Egyptian homebuyers looking for second homes in the Red Sea and villas and townhouses in Cairo’s prominent green communities will have a range of options to choose from at this year’s Cityscape Egypt, which opens its doors today (31st March)

30th March, 2017, Cairo, Egypt: New villas and townhouses in Egypt’s most prominent neighbourhoods, homes along the Red Sea coast, and modern apartments across all price points – will be on show from the country’s foremost developers at the 6th edition of Cityscape Egypt, which opens its doors today (31st March).  

Running until April 3rd at the Cairo International Exhibition Centre, Cityscape Egypt opened its doors to thousands of visitors, investors and potential homebuyers. This year’s show includes over 90 exhibitors, from across the property spectrum, who are highlighting projects that will transform the Egyptian landscape.

The exhibition comes off the heels of a successful two-day Cityscape Egypt Conference. Real estate professionals, researchers, urban planners, government officials and experts from across the property spectrum came together to discuss and debate the sector’s most central issues and provide insight on trends and drivers from Egypt’s homebuyers.

Mansoor Ahmed, Director of Development Solutions, Healthcare, Education and PPP at Colliers MENA – the Conference’s Gold Sponsor – revealed just how popular Egypt’s second home market is in his presentation at the Cityscape Egypt Conference.

Ahmed examined the current market supply, demand dynamics, affordability and key desirable holiday home spots in Egypt. Unlike other popular second home destinations such as the Seychelles, Morocco, Malta, France and Spain, Egypt’s second home market is not dependent on international investors and appeals primarily to Egyptians, with the market comprising only 2% foreign investors.

The increase in supply for second homes in Egypt – said Ahmed – is along the coastline, which is the most popular destination for holiday makers who prefer staying in their own homes instead of renting a unit or a hotel.

The most popular hotspots for second homes are the Red Sea, South Sinai, Northwest Coast and Ain Sokhna. These coastal properties will also be a major feature at this year’s Cityscape Egypt and will be touted by several developers, including PACT, Dar Al Maghraby, and this year’s Associate Sponsor, Misr Italia Properties who are highlighting Mousa Coast, a new mega-development located on the Red Sea.

According to Colliers, Egypt’s coastline has historically been successful in attracting buyers. Over the past 11 years, the number of vacation homes have increased by approximately 90%, reaching approximately 65,000 units by the end of 2016.

The primary drivers for buyers looking at this market are price, location and attractive payment terms – which will be available for visitors at this year’s four-day exhibition. In addition, Colliers maintains that chalets and apartments are in high demand, with most buyers looking for three-bedroom units.

In his presentation: The consumer perspective: Tenant and buyer demands, Amad Almsaodi, CEO of Aqarmap.com Egypt, told delegates that buyers consider transportation, retail outlets, schools and proximity to the highway as neighbourhood priorities. In addition, compound amenities, such as green areas rank high on buyers’ lists.

Ahmed agrees: “As the market has developed, so has the sophistication of the buyers who look to extend either their stay or rental returns from their investment,” commented Ahmed. “To attract these buyers, developers need to look beyond the limited retail and F&B offerings, creating pull factors; these include boarding schools, hospitals and clinics, educational facilities, retirement communities, fitness and skill retreats and rehabilitation centres,” concluded Ahmed.

Yougov, an internet market-based research firm and Cityscape Egypt’s research partner for this year, says in its latest research on the market, 81% of buyers looked at easy access to highways, followed by healthcare facilities and schools.

“Our exhibitors will be speaking directly to this demand from Egyptian homebuyers,” says Tom Rhodes, Exhibition Director at Cityscape Egypt. “Research from the Conference comes at a pivotal moment; we’re seeing Egyptians look for communities not just houses as they widen their property searches.”

Appealing to these buyers, exhibitors like Hyde Park, Palm Hills, ARDIC and Talaat Moustafa Group will be highlighting communities that cater to these buyers’ needs, offering vast green space and amenities for families, which includes proximity to schools and healthcare facilities.

Despite the economic climate this year, the residential sector saw new developments in Q1 of 2017, according to JLL, whose Head of Research for the MENA, Craig Plumb, was one of the Conference speakers.

Per JLL, several new projects across 6th of October City and New Cairo were announced earlier this year. Following the increase in unit prices in EGP terms, many developers are now offering more lenient and attractive payment plans to alleviate the effect of the decrease in purchasing power.

With the opening of the Cityscape exhibition, developers are showcasing projects from 6th October City and New Cairo and will also offer payment plans and special promotions for specific developments.

Local demand for residential units continues to be strong through Q1 2017 and is expected to remain steady, claims the property consultant. There has been strong interest in the first tenders from Cairo New Capital City. Over 200 companies have responded to these tenders including Sodic and TMG. “This significant interest reflects the demand to acquire land for new residential projects,” said JLL.

The show this year will include a 90-strong exhibitor list, with developers from all property sectors.

Some of the exhibitors at this year’s event include: Al Arabia Real Estate Development (ARCO), Palm Hills, PACT, Aloula Tameer For Mortgage Finance, Aristo Developers, Beta Egypt for Urban Development, , Capital Group Properties, Egyptian Engineering Development and Real Estate Investment, El-Batal Group, Emaar Misr, Invest4Land (API Investment), Madaar Development, Pandora Investments Public Ltd-Leptos Estates, Rooya Group, Talaat Mostafa Group Holding, Tatweer Misr, Trends Real Estate, and Wadi Degla Developments to name a few.

About Cityscape Egypt

Cityscape Egypt is owned by Informa Exhibitions. Informa Exhibitions delivers over 220 trade and consumer exhibitions annually across the globe. Cityscape first took place in 2002 in Dubai and since then, it has grown to be the largest real estate event brand globally, with events taking place across the GCC, Middle East, Asia and Turkey. Since its launch, Cityscape has welcomed over 500,000 real estate professionals and investors from over 160 countries.

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