Egypt’s real estate market is poised for continued growth in 2025, with developers forecasting price increases, though at a slower rate than in 2024. These expectations are driven by key factors such as high inflation rates and interest rates, which influence financing and investment costs. With demand for housing and commercial units remaining strong, the real estate market is expected to maintain its position as a safe haven for investors. This article explores the expected trends, challenges, and opportunities in Egypt’s real estate market for 2025.
Expected Price Increases
Experts predict that real estate prices will increase by 10% to 30% in 2025, depending on economic fluctuations. While the reduction in construction input costs, such as steel, may alleviate some financial pressures, inflation and financing policies will remain decisive in shaping property prices.
According to Ahmed Sobour, Chairman of Al Ahly Sabbour for Real Estate Development, property prices are expected to rise between 25% and 30% in 2025. He expressed optimism that potential interest rate cuts could boost investment activity.
Real Estate as a Safe Haven
Real estate remains a preferred investment option, particularly during economic uncertainty. Unlike other sectors, property investments often provide stability and a hedge against inflation. This has made real estate an attractive choice for individuals and institutions seeking long-term value retention and growth.
Demand in New Cities
Abdullah Salam, CEO of City Edge Developments, predicts that demand for properties in new cities like Sheikh Zayed will continue to rise, stabilizing the market. He estimates price increases in these areas to range from 15% to 20%, driven by higher construction costs.
Sheikh Zayed, known for its modern infrastructure and well-planned communities, has become one of the top destinations for real estate investment. The area offers a mix of residential, commercial, and recreational facilities, attracting both homebuyers and investors.
Challenges in the Real Estate Market
Despite the optimistic outlook, the real estate sector in Egypt may face significant challenges in 2025. Mohammed Al-Asar, Chairman of Margins Real Estate Development, highlights economic pressures as a key concern. He anticipates price increases of at least 30% due to sustained demand for real estate as an investment vehicle.
Economic challenges, including inflation and fluctuating interest rates, could impact both developers and buyers, requiring careful financial planning and strategic decision-making.
Sheikh Zayed: A Leading Investment Destination
Sheikh Zayed remains one of Egypt’s most attractive areas for real estate investment. Its prime location, comprehensive services, and modern urban planning make it a top choice for families and investors alike.
The area offers an ideal living environment, combining green spaces with integrated services such as schools, hospitals, and shopping centers. Residential and commercial projects in Sheikh Zayed are rapidly expanding, offering a variety of housing options to cater to different income levels.
Government Incentives to Support Growth
Developers stress the importance of government support to sustain growth in the sector. Alaa Fikry, Chairman of Beta Egypt for Urban Development, emphasizes the need for initiatives such as affordable land pricing and financing facilities to boost property sales.
Government efforts include tax incentives and streamlined property registration processes, which improve the investment climate. Competitive land pricing will enable developers to offer more affordable units, contributing to market stability.
Growth Prospects in Other New Cities
In addition to Sheikh Zayed, areas like the New Administrative Capital and New Cairo are experiencing significant real estate growth. These cities attract substantial investments due to their advanced infrastructure and premium services.
These emerging cities are expected to play a vital role in ensuring sustainable growth for the real estate sector, catering to the increasing demand for modern, well-equipped residential and commercial spaces.
Importance of Foreign Investments
Egypt’s real estate market is attracting growing interest from foreign investors amid global economic volatility. Real estate companies are working to attract international investments by offering residential and commercial units that meet global standards.
Government initiatives, such as property export programs, are expected to play a significant role in boosting foreign investments. These initiatives aim to position Egypt as a regional hub for high-quality, competitively priced real estate.
Egypt’s real estate market is set to thrive in 2025, with moderate price increases and strong demand for properties in new cities like Sheikh Zayed. Financial policies and construction costs will be key factors shaping market dynamics. Enhancing mortgage financing and regulating the market will be essential for supporting this vital sector.
Additionally, the focus on new cities and attracting foreign investments will reinforce Egypt’s position as one of the most appealing real estate markets in the region. Sustained collaboration between the government and developers will ensure a balance between supply and demand, driving growth in the years to come.