In a year marked by global growth slowdown and rising capital costs, the Egyptian real estate sector continued to record remarkable figures, affirming its position as one of the most resilient sectors within the local economy. However, the market’s strong performance conceals deep structural shifts that are reshaping it and establishing new rules for the coming period.
2025 was not merely an extension of a previous growth wave; it served as a test of the market’s ability to adapt to a more stringent economic environment. High inflation, sharply increased construction costs, and pressure on purchasing power pushed the market to recalibrate itself—not only in terms of pricing but also in development models, sales mechanisms, and the definition of real estate value.
Data indicate that the market maintained strong sales momentum, driven by real estate’s role as a hedge and by demand from Egyptians living abroad and regional investors. However, this momentum was uneven: projects capable of delivering clear operational value benefited, while the gap widened between assets with strong fundamentals and those historically reliant solely on price appreciation.
Simultaneously, 2025 witnessed a more prominent government presence in market regulation, through legislation and measures aimed at enhancing transparency and stabilizing the market, striking a balance between sustaining investment and protecting market stability. This regulatory shift, along with evolving investor and buyer behavior, indicates a gradual transition from a market driven by rapid expansion to one guided by long-term considerations.
From this perspective, the sector’s 2025 performance cannot be read as a conventional growth story but as a recalibration phase that redefined risks and opportunities, laying new foundations for competition that will directly influence market trends in the coming years.

Strong Sales Despite Economic Challenges

The Egyptian real estate sector recorded notable performance in 2025, with leading developers achieving sales of approximately EGP 290 billion in Q1, compared to EGP 235 billion in the same period of 2024—a growth of nearly 23%. Around 18,500 residential units were sold at an average price of EGP 15.7 million per unit, reflecting continued strong demand despite economic pressures.
Despite rising prices, the market maintained relatively high activity levels, supported by a broad segment of clients trusting real estate as a long-term hedge. Flexible payment plans offered by developers helped absorb price shocks without significant declines in demand.

Domestic and International Demand

The market witnessed a notable rise in the share of non-local buyers, reflecting the sector’s growing regional and international attractiveness. Official data indicate that purchases by Egyptians abroad, Arab, and foreign investors accounted for approximately 30–35% of total real estate sales, highlighting increasing interest in Egypt’s real estate market and its growth opportunities.

Flexible Payment Systems: The Key Driver

Flexible payment systems emerged as a major driver of demand amid inflationary pressures and rising living costs. Many developers extended installment periods to 8–10 years, with down payments ranging from 5% to 10% for some projects, broadening the customer base and sustaining strong sales levels.
Market estimates show that direct installment plans now account for over 70% of purchases in certain projects, compared to lower percentages in previous years. This reflects a shift in consumer behavior favoring financial flexibility over immediate delivery or total unit price.
Mortgage financing also grew significantly in the first five months of 2025, reaching EGP 16.6 billion—an 85% increase year-on-year—highlighting the financial sector’s expanding role in supporting real estate activity.

Government as a Market Regulator

One of the most prominent features of 2025 was the government’s stronger presence in regulating the real estate market, through a set of decisions and facilitation measures aimed at balancing investment support with market stability.
The Ministry of Housing and New Urban Communities introduced several measures to support citizens and investors and ensure market stability, including:
Exemptions from late payment penalties of up to 70% for full settlement, 50% for half settlement, and an additional 10% for early payment within a set period.
Reduced interest rates on land installments for developers to 15%, extended project execution deadlines, increased building areas, and the option to convert units into hotel units without additional fees.
Support for tourism development companies through installment rescheduling and grace periods, including companies in Taba and Nuweiba receiving exemptions of 6 months to a full year.
A 50% reduction in transfer fees for land across new cities.
Continuation of investment incentives for new cities for an additional year until 2026, with fixed interest rates of 15% on developer and investment project installments.
These measures helped alleviate financial burdens on citizens, support real estate investment, and encourage developers and tourism development companies to complete their projects, making 2025 a pivotal year in the history of Egyptian housing.

2026: Phase of Stability and Balanced Growth

With the start of the new year, the market is expected to enter a phase of gradual stabilization and price correction after previous waves of increases, alongside a focus on genuine demand for residential units and investment projects in new cities and key areas.
Falling interest rates and ongoing government facilitation are expected to support mortgage financing and stimulate purchases, while local and foreign investments in coastal and administrative sectors maintain momentum. All of this strengthens balanced growth and creates new opportunities for developers and investors in 2026, making the year a key milestone for market stability and expanding investment prospects.

Future Outlook: Market Trends 2026–2027
Entering 2026, the market is experiencing relative stability and gradual price correction, with key trends including:
Demand for high-quality units, particularly in new cities and prime areas, focusing on operational value and integrated services.
Continued prominence of flexible financing and long-term installments, enhancing buyers’ purchasing power and distinguishing responsive developers.
Regional and foreign investment, especially from Egyptians abroad and Arab investors, with a focus on coastal cities and mixed-use projects.
Mixed-use projects remain the most attractive option for clients seeking comprehensive value.
Digital transformation and increased market transparency, aiding better investment decisions and building sector confidence.
Market experts indicate that the strong performance of the Egyptian real estate sector in 2025 does not signal the peak of a growth cycle but rather marks the beginning of a more mature and disciplined phase. While sales remain strong, success is no longer solely based on the volume of offerings and speed of sales; it now relies on delivering real added value, managing financing risks prudently, and adapting to increasingly selective and aware investors.
Experts predict a clear reorganization of the market map in the coming years, with quality, financial discipline, and operational transparency becoming decisive factors in determining which players can continue and grow. In a market no longer equally accommodating to all, success will favor developers committed to governance and capable of aligning their products with genuine long-term demand, rather than short-term speculation.