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Egypt's property market is experiencing unprecedented growth with residential prices surging 10-30% annually and foreign investment reaching new heights.
As of September 2025, Cairo's premium residential areas command EGP 24,000-27,600 per square meter, while coastal cities like North Coast reach similar levels, making Egypt one of the most dynamic property markets in the MENA region.
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Egypt's property market shows strong growth potential with forecasted annual price increases of 10.9-11% through 2030, driven by rapid urbanization and government mega-projects.
Rental yields average 6.8-7.9% in Cairo, outperforming regional competitors, while foreign investment continues to strengthen despite regulatory limits.
| Market Metric | Current Status (Sept 2025) | Forecast/Trend |
|---|---|---|
| Cairo Prime Areas Price/sqm | EGP 24,000-27,600 (USD 500-570) | 10.9% annual growth to 2030 |
| Alexandria Price/sqm | EGP 7,300 | Following national growth trends |
| North Coast Price/sqm | EGP 21,700-26,100 | Strong tourist-driven demand |
| Average Rental Yield | 6.8-7.9% (Cairo) | Stable, outperforms region |
| 5-Year Price Growth | 100%+ in prime locations | Continued strong appreciation |
| Mortgage Rates | 24-26% (3-8% subsidized) | Following CBE monetary policy |
| Annual New Units | 30,000+ nationwide | Increasing with new city projects |
What are the current average prices per square meter for residential properties in Cairo, Alexandria, and coastal cities?
As of September 2025, Egypt's residential property prices show significant regional variations with Cairo's premium areas commanding the highest rates.
Cairo's most prestigious neighborhoods, particularly in the New Administrative Capital, reach EGP 24,000-27,600 per square meter, equivalent to approximately USD 500-570. New Cairo areas like the 5th Settlement and Sheikh Zayed maintain slightly lower but still premium pricing at EGP 23,800-24,900 per square meter.
Alexandria presents a more affordable option at EGP 7,300 per square meter, representing roughly one-quarter of Cairo's prime area prices. This significant price differential reflects Alexandria's different market dynamics and lower demand pressure compared to the capital.
The North Coast and other coastal cities command premium pricing at EGP 21,700-26,100 per square meter, driven by tourism and second-home demand. Hurghada's waterfront properties can reach exceptional levels of EGP 41,000 per square meter for prime beachfront units.
These prices represent the current market reality for Egypt's residential property landscape.
How have property prices in Egypt changed over the past 5 years in percentage and absolute terms?
Egypt's property market has experienced dramatic price appreciation over the past five years, with annual growth rates ranging from 10-30% per year between 2020-2025.
The most significant acceleration occurred in 2024-2025, primarily driven by inflation and Egyptian pound devaluation. Total nominal price expansion over the five-year period exceeds 100% in most prime locations, representing a doubling of property values.
Some Cairo and North Coast districts witnessed extreme price movements, with per square meter costs rising from EGP 7,000 in 2020-2021 to over EGP 60,000-200,000 for luxury properties in 2025. New Cairo specifically saw prices increase from approximately EGP 10,000-15,000 per square meter in 2023 to current levels of EGP 24,000-27,000 per square meter.
This represents one of the most significant property price appreciations in the MENA region during this timeframe. The growth has been driven by currency devaluation, inflation hedging behavior, population growth, and increased urbanization.
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What is the forecasted annual price growth rate for residential and commercial properties over the next 3 to 5 years?
Egypt's property market is projected to maintain strong growth momentum through 2030, though at more moderate levels than recent years.
Residential properties are forecast to achieve a compound annual growth rate (CAGR) of 10.9-11% through 2030. This sustained growth projection reflects continued urbanization, population expansion, and government-backed new city developments creating ongoing demand pressure.
Commercial properties, particularly prime office and retail spaces in the New Administrative Capital and established commercial zones, are expected to grow at 8-10% annually. The commercial sector's slightly lower growth rate reflects different supply-demand dynamics and longer development cycles.
Key growth drivers supporting these forecasts include Egypt's rapid population growth of 1.5 million new residents annually, with 60% of the population under 30 creating sustained housing demand. State-backed mega-projects and new city developments will continue providing market momentum.
Currency volatility remains a wildcard that could accelerate nominal price growth beyond these base-case scenarios.
How does the current rental yield in Egypt compare with regional averages, and what are the expected returns for investors?
| Market | Gross Rental Yield (%) | Investment Attractiveness |
|---|---|---|
| Cairo (Average) | 6.8-7.9% | Highly attractive |
| Cairo (Prime Areas) | 7-8% | Excellent returns |
| Alexandria | ~5% | Moderate returns |
| Turkey | 4-5% | Below Egypt levels |
| Morocco | 5-6% | Competitive but lower |
| UAE (Mid-market) | 5-7% | Comparable to Egypt |
| Commercial Office (Egypt) | 8-10% | Premium returns |
What is the current demand-to-supply ratio in the Egyptian property market, and how many new units are projected annually?
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Egypt's property market demonstrates strong demand fundamentals driven by demographic and urbanization trends that consistently outpace supply in premium segments.
Demand growth is primarily fueled by Egypt's annual population increase of 1.5 million new residents, with 60% of the population under 30 creating sustained long-term housing demand. This demographic pressure creates a structural demand foundation that supports price appreciation.
The demand-to-supply ratio is particularly tight in top Cairo markets and coastal areas, where demand consistently outpaces available supply. However, some upper-middle-class segments face affordability challenges due to rapid price increases and high mortgage rates.
Annual new unit deliveries reached approximately 23,000 completed units in Cairo alone during 2023. Nationwide, major new city initiatives and government projects are projected to deliver 30,000+ annual units across all developments.
The supply pipeline includes massive government projects that will significantly increase unit availability over the next decade, potentially balancing current supply constraints in certain market segments.
How have mortgage interest rates and loan-to-value ratios evolved in Egypt, and what impact do they have on affordability?
Egypt operates a dual-track mortgage system with dramatically different rates depending on buyer eligibility and government program access.
Standard market mortgage rates currently range from 24-26%, directly tied to the Central Bank of Egypt's monetary policy stance. These high rates significantly constrain affordability for the general middle class and limit mortgage accessibility for most Egyptian buyers.
Subsidized government and CBE mortgage initiatives offer dramatically lower rates of 3-8% for eligible low-to-middle-income buyers. These programs provide loan-to-value ratios up to 85% with terms extending up to 30 years, making property ownership accessible for targeted demographics.
The impact on affordability is stark: high standard rates effectively exclude most middle-class buyers from mortgage financing, while subsidized programs create affordable pathways for qualified applicants. This creates a bifurcated market where access to subsidized financing becomes crucial for homeownership.
It's something we develop in our Egypt property pack.
What percentage of property transactions are driven by foreign buyers, and how is foreign investment expected to change?
Foreign investment in Egypt's property market operates under specific regulatory constraints but shows strong momentum in premium segments and resort areas.
Current regulations limit foreign buyers to a maximum of 2 properties with a combined area not exceeding 4,000 square meters per buyer. Properties must be held for a minimum of 5 years, creating a commitment requirement that filters serious investors.
While exact transaction percentages are not publicly disclosed, foreign demand is particularly strong in Red Sea resort areas, North Coast developments, and premium Cairo locations. Gulf investors and other foreign buyers are drawn by Egypt's relatively high yields and price appreciation potential compared to regional alternatives.
Foreign investment trends are expected to strengthen with new government initiatives, including a digital platform for easier property purchases in foreign currency. This streamlined process should reduce transaction friction and attract additional international investment.
Egypt's investment returns generally exceed those available in regional peer markets, making it attractive for foreign capital seeking higher yields and appreciation potential in emerging market real estate.
How does Egypt's property market compare in terms of affordability to neighboring countries like Turkey, UAE, or Morocco?
Egypt maintains a significant affordability advantage over most regional competitors, though recent price appreciation has reduced this gap.
At USD 500-570 per square meter for Cairo's prime areas, Egypt remains substantially more affordable than Turkey's Istanbul (USD 1,100-1,500), UAE's Dubai (USD 3,500-4,000), or Morocco's Casablanca (USD 1,000-1,400). This price differential makes Egypt one of the most accessible major markets in the MENA region.
On a price-to-income basis, Egypt ranks among the most affordable regional markets for international buyers, though rapid price increases and high local mortgage rates have significantly worsened affordability for Egyptian residents. The dual-track nature of the market creates different affordability scenarios for local versus international buyers.
Egypt's rental yields of 6.8-8% also outperform most regional competitors, providing superior investment returns compared to Turkey (3.5-5%), Morocco (5-6%), and matching UAE's mid-market yields (5-8%).
This combination of lower entry costs and higher yields positions Egypt as an attractive investment destination within the regional context.
What are the government's major housing and infrastructure projects, and how many units are planned for the next decade?
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Egypt versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Egypt's government has launched an unprecedented series of mega-projects that will fundamentally reshape the country's urban landscape over the next decade.
The New Administrative Capital represents the flagship project, designed to accommodate 6.5+ million residents with hundreds of thousands of residential and commercial units. This new city alone will create massive housing supply and establish a new center of government and business activity.
Other major initiatives include New Alamein, El Shorouk, Obour City, and multiple North Coast mega-developments. These projects collectively plan to deliver millions of housing units across various price segments and locations.
The scale of government involvement in housing development is historically unprecedented, with state-backed projects driving much of the new supply pipeline. These developments aim to address Egypt's chronic housing shortage while creating modern urban centers with integrated infrastructure.
The timeline spans the next decade, with various projects at different stages of development and completion. This massive supply injection will significantly impact market dynamics and pricing in affected regions.
How is inflation and currency fluctuation affecting property values, especially with the Egyptian pound depreciation?
Currency devaluation and inflation have created dramatic impacts on Egypt's property market, driving both challenges and opportunities for different buyer segments.
Egyptian pound depreciation has caused sharp increases in construction costs for materials and labor, directly translating to higher property prices. This currency effect has driven nominal property price increases that exceed underlying demand fundamentals.
Property has emerged as a popular inflation hedge, with Egyptian residents and businesses investing in real estate to preserve wealth against currency devaluation. This behavior has amplified demand and contributed to rapid price appreciation beyond normal market forces.
While nominal property values have risen faster than inflation rates, affordability and real spending power for local residents have deteriorated quickly, particularly during 2024-2025. This creates a bifurcated market where property serves as wealth preservation for those with access to foreign currency or significant local currency reserves.
For foreign buyers, currency depreciation has actually improved affordability in USD terms, making Egyptian property increasingly attractive for international investment despite rising EGP prices.
What are the current vacancy rates in prime residential and commercial areas, and how are they trending?
Vacancy rates in Egypt's property market reflect the dynamic between rapid new supply delivery and absorption rates in different segments.
Prime residential areas show vacancy rates of 10-15% in luxury segments, while entry and mid-market properties demonstrate lower vacancy rates due to stronger underlying demand. Premium districts often maintain significant "dark" stock representing unsold or unoccupied units awaiting market absorption.
Commercial property vacancy rates range from 12-18% in new developments, particularly in emerging business districts and new city projects. Legacy office buildings in older Cairo areas experience higher vacancy rates as businesses migrate to modern facilities in new developments.
The trend shows that new city and mega-project developments initially experience high vacancy rates but gradually improve absorption as infrastructure development progresses and populations relocate. This pattern reflects the natural development cycle of large-scale urban projects.
Market absorption rates vary significantly by location, with established areas showing faster uptake than emerging districts still developing infrastructure and amenities.
What is the outlook of international institutions like IMF, World Bank, and Fitch on Egypt's real estate sector growth potential by 2030?
International financial institutions maintain a broadly positive outlook on Egypt's real estate sector through 2030, anchored by strong demographic fundamentals and development initiatives.
The IMF and World Bank highlight Egypt's large population, significant housing deficit, and strong foreign direct investment and migrant inflows as key growth drivers. These structural factors support sustained demand for housing and commercial property development.
Institution forecasts project continued growth in both property values and transaction volumes, especially as new infrastructure projects and international investment drive market evolution through 2030. The scale of government-backed development projects provides a foundation for sustained sector expansion.
However, institutions also identify risks including sustained inflation, currency instability, and periodic oversupply in luxury market segments. These factors could create volatility and impact growth trajectories in certain market segments.
The consensus view supports long-term growth potential while acknowledging macroeconomic challenges that require monitoring and management for optimal market development through the rest of the decade.
It's something we develop in our Egypt property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Egypt's property market presents compelling opportunities for both investors and residents, with strong fundamentals supporting continued growth through 2030.
The combination of high rental yields, government mega-projects, and regional affordability advantages positions Egypt as an attractive real estate investment destination despite macroeconomic challenges.
Sources
- House Price Egypt
- Average Apartment Price Egypt
- Egypt Real Estate Market Trends
- Egypt Real Estate Market Outlook
- Mordor Intelligence - Egypt Residential Real Estate Market
- Economy Middle East - Egypt Real Estate Market
- Global Property Guide - Egypt Rental Yields
- Global Property Guide - Regional Rental Yields
-Egypt Property Taxes and Fees