North Coast: A Region Ready For Year-Round Operations

(MENAFN- Daily News Egypt) The Egyptian government is taking strategic steps to transform the North Coast into a year-round destination, moving beyond its traditional status as a seasonal hotspot. This involves extensive infrastructure improvements, encouraging the development of essential services such as healthcare, education, and hospitality that can support a continuous influx of residents and tourists.

By focusing on providing these key services throughout the year, the government aims to make the North Coast a fully operational region, attracting not only summer visitors but also long-term residents and off-season tourists. Developing areas like Ras El-Hekma is a significant part of this vision, with projects designed to ensure the region is equipped with sustainable resources, modern facilities, and amenities catering to leisure and daily living needs.

Additionally, developers in the region have responded by extending their operations, ensuring residential communities and hotels remain functional even in the winter months. This shift aims to stimulate local economies, enhance tourism, and position the North Coast as a premier year-round destination in Egypt.

Providing crucial services

Hisham El-Danasoury, CEO of Naia Developments, stated that the government has taken serious steps to make the North Coast a year-round destination. He noted that some real estate developers, who own residential communities and hotels in the area, have extended their services until the beginning of the winter season.

El-Danasoury emphasized the importance of providing essential services, especially hotels, which should operate year-round, and crucial services like high-quality medical and educational facilities. He also explained that the development of the Ras El-Hekma area will significantly contribute to making the North Coast a fully integrated, year-round destination.

Market Potential

Mohamed Abdallah, the CEO of DEN Real Estate Consultancy, stated that the biggest challenge to operating the North Coast year-round is the winter weather, which is unsuitable for Egyptians but favourable for Europeans. Therefore, a good promotional strategy is needed to attract these tourists. He noted that offering non-seasonal services, such as education, has contributed to attracting families to settle in the area.

He added that the North Coast has seen an increase in sales this year, especially among Egyptians living abroad and Europeans from countries like Belgium, France, and Italy, compared to previous years. This is seen as a guarantee for the year-round operation of the region.

Meanwhile, Ahmed Zaki, CEO of The Board Consulting, which specializes in real estate studies, believes that multiple ideas could be implemented to make the North Coast an attractive year-round destination, not just during the summer season. Among these ideas are the establishment of duty-free zones and the provision of factories and real job opportunities, especially since the North Coast enjoys suitable weather for more than ten months of the year.

Not for destitute

Zaki said that the North Coast is known for its high-priced resorts, making it inaccessible to all social classes. However, he emphasized that the region has the potential to transform into a comprehensive tourist destination that caters to all segments of society, similar to the French cities of Nice and Cannes. This can be achieved by enhancing collaboration between government projects and the private sector, as well as establishing a mortgage system to finance real estate units and encourage purchases in the North Coast.

Zaki predicted that property prices in the North Coast would stabilize unless there is a significant movement in the dollar exchange rate. He noted that prices will not increase as they did in the first months of the year when the number of new developments doubled. He also pointed out that Talaat Moustafa Group, through its new project SouthMed, has doubled the number of real estate offerings in the North Coast compared to last year, leading to a significant increase in the number of available units in the area.

30 years to afford property

According to prices on the Property Finder platform, the lowest price for an apartment in the Sidi Abdel Rahman area, North Coast, has reached EGP 5m ($103,000 ).

According to World Bank data, the average annual income for an Egyptian citizen was $3,512 in 2023, compared to $4,295 in 2022. Additionally, the growth rate of GDP per capita decreased to 2.2% in 2023 from 4.9% in 2022.

Based on this data, an average Egyptian citizen with an annual income of $3,512 would need approximately 30 years, without any living expenses or additional savings, to afford the least expensive unit on the North Coast priced at EGP 5m ($103,000 ).

Luxury determines price

Mustafa Abdel-Fattah, a marketing research consultant, stated that three key factors influence pricing for businesses and service providers, such as cafes and restaurants, particularly in areas like the North Coast.

Financial Aspect: This includes the cost of managing the venue. Rent on the North Coast is among the highest in Egypt, and labour costs are elevated due to the need to import staff, provide housing, and offer higher salaries. Additionally, the lack of local supply chains increases daily shipping costs for products, especially fresh items.

Marketing Aspect: Abdel-Fattah noted that investors on the North Coast target high-income clients, including expatriates and wealthy Arabs, and set prices that reflect the desired level of luxury. High prices mirror the exclusivity of the location and the financial capability of its patrons.

Seasonal Factor: Pricing is also influenced by the short summer season (3-4 months), which means operating costs are concentrated within this period, increasing consumer prices. Companies aim to achieve suitable profits considering both the costs and the seasonal nature of the business.

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