastal city due to its appealing location and rapid development.