Egypt Commercial Real Estate Market

Egypt Commercial Real Estate Market Overview: 

The Egypt commercial real estate market size reached US$ 332.32 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 708.73 Billion by 2032, exhibiting a growth rate (CAGR) of 7.80% during 2024-2032. Economic reforms, infrastructure development, growth of population, measures taken by the government to enhance the business environment, and rapid urbanization represents some of the key factors driving the growth of the market.

Egypt Commercial Real Estate Market Trends:

Economic Reforms and Infrastructure Development

Egypt’s commercial real estate market is vastly boosted by economic reforms and infrastructure development. In December 2021, a consortium comprising Aldar Properties and ADQ announced the successful completion of its acquisition of approximately 85.52% of the outstanding share capital of The Sixth of October for Development and Investment S.A.E. Measures that have been taken by the government to enhance the business environment include the adoption of the investment law and the creation of free zones, which have led to the inflow of foreign investments and confidence in the market. Furthermore, the construction of new cities, expansion of transport networks, and the development of smart cities have also improved connectivity and accessibility. These projects not only enhance the aesthetic value of commercial properties, but also create demand for office buildings, retail, and industrial properties, thus enabling market growth and a vibrant commercial real estate industry. For instance, in June 2024, marking nearly four decades of Egyptian-Kuwaiti collaboration, the Egyptian-Kuwaiti Real Estate Development Company plans to enhance its market leadership in 2024 through new projects, organizational restructuring, and talent acquisition. Managing Director Yousry Selim announced projects in East and West Cairo, aligned with Egypt's Vision 2030. General Consultant Mohamed Elwy revealed the flagship project, Noble Residence, in Taj City with an EGP 1.5 billion investment. This 25-fedan residential development will feature 180 units, including villas, twin houses, and townhouses, with deliveries expected by late 2026

Population Growth and Urbanization

The commercial real estate market in Egypt is rapidly expanding due to population growth and increasing urbanization. MARAKEZ, Egypt’s largest commercial mixed-use developer, announced its latest developments in East Cairo during a press conference at District Five. The 268-acre walkable destination sets the benchmark for mixed-use developments in Egypt, representing a stepping stone towards pioneering innovative developments. The population of the country is growing at a fast rate and the rate of urbanization is also high and this has created the need for more and more commercial space for businesses, services, and shops. Egypt urban population for 2022 was 47,689,118, a 1.83% increase from 2021. Since the population of urban areas is increasing, there is a great demand for office spaces, shopping complexes and industrial estates to accommodate the increasing urban population and workforce. This trend is further underpinned by the government’s efforts to establish new urban and commercial centres, meeting the changing requirements of firms and inhabitants, thereby further supporting sustained growth of the commercial real estate market.

Egypt Commercial Real Estate Market News:

• In June 2024, Orascom Development Holding AG (“ODH”), alongside all the other shareholders of RAK Tourism Investment FZC (“RAK”), has entered into a binding share purchase agreement with Cove Holdings Limited, a special purpose vehicle established and fully owned by Saqr Kamal Hasan (“SKH” or the “Buyer”), a prominent UAE investor, for the sale of the entire share capital of RAK. RAK is the entity that owns the rights to the leasehold of The Cove Rotana Hotel (the “Resort”), a luxurious 349-room hotel in the coastal city of Ras El Khaimah, UAE. ODH holds a 73% ownership interest in RAK.
• In June 2024, City Edge Developments has launched the Beachfront Towers project in New Alamein City, featuring four residential towers and a multi-use podium spanning 42,000 sqm. Designed to international standards, the project includes various multi-purpose facilities. The towers, ranging from 27 to 35 floors, offer 848 units sized between 120-680 sqm. The first tower, 85% complete and expected to finish by 2025, includes 180 residential units, 143 commercial units, and 656 parking spaces. The Engineering Consultants Group oversees the execution, with Hassan Allam Construction managing the construction.
   

Egypt Commercial Real Estate Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type and end use.

Type Insights:

• Rental
• Sales
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes rental and sales.

End Use Insights:

• Offices
• Retail
• Leisure
• Others
   

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes offices, retail, leisure, and others.

Regional Insights: 

• Greater Cairo
• Alexandria
• Suez Canal
• Delta
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Greater Cairo, Alexandria, Suez Canal, Delta, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Egypt Commercial Real Estate Market Report Coverage:

Key Questions Answered in This Report:

• How has the Egypt commercial real estate market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Egypt commercial real estate market?
• What is the breakup of the Egypt commercial real estate market on the basis of type?
• What is the breakup of the Egypt commercial real estate market on the basis of end use?
• What are the various stages in the value chain of the Egypt commercial real estate market? 
• What are the key driving factors and challenges in the Egypt commercial real estate?
• What is the structure of the Egypt commercial real estate market and who are the key players?
• What is the degree of competition in the Egypt commercial real estate market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Egypt commercial real estate market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Egypt commercial real estate market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Egypt commercial real estate industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.