CAIRO - 7 August 2023: The Board Consulting's latest half-year report has revealed an impressive surge in the real estate sector as the top 10 developers achieved a total sales figure of over LE 168 billion. This marks an 8 percent increase compared to the same period last year.
The driving force behind this growth can be attributed to the devaluation of the Egyptian pound against the US dollar, prompting individuals to secure their funds through more stable investment avenues, capitalizing on the potential for price appreciation.
Ahmed Zaki, Managing Director of The Board Consulting, shared his insights, stating, "The real estate market's resilience and adaptability amidst economic challenges, compounded by devaluation, is truly remarkable."
Zaki continued, "A surge in real estate investments is evident, particularly in the North Coast, offering the best return on investment (ROI) for rentals and expected post-purchase price hikes."
He concluded, "It's important to note that the LE 168 billion in sales for H1 2023 was distributed in the following order of priority: East Cairo, North Coast, and finally West Cairo."
Topping the list of Egypt's top 10 developers for the first half of 2023 is Talaat Mostafa Group, achieving an impressive LE 51 billion in sales. Notably, LE 21 billion was generated in Q1, with an additional LE 30 billion in Q2, surprising the market.
Ora, under Naguib Sawiris's leadership, maintained its second position for the second consecutive quarter, with a total sales value of LE 25 billion. Ora's premium niche projects, including Solana and SilverSands, significantly contributed to this success.
Claiming the third spot is Palm Hills, with LE 17 billion in sales, focusing on West Cairo projects and new phases in Badya projects. Factors such as a strong brand presence, competitive pricing, and extended payment plans played a crucial role in boosting sales figures.
Founders, a joint venture between Ahly Sabbour and Hyde Park, secured the fourth position with LE 13.4 billion in sales. The company filled a market gap with its "ready to deliver" units, offering a competitive pricing scheme. City Edge, with its "ready to deliver" units in the New Administrative Capital and the recently launched V40 project in New Cairo, contributed significantly to LE13.3 billion in sales, securing the fifth place ranking.
Tatweer claimed the sixth spot, achieving LE 12 billion in sales. A LE 9 billion of this total was generated in Q2 alone, primarily due to the North Coast project SALT, which contributed to over 50% of the first-half sales.
Mountain View ranked seventh with LE 9.6 billion in sales. The company's projects in West Cairo were the driving force behind over 60% of its total sales. The recent launch of its North Coast project (LVLS) is expected to further boost sales growth in Q3.
Landmark for Real Estate secured the eighth position, boasting LE 9.3 billion in sales. The flagship project "One Ninety" and the luxury residential and commercial project "Stei8ht" showcased the company's diverse offerings.
SODIC took the ninth spot with LE 9.2 billion in sales. A notable performance in Q2 resulted from SODIC's collaboration with SAFI group on the acquisition of a new 440-acre land.
Closing the top 10 list is NEWGIZA, achieving LE 9 billion in sales. The Seashell Playa project contributed to over 60% of the company's sales. The recent launch of the Playa Ras El Hikma project in the North Coast positions NEWGIZA as a top-selling developer.
Yasser Ezz El-arab, Board Member at The Board Consulting, highlighted the growth in the North Coast, with expectations of sales surpassing LE 100 to LE 120 billion this year, up from LE 77 billion in 2022.
Ahmed Nazmy, Chairman at The Board Consulting, emphasized the leadership of the North Coast in project launches despite economic challenges, noting a 25% - 50% price increase due to rising construction material costs. He concluded, "Expanding to the GCC and Saudi Arabia is a recurrent theme on many developers' agendas."
The report also delved into key developers outside the top 10 list, revealing Emaar's cautious sales approach, Saudi Egyptian Developers' diversified projects, Orascom's achievements in West Cairo and the Red Sea, and other noteworthy insights.
Misr Italia, a former top 10 member, saw a slowdown despite its successful "Solaire" project launch, contributing LE 4 billion. Madinet Masr maintained its sales performance, achieving LE 7 billion in sales, with the launch of the "Zahw '' project in Assyout.
Al-Ahly Sabour doubled its sales to reach LE 6.7 billion, showcasing its growth in comparison to the same period last year.