As we enter 2025, Egypt’s real estate market is brimming with opportunities for investors, homeowners, and holidaymakers alike. With rapid urban development, a strong focus on sustainable projects, and attractive investment returns, now is the time to explore the emerging trends and promising prospects that will shape Egypt’s real estate sector in the coming year.
Notably, the Egyptian real estate market in 2024 experienced significant shifts driven by investor interest in hospitality, tourism, and experiential spaces, along with the rising appeal of the North Coast, particularly with the launch of the Ras El Hekma project. This growing demand from both Egyptian and international buyers is expected to continue shaping the market during 2025.
Promising Prospects for the Egyptian Real Estate Market in 2025
A recent analysis by the Information and Decision Support Center of the Cabinet confirmed that Egypt has many promising opportunities in the real estate sector. With a population exceeding 100 million, the country boasts a large consumer market, offering long-term growth potential for the real estate industry. The government’s efforts to attract foreign investment and enhance private sector participation, along with increased government investment in infrastructure projects and modern cities such as the New Administrative Capital (NAC), support the development of commercial and service real estate. This has led international institutions like Fitch Solutions to predict long-term growth in the Egyptian real estate market, driven by these initiatives to boost foreign investment and enhance private sector activity.
Additionally, the ongoing development and construction of 20 new cities adjacent to existing ones will further enhance investment in the commercial real estate sector, with demand primarily focused on income-generating office and retail assets, along with increasing interest in industrial facilities.
Furthermore, Savills projects that in 2025, leasing and property management advisory services will continue to be in high demand as clients seek expert guidance to optimize their portfolios. The North Coast, bolstered by high-profile developments like Ras El Hekma, is set to remain a key focus, driving ongoing interest in the region.
According to Savills, retail spaces are also poised for strong growth over the next two years, driven by an increasing consumer preference for experiential and lifestyle-oriented environments. Developers will prioritize creating dynamic, engaging spaces that cater to evolving consumer behaviors, shifting the focus from transactional retail to immersive, memorable experiences.
Real Estate Prices Forecasts
Regarding real estate prices in 2025, developers expect prices in Egypt to continue rising in the new year, albeit at lower rates than those seen in 2024.
These expectations are driven by key economic factors, including rising inflation and interest rates, which place pressure on financing and investment costs. The real estate sector and related activities contribute 20% to Egypt’s GDP, and the residential real estate market is projected to grow to $30.34 billion by 2028, with an annual growth rate of 10.96%, according to Mordor Intelligence.
In this context, Eng. Ahmed Sabbour, Chairman of Al Ahly Sabbour Developments, stated that the Egyptian real estate market will experience strong demand due to customers’ confidence in real estate as a safe investment haven. He anticipates a new increase in real estate prices of between 25% and 30% during 2025.
Sabbour added that monetary policies will play a crucial role in determining market trends, expressing optimism about expectations of reducing interest rates by a total of 5% to 7% in the coming year, which would enhance investment activity and increase demand for real estate purchases.
Eng. Abdallah Sallam, President and CEO of Madinet Masr, indicated that the Egyptian real estate market is poised for remarkable stability in 2025, supported by several factors, most notably the ongoing demand for residential properties as a safe investment option, especially amid fluctuations in other markets.
Sallam noted that the anticipated increases in residential unit prices, ranging from 15% to 20%, are natural outcomes of the gradual rise in construction costs and the impact of inflation. He emphasized that these increases depend on the stability of monetary and financial policies, which would enhance market stability and support the growing demand, particularly in new cities experiencing increased interest.
Eng. Tarek Shoukry, Head of the Real Estate Development Chamber at the Federation of Egyptian Industries (FEI), expects real estate prices to rise by 15% in 2025, citing the increase in construction costs for three reasons: first, a 10% change in the dollar exchange rate against the Egyptian pound, leading to an approximate 5% increase in total costs; second, the trend of many contracting and labor companies participating in reconstruction projects in Libya and Iraq, as well as massive urban expansion in Saudi Arabia, which raises wage costs; and third, the rise in building material prices, influenced by increases in fuel and gas prices.
As we move into 2025, Egypt’s real estate market is poised for significant growth, driven by urban development and a strong focus on sustainability. The increasing demand for hospitality and experiential spaces, particularly along the North Coast, presents lucrative opportunities for investors and homeowners alike. With projections indicating continued interest in leasing and property management services, alongside a favorable consumer market, the sector is expected to thrive. Although real estate prices are anticipated to rise at a more measured pace due to economic factors, the overall outlook remains positive. Government initiatives aimed at fostering foreign investment and infrastructure development further bolster confidence in the market’s stability and long-term potential.