Savills Egypt: Ras El Hikma deal poised to propel North Coast into Egypt's second-largest real estate market

Savills Egypt، the local office of the leading global real estate advisor، revealed its insights on the anticipated transformative impact of the Ras El Hikma development project on the North Coast of Egypt.

Savills expects the Ras El Hikma project to be a game-changer for Egypt’s North Coast، solidifying its position as the second-largest real estate market in Egypt، only after East Cairo. The project signifies substantial backing from the Arab world، particularly the UAE، whose proven expertise in luxury real estate، tourism، and entertainment is expected to significantly contribute to the project's success.

A thriving year-round destination

"This initiative aligns perfectly with the government's long-held vision of transforming Egypt’s North Coast into a thriving year-round destination،" said Catesby Langer-Paget، Head of Savills Egypt.

"The project is expected to foster healthy competition among developers، ultimately enhancing the overall offerings and appeal of the region as it advances its infrastructure to ensure it is geared to receive higher-spending tourists،” Langer-Paget added.

The development also presents an opportunity to export Egyptian real estate expertise، supporting the government's vision for the sector. Furthermore، the project prioritizes sustainable tourism development، aiming to attract 8 million tourists with higher spending habits. This shift signifies a move away from the traditional low-cost، all-inclusive model، and aligns with the Ministry of Tourism and Antiquities' (MoTA) efforts to diversify the tourism landscape.

Average sale prices

The North Coast is currently underserved in terms of hotel offerings with only 26 4- and 5-star hotels operating، around 4،500 keys.

Savills Egypt reports that average sale prices in the North Coast have already seen significant increases، with premium developments experiencing a surge of 20-30% in 2022 and 50% in 2023. The Ras El Hikma project is anticipated to further propel property values in the region.

Beyond tourism، the Ras El Hikma project is expected to create significant job opportunities for Egyptians، supporting the government's vision for the New Alamein City and fostering economic growth throughout the region. The long-term partnership between Egypt and the UAE established through this project signifies collaborative growth and has the potential to attract further investments in other sectors across Egypt.