Top 10 Developers Revealed with 88% Increase in Sales Compared to 2022 During the First Six Months

 According to “The Board Consulting” half-year report, the top 10 real estate developers achieved total sales exceeding EGP 168 bn, marking 88% increase compared to last year during the same period.

The significant sales increase is mainly driven by the EGP devaluation against the USD, as people seek to secure current capital through more reliable investment options; while leveraging from price appreciation.

Ahmed Zaki, Managing Director of The Board Consulting, commented: “It is interesting to see how the real estate market reacts to economic downturns and continues to show remarkable resilience and adaptability despite devaluation”.

He added: ” Many people are now investing in real estate as a secure option, with the North Coast being the most attractive destination due to its best ‘ROI’ on rental; and also due to its expected price increase after purchase”.

He concluded:”It’s worth mentioning however that the total 168 bn sales of the first half year in 2023 is generated in the following priority order: East Cairo, North Coast and finally West Cairo”.

Egypt’s top 10 developers for the first half of 2023 were led by Talaat Mostafa Group  with EGP 51 bn in sales; of which EGP 21 bn was generated in quarter 1; and EGP 30 bn in Q2, taking the market by surprise.

Naguib Sawiris’s Ora maintains its second place for the second quarter in a row with total sales of EGP 25 bn; led by its premium niche projects, with Solana and SilverSands being the most successful in this period.

Palm Hills, on the other hand, comes third with EGP 17 bn focusing on West Cairo projects and new phases in Badya projects. Strong brand name, competitive pricing and extended payment plans were contributing factors to its sales figures.

Founders, a joint venture between Ahly Sabbour and Hyde Park, came forth with  EGP 13.4 bn filling a market gap with its ‘ready to deliver” units offering competitive pricing scheme; while City Edge ‘ready to deliver” units in the new Administrative Capital and recently launched (V40) in New Cairo significantly contributed to its EGP 13.3 bn sales and its 5th place ranking.

Tatweer is sixth on the list with EGP 12 bn; with Q2 alone generating almost EGP 9bn due to project SALT in the North Coast, contributing with more than %50 of total sales in the first half of the year.

With EGP 9.6 bn, Mountain View comes in seventh place, and continues to maintain the same sales pattern led by its projects in West Cairo, which contribute to more than %60 of its total sales in this period. Mountain View also recently launched its North Coast project (LVLS), and is expected to have high sales growth in Q3.

Landmark for Real Estate ranks eighth with EGP 9.3 bn in sales, driven by its flagship project ‘One Ninety’, followed by its latest luxury residential and commercial ‘Stei8ht’; showing its offering diversity of residential and commercial units.

At ninth place, SODIC generated EGP 9.2 bn in sales. SODIC’s collaboration with SAFI group on the acquisition of a new 440 acres land showed significant sales performance in Q2.

NEWGIZA concludes the top 10 list with EGP 9 bn, driven by Seashell Playa which contributes with more than 60% to its sales. Following its recent project launch (Playa Ras El Hikma) in the North Coast, NEWGIZA is expected to be one of the  top selling developers in the North Coast.

Yasser Ezz El-arab, Board Member at The Board Consulting, said:” Total sales in the North Coast last year [2022] generated EGP 77 bn; while this year sales in the North Coast is expected to exceed EGP 100 to EGP 120 bn “.

Ahmed Nazmy, Chairman at The Board Consulting, commented: “Despite the different developers’ strategies with some being more conservative than others, it was interesting to see that the North Coast is leading with unprecedented project launches – despite economic difficulties, driving developers to pursue more lands”.

Nazmy Added: ” the study also shows that the increased cost of construction materials led to price increase of 25% – 50% on new launches, causing a buying rush to secure units against further price hikes”. he concluded: “Finally, expending to the GCC and Saudi Arabia is becoming a general theme on almost all the developers’ agenda”.

The study continues to highlight insights on other key developers outside the ‘Top 10 list’.

For the first time Emaar is not in the top 10  due to its cautious sales approach, achieving total sales of EGP 8.85 bn. In July however, Emaar generated EGP 10 bn following its latest launch of “Soul” North Coast project only.

With its wide diversified projects across Egypt, Saudi Egyptian Developers[SED] achieved EGP 8.8 bn of sales, driven by its remarkable “Marina M8” with a sales value of EGP 4 bn, again highlighting the appetite of customers for the North Coast area.

Orascom has achieved almost EGP 7.7 bn across its projects in West Cairo and the Red Sea, with O West leading its sales figures followed by El Gouna.

Misr Italia, which was in the top 10 list in the first quarter, slowed down in the second quarter despite its successful launch “Solaire” in the North Coast, contributing to

EGP 4 bn.

Madinet Masr successfully maintained its sales performance to reach EGP 7 bn in sales, as they also took positive steps in launching their new project “Zahw” in Assyout.

Al-Ahly Sabour generated total sales of EGP 6.7 bn, doubling their sales in comparison to the same period last year.