Luxury Villa in New Cairo Priced at Nearly £1 Billion Raises Questions About Egypt's Real Estate Market

Upon entering a prestigious compound established in the 1990s, one might encounter a villa with a conventional design. However, the real surprise lies in the price tag displayed:

886 million Egyptian pounds.

This staggering amount raises a critical question:

Are property values in Egypt truly declining, or have certain properties transcended conventional market logic?

This villa is not a fictional scenario but a reflection of the evolving landscape of the Egyptian real estate market. Here, homes have shifted from mere shelters to rare investment assets, akin to a hidden treasure on an artificial lake in the heart of Katameya.

* From Complete Developments to Individual Villas

Just two years ago, this sum could have funded an entire residential compound or represented the total sales for a small to medium-sized development firm.

Today, it merely reflects the price of a single villa.

Rapid economic changes, the depreciation of the pound, and an influx of capital into real estate as a safe investment have altered the market dynamics.

Now, it is not just bricks and mortar that determine value, but factors such as rarity, location, and social prestige.

* Katameya Heights: Where Exclusivity Drives Value

The villa in question is located in Katameya Heights, one of New Cairo's most established gated communities.

The project, which spans approximately 1.5 million square meters, began occupancy in 1997.

Owned by Katameya Heights Real Estate Development Company, linked to businessman Mohamed Alaa Aoun, the compound is renowned for its privacy, housing the children of former President Mohamed Hosni Mubarak and a select group of elite businessmen and ex-ministers.

* Understanding the High Price of Villas

According to Mana Maher, a real estate marketer at All90, the pricing of villas in Katameya Heights is influenced by several key factors, primarily:

• Location within the compound

• View (overlooking an artificial lake or golf course)

• Rarity of distinguished villas

She notes that villa sizes range from 1,300 to 1,600 square meters, with prices for completed villas varying from $2.3 million to approximately $18 million, depending on location and size.

The most expensive villa boasts a total area of about 3,000 square meters, with a net construction area of 1,500 square meters, and offers a direct view of the artificial lake.

Conversely, villas with views of the golf course are extremely limited.

Maher adds that semi-finished villas in the compound are priced between $6 million and $8 million, often situated in areas without direct views. Villas in the nearby Katameya Dunes project are available at lower prices, starting from $3 million and reaching up to $6 million.

* Rental Prices in Katameya Heights

Real estate marketer Mohamed Salah confirms that Katameya Heights commands the highest rental prices in the Fifth Settlement area, with villa rents ranging from $6,000 to $8,000 monthly, depending on size and location. Apartment rents start at around $3,000 monthly.

* Market Trends: An Upward Trajectory

Data from Property Finder indicates that the average residential price per square meter in New Cairo reached approximately 105,000 pounds as of last October, compared to about 71,000 pounds in West Cairo and other areas of the capital.

Year-over-year comparisons show:

• The average price per square meter in New Cairo increased from 85,000 pounds

• And in West Cairo, it rose from approximately 66,000 pounds

This trend reflects ongoing price pressures, particularly in high-demand areas.

* The Importance of Rarity

Real estate expert Mohamed Khattab summarizes the situation by stating that the high prices of luxury villas are not primarily linked to construction costs but to factors such as:

_ Large land areas

_ Rarity of the product

_ Reputation of the developer

_ Quality of compound management

_ Social composition of residents

He emphasizes that the resale market does not follow strict equations but is influenced by intangible values, making properties in this segment rare assets with significant investment and symbolic value.

* Conclusion

While some analysts discuss a slowdown in the real estate market, the existence of a villa priced at nearly a billion pounds in Katameya Heights suggests a different narrative:

The market is not declining; rather, it is becoming polarized.

While prices may stabilize in certain segments, the demand for rare and luxury properties continues to rise, reinforcing the notion that rarity, rather than cost, is the defining factor in the current Egyptian real estate market.