Latest news with #RealEstateDevelopmentChamber
Zawya
14-07-2025
- Business
- Zawya
Egypt's property developers surges to 1,910 in 2025
Egypt - The number of real estate development companies operating in Egypt has grown remarkably over recent years, rising from just 75 firms in 2016 to around 1,910 by 2025, according to Osama Saad El-Din, Executive Director of the Real Estate Development Chamber at the Federation of Egyptian Industries. Saad El-Din attributed this surge to strong government support, including extensive infrastructure development, road network expansions, and the provision of suitable land plots for projects. These measures, he explained, have attracted both local and Arab investors to the Egyptian real estate market. He noted that the Chamber classifies companies as small, medium, or large based on their invested capital, and that thousands of new developers are currently applying to join. Highlighting the sector's importance, Saad El-Din described real estate as one of the main engines of the Egyptian economy, benefiting from continued growth despite economic challenges. He stressed the need to simplify procedures and boost real estate exports abroad, pointing out that Egypt offers competitive advantages in property investment compared to other markets. He further revealed that only 14% of Egypt's land has been developed so far, despite intensive efforts in recent years, leaving more than 86% of the country's land area untapped—representing significant opportunities for future projects. Saad El-Din also expressed hope that government support would continue, making it easier for Egyptians, Arabs, and foreigners to legally acquire property. This, he argued, would reinforce Egypt's status as a leading real estate destination in the region. Despite economic headwinds, Saad El-Din remains optimistic about the sector's prospects. He said real estate in Egypt continues to serve as a reliable store of value, supporting steady price growth over the long term. He explained that property prices are mainly driven by various inputs—such as the rising costs of raw materials, labour, and interest rates. As production costs increase year on year, this is reflected in final property prices. Regarding demand, Saad El-Din confirmed that the Egyptian real estate market remains attractive for both residential and commercial investment, supported by the country's growing need for urban expansion. 'The market is expected to see stronger demand for commercial properties if the local economy is stimulated and business activity picks up,' he said. 'There is no doubt that legislative and economic developments impact the real estate sector, but investors should remember that as long as Egypt continues to expand its cities, real estate will remain the best investment option.' He added that despite current economic pressures, the sector is likely to keep growing, driven by sustained demand for land, infrastructure, and new residential and commercial projects. Saad El-Din concluded that close monitoring of economic indicators—such as interest rate trends, developments in the construction sector, and potential legislative changes—will be essential. Nonetheless, he affirmed that Egypt's real estate market is expected to maintain its stability and attractiveness going forward. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (
Daily News Egypt
13-07-2025
- Business
- Daily News Egypt
Egypt's property developers surges to 1,910 in 2025
The number of real estate development companies operating in Egypt has grown remarkably over recent years, rising from just 75 firms in 2016 to around 1,910 by 2025, according to Osama Saad El-Din, Executive Director of the Real Estate Development Chamber at the Federation of Egyptian Industries. Saad El-Din attributed this surge to strong government support, including extensive infrastructure development, road network expansions, and the provision of suitable land plots for projects. These measures, he explained, have attracted both local and Arab investors to the Egyptian real estate market. He noted that the Chamber classifies companies as small, medium, or large based on their invested capital, and that thousands of new developers are currently applying to join. Highlighting the sector's importance, Saad El-Din described real estate as one of the main engines of the Egyptian economy, benefiting from continued growth despite economic challenges. He stressed the need to simplify procedures and boost real estate exports abroad, pointing out that Egypt offers competitive advantages in property investment compared to other markets. He further revealed that only 14% of Egypt's land has been developed so far, despite intensive efforts in recent years, leaving more than 86% of the country's land area untapped—representing significant opportunities for future projects. Saad El-Din also expressed hope that government support would continue, making it easier for Egyptians, Arabs, and foreigners to legally acquire property. This, he argued, would reinforce Egypt's status as a leading real estate destination in the region. Despite economic headwinds, Saad El-Din remains optimistic about the sector's prospects. He said real estate in Egypt continues to serve as a reliable store of value, supporting steady price growth over the long term. He explained that property prices are mainly driven by various inputs—such as the rising costs of raw materials, labour, and interest rates. As production costs increase year on year, this is reflected in final property prices. Regarding demand, Saad El-Din confirmed that the Egyptian real estate market remains attractive for both residential and commercial investment, supported by the country's growing need for urban expansion. 'The market is expected to see stronger demand for commercial properties if the local economy is stimulated and business activity picks up,' he said. 'There is no doubt that legislative and economic developments impact the real estate sector, but investors should remember that as long as Egypt continues to expand its cities, real estate will remain the best investment option.' He added that despite current economic pressures, the sector is likely to keep growing, driven by sustained demand for land, infrastructure, and new residential and commercial projects. Saad El-Din concluded that close monitoring of economic indicators—such as interest rate trends, developments in the construction sector, and potential legislative changes—will be essential. Nonetheless, he affirmed that Egypt's real estate market is expected to maintain its stability and attractiveness going forward.
Daily News Egypt
22-06-2025
- Business
- Daily News Egypt
Israel-Iran escalation may affect Egypt's property prices: Developers
Real estate developers and experts agree that the escalating regional conflict between Iran and Israel places Egypt's property market in a complex position. On one hand, demand for real estate may rise, as it is seen as a safe haven asset. On the other, the sector faces the looming threat of rising construction costs driven by disruptions in energy prices and supply chains. Shift in Developer Priorities Developers stressed the need for a strategic shift in how companies operate—moving away from a 'sales race' and toward ensuring execution capabilities. They emphasized that success is no longer measured by record-breaking sales, but by delivering projects on time and with the agreed-upon quality. While expressing cautious optimism about the market's relative stability—provided the conflict remains short-lived—they warned that any major escalation could force them to reassess pricing strategies and launch plans. Regional Conflict's Ripple Effect Tarek Shoukry, Chairperson of the Real Estate Development Chamber at the Federation of Egyptian Industries, stated that the intensifying conflict between Israel and Iran would inevitably have regional economic repercussions that would affect Egypt's property market. Shoukry noted that construction material prices are currently the most significant factor influencing real estate project costs. These may be impacted by the ongoing war—particularly due to the threat of closing the Strait of Hormuz and its potential economic consequences for countries across the region and the world. Cautious Sales and Financial Planning According to Shoukry, the market turbulence calls for a cautious sales strategy—selling a limited number of units in parallel with project execution to avoid the risks of sudden cost increases, which could lead to delays or execution challenges. He stressed the importance of thorough financial planning to absorb unexpected cost changes and advised against heavy expansion in long-term installment sales, warning that 'this equation could backfire' if costs continue to rise faster than anticipated. Property as a Safe Haven Regarding sales performance, Shoukry noted that demand for real estate typically rises during crises and wars, as property is viewed as a safe haven for preserving wealth—not only in Egypt, but also across neighboring markets, which may turn to Egyptian real estate due to its relative stability amid the conflict. Government Response The negative repercussions of the war prompted Egyptian Prime Minister Mostafa Madbouly to form a crisis committee under his leadership to prepare for developments across various sectors. Madbouly is set to meet regularly with committee members and advisory groups to assess the impact of recent events on key sectors, according to an official statement. The Israel–Iran conflict has already affected the Egyptian economy, including stock market losses, a slight depreciation of the Egyptian pound against the US dollar, and additional pressure on the state budget due to rising global oil prices. Conflicting Trends in Real Estate Ahmed Shalaby, member of the Ministerial Committee for Urban Development and CEO and Managing Director of Tatweer Misr, stated that while it is too early to fully assess the crisis's impact, two opposing trends are already emerging. On the positive side, demand for real estate is rising beyond expectations, as property remains a traditional safe haven during crises. On the negative side, costs are increasing due to potential energy price hikes and supply chain disruptions, which could cause shortages in construction materials. This is expected to place additional burdens on developers delivering projects based on pre-crisis pricing. In both cases, a rise in property prices seems inevitable. Challenges in Project Execution Shalaby added that while increased demand and rising prices may appear positive, they come with significant challenges in execution. The greatest risk, he explained, lies in cost differentials that developers must absorb. 'It's true that we all implement hedging strategies, but there's no way to guarantee where things are heading,' he said, especially with the possibility of escalating tensions and a potential closure of the Strait of Hormuz, which could drive oil prices to record highs and significantly pressure inflation. Still, he emphasized that companies have gained experience in navigating recent crises, and that Egypt's real estate market has maintained much of its growth potential, supported by political and economic stability, as well as strong local and international demand. Real Estate Resilience and Cautious Optimism Ayman Amer, General Manager of SODIC, noted that companies have developed solid hedging strategies against sudden cost fluctuations, giving them more flexibility to absorb shocks—provided they don't persist for too long. He emphasized that the availability of construction materials remains critical and may be affected in both quantity and price due to energy-related disruptions. Despite this, he expects the Egyptian market to remain one of the most stable, with sales figures likely improving in the second half of the year. Execution Over Expansion Sherif Mostafa, CEO of IGI Developments, said that adopting cautious sales strategies and focusing on executing existing projects is the best approach for developers at this stage. He emphasized that companies have already achieved record-breaking sales over the past two years, and that 2025 and 2026 should be focused on construction and delivery. He reinforced the view that 'success is no longer measured by sales volume, but by the ability to deliver.' Mostafa advised developers to follow a clear strategy: sell only the minimum necessary to ensure liquidity and healthy cash flow, rather than chasing high sales numbers. Strategic Restraint and Currency Risks He noted that lower sales this quarter compared to last year should not be viewed negatively; rather, it may reflect a deeper understanding of the current phase. Mostafa also mentioned that most companies are factoring in an adequate level of hedging when pricing and estimating costs. However, he warned that if the dollar exchange rate reaches EGP 55, it would pose serious concerns and force companies to reassess their plans—a scenario that has not yet occurred. He also cautioned that a surge in global fuel prices or worsening supply chain disruptions could trigger a new wave of inflation and delay any expected interest rate cuts. Impact on Materials and Supply Chains Ashraf Diaa, CEO of A SQUARED Consultants, stated: 'Amid the escalating conflict between Iran and Israel, Egypt's real estate and construction sectors are bracing for potential fallout, as the war's ripple effects begin to surface across the region.' Diaa added that geopolitical tensions have triggered sharp volatility in global oil prices, increasing shipping costs and the prices of imported construction materials. Egyptian developers are already feeling the pressure, reporting notable increases in steel and cement costs—factors that could disrupt project timelines, squeeze profit margins, and prompt shifts in pricing strategies. Navigating Uncertainty 'The current phase demands caution,' said Diaa. 'We're likely to see developers revisiting delivery schedules, reprioritizing projects, and focusing on cash flow stability over aggressive sales targets.' He further noted that the situation is compounded by a slowdown in Suez Canal revenues and disruptions to regional trade, placing additional strain on Egypt's foreign currency reserves and heightening inflationary risks—key concerns for a sector heavily reliant on imports. Despite these headwinds, Egypt's property market continues to show resilience. Developers and investors are urged to remain agile—adjusting capital expenditure plans, implementing conservative sales strategies, and preparing for what could be a challenging third quarter. Push for Local Alternatives Hesham Ibrahim, Managing Director of Winvestor Developments, stated that escalating tensions—especially the threat of closing the Strait of Hormuz—are already impacting Egypt's building materials market. He noted that cement prices have risen by around 15% over the past two months due to supply disruptions, while steel prices, after dropping 20% earlier this year, have rebounded by nearly 18% amid rising shipping and insurance costs. Ibrahim added that some imported materials are becoming scarce, increasing reliance risks. Many developers are now stockpiling essential materials in anticipation of deeper supply chain disruptions. He stressed the need to reassess imported construction inputs and prioritize locally made alternatives—such as aluminum and cladding—as a sustainable strategy to reduce risk and maintain market stability. He concluded that the shift toward local products is now a strategic necessity, urging developers to adapt to fast-changing geopolitical dynamics to ensure project continuity and cost control.
Zawya
12-05-2025
- Business
- Zawya
Egypt's ministry unveils new incentives to support developers, ease market pressures
Egypt - The Ministry of Housing, Utilities, and Urban Communities has introduced a comprehensive package of incentives aimed at supporting real estate developers and addressing ongoing challenges in the property market. According to Tarek Shoukry, Chairperson of the Real Estate Development Chamber at the Federation of Egyptian Industries, a recent meeting between the Minister of Housing and chamber representatives led to the approval of several key policy adjustments in response to developer demands. Among the most notable measures is the Ministry's decision to permit the conversion of residential, administrative, and commercial units into serviced units without incurring additional fees—a move intended to help alleviate the shortage of hotel accommodations. The Ministry has also extended the validity period for operational licenses from one year to five years and approved the renewal of a reduced 15% interest rate on land installment payments for another year, spanning from May 2025 to May 2026. Additional incentives include a six-month extension for current project deadlines and a 10% increase in permitted built-up areas, helping developers absorb rising construction costs. The Ministry committed to holding regular coordination meetings with the Real Estate Development Chamber and announced the upcoming activation of the national real estate platform, with preliminary registration expected to launch soon. In parallel, Minister of Housing Sherif El-Sherbiny announced new financial relief measures for citizens with overdue payments on residential, administrative, commercial, and professional units, as well as villas affiliated with the Buildings Finance Fund. Under this initiative, a 70% waiver on late payment penalties will be granted to those who fully settle their outstanding dues. This offer will be available for three months—from June 1 to August 31, 2025. The minister emphasized that these efforts align with the Ministry's strategic vision to stimulate development and adhere to presidential directives to reduce financial burdens on citizens. Hesham Darwish, Supervisor of the Construction and Contracting Sector at the Housing Ministry and Chairperson of the Buildings Finance Fund, added that the initiative responds directly to citizen requests for more flexible payment options. He noted that clear implementation guidelines will be provided to ensure the initiative's success and support broader economic stability. Darwish also clarified that the relief applies to units involved in ongoing or preliminary legal cases—whether at the trial or appeals level—provided full payment is made in cash, including all related legal and administrative fees. However, the incentives do not extend to cases where the client has initiated legal action against the Fund unless all such lawsuits are fully withdrawn. Additionally, units, villas, or shops subject to cancellation decisions or final enforceable court rulings are excluded, in accordance with the Fund's real estate regulations and board decisions.
Zawya
10-02-2025
- Business
- Zawya
Real Estate Development Chamber supports President Abdel Fattah El-Sisi's rejection of displacement and reconstruction in Gaza
The Real Estate Development Chamber, at the Federation of Egyptian Industries, announced its full support and endorsement of the position of President Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, in completely rejecting the displacement of Palestinians and adopting the reconstruction of Gaza. The Real Estate Development Chamber announced the full readiness of the real estate development companies under its umbrella "as members of the Chamber" to work promptly and develop a plan towards the reconstruction of Gaza - if requested to do so - and to help the brotherly Palestinian people overcome the effects of the devastating war. The Chamber stressed that it helps, builds and performs all roles, whether logistical or executive, due to its large number of real estate developer members exceeding 10,000 companies from all categories. The Real Estate Development Chamber appreciated the keenness of the Palestinian brothers to return Gaza to life, which sent a message to the entire world that the Palestinian people are attached to their land and roots, do not accept displacement from their land and are keen to restore life and reconstruction. The Real Estate Development Chamber called on its counterparts, entities and bodies interested in the construction and building sector in neighboring countries, as well as civil society institutions, to cooperate with the Chamber and develop a plan and strategy to reduce the time frame for the reconstruction process in Gaza, so that cooperation will ensure shortening the implementation period of projects, so that a project that takes a month can be implemented in one day, while a project that takes a year can be implemented in one month, ensuring that a smile and stability are restored to the brothers in Gaza. The Chamber pointed out that Egypt has experience in reconstruction operations in Libya and Iraq with Egyptian expertise and workers, ushering in a phase witnessing the implementation of robust projects by Egyptian companies in those countries. The Real Estate Development Chamber stressed its clear position of standing behind the political leadership in its decisions and rejecting displacement. Under President Abdel Fattah El-Sisi's direction, Egypt's recent development experience has demonstrated the country's vast skills and competencies, which helped to expedite the completion of important, high-end development projects and infrastructure. Egypt is fully capable of taking part in the reconstruction of Gaza, not only in terms of the skills and abilities of real estate development companies and contracting companies, but also in terms of the availability of labor and raw materials, as well as the strategic location due to the short distance. This portfolio of works has given Egyptian workers and companies great expertise to expand internationally and participate in reconstruction projects.
