Real estate developers are optimistic about a strong sales season in 2024, particularly in the North Coast region. They anticipate that Ras El Hekma projects will account for the majority of these sales, driven by the announcement of the development of Ras El Hekma City with global standards and an Egyptian-Emirati partnership. Developers emphasize that early purchases in these projects guarantee higher returns for customers as the city begins construction and projects emerge within it.
Increased Demand from Gulf Customers
Developers expect a surge in demand from Gulf customers to purchase units in the North Coast and Ras El Hekma during the current summer season. This demand began in the summer of 2023, which witnessed high purchase rates in the North Coast and New Alamein from Gulf and Egyptian nationalities. According to a report by The Board Consulting, the top 20 real estate developers achieved sales of EGP 145 billion in the North Coast during the first nine months of 2023. This figure is expected to rise during the current summer season.
Summer Season: Peak Sales and Competition
Engineer Mohamed El Bostani, Chairman of Al Bostani Real Estate and Tourism Development Company, stated that the lion’s share of real estate market sales occurs during summer. This is the peak season for market sales and witnesses strong competition between real estate companies and the launch of new projects in the North Coast. In recent years, there has been a noticeable increase in the volume of demand for purchases in the North Coast.
Ras El Hekma: A Prime Location for Investment
Dr. Tarek Eid, Managing Director of Arab Investment House, the real estate arm of the Arab Kuwaiti Group, expects the emergence of Ras El Hekma City and the start of its development to impact the development mechanism for other existing or future projects. He anticipates that there will be a variety of real estate products from real estate companies to suit both the targeted foreign customer and the local customer. He also expects more hotels and hotel projects to appear in the coming period.
Price Increases Expected
Ayman Sami, Director of JLL Egypt, expects strong demand for Ras Hekma projects and those close to the new Ras El Hekma City during the new summer season. He expects real estate companies to offer more in this area during the summer. He also expects price increases in the North Coast during the current year, but not at the same rate as the past year.
