Cairo, Egypt — Egypt’s recent economic recovery and currency devaluation have led to a notable influx of foreign real estate investors, according to Omar El Hamamsy, CEO of Orascom Development, the nation’s largest waterfront developer. This trend is driving up property prices, particularly in secondary and tertiary markets.
El Hamamsy highlighted that growth in population and wealth among certain socioeconomic segments is increasing demand in major cities like Cairo and Giza. Recent data from the real estate portal Aqarmap shows a significant surge in the real estate price index, which jumped approximately 40 percent in the first quarter of 2024, following a 22 percent increase in the previous year.
Despite concerns about a potential slowdown in local demand, developers remain optimistic about sustained interest from foreign buyers, particularly in waterfront communities, for the next five to ten years. “On the Red Sea, half of our sales are coming from outside Egypt, which will continue to drive price evolution and demand in the overall market,” El Hamamsy stated.
Orascom Development, which boasts a land bank of over 100 million square meters and operates 11 projects across seven countries in the Middle East, North Africa, and Europe, reported impressive financial results for the first half of 2024. Revenues increased by 20 percent, profits by 36 percent, and real estate sales rose by 59 percent compared to the previous year.
El Hamamsy noted a growing interest not just from retail investors but also from sub-developers looking to acquire large plots of land for building their own communities, with notable activity observed in Montenegro and Egypt.
As a company known for transforming undeveloped areas along the Red Sea into integrated communities like El Gouna and Makadi Heights, he emphasized that the challenge lies not in the physical infrastructure but in the strategic development of communities.
