Authored by the expert who managed and guided the team behind the Egypt Property Pack
Everything you need to know before buying real estate is included in our Egypt Property Pack
Egypt's property market is experiencing a dynamic period as we reach mid-2025, with substantial price increases and strong investor demand shaping the landscape. Property prices are expected to rise between 10-30% in 2025, driven by inflation, economic stability measures, and robust demand in key areas like Cairo and the Red Sea coast.
If you want to go deeper, you can check our pack of documents related to the real estate market in Egypt, based on reliable facts and data, not opinions or rumors.
Egypt's residential property market is forecast for significant growth through 2025, with experts predicting price increases of 10-30% across major cities.
The New Administrative Capital, Red Sea coastal areas, and established neighborhoods in Cairo are leading appreciation trends, while rental yields remain attractive at 6-8% nationally.
| Market Indicator | Current Status (June 2025) | Forecast |
|---|---|---|
| Average Price Growth | 39.3% YoY (Q1 2024) | 10-30% increase in 2025 |
| Rental Yields | 6-8% nationally | Stable with slight increases |
| Top Growth Areas | New Capital, Red Sea | 30-50% appreciation potential |
| Tourist Area Demand | 48% occupancy (Hurghada) | Growing seasonal demand |
| Urban Center Focus | Cairo, Alexandria | Continued premium pricing |
| Construction Costs | Rising with inflation | Key driver of price increases |
| Investment Climate | Safe haven status | Sustained foreign interest |
What are the current average prices per square meter in Cairo, Alexandria, and the Red Sea coast?
As of June 2025, Egypt's major property markets show significant price variations across different regions and property types.
In Cairo, apartments in prime areas like the New Administrative Capital and Sheikh Zayed City average EGP 19,250–27,600 per square meter ($387–555), while villas in suburban zones like El Maadi and 6th of October City range from EGP 21,400–24,400 per square meter ($431–491). The New Capital leads with the highest apartment prices at EGP 27,600 per square meter.
Alexandria presents a more affordable option with apartments averaging EGP 7,300 per square meter ($147), though this represents a 16.1% year-over-year decline. Villas in Alexandria have performed better, reaching EGP 13,850 per square meter ($279) with a 16.4% yearly increase.
The Red Sea coast, particularly Hurghada, commands premium prices due to tourism demand. Apartments average EGP 26,500 per square meter ($520), while luxury coastal villas reach EGP 56,400–77,300 per square meter ($1,115–1,530) in high-end projects.
It's something we develop in our Egypt property pack.
How have property prices changed over the past 12 months in major cities?
Egypt's property market has experienced dramatic nominal price increases over the past year, though inflation has moderated real gains.
Cairo has seen nominal price surges of 14–30% in prime areas, with New Cairo rising 14.4% and 6th of October City jumping 29.6%. However, when adjusted for Egypt's high inflation rate, real-term values actually declined by 4.8%. This reflects the broader economic pressures affecting the market.
Giza has performed strongly with villa prices in 6th of October City rising 24.2% year-over-year. The area benefits from its industrial hub status and continued development projects.
Alexandria shows mixed results with apartments falling 16.1% while villas gained 16.4%, indicating a shift in buyer preferences toward larger properties in the coastal city.
The New Administrative Capital continues to lead price growth with apartments reaching EGP 27,600 per square meter, representing the highest values in the Egyptian market due to government investment and infrastructure development.
What's the short-term forecast for residential property prices over the next 6 months?
The Egyptian residential property market is expected to experience moderate but sustained growth over the next six months.
Moderate growth of 5–10% is anticipated in Cairo and the New Administrative Capital, supported by continued demand but tempered by inflationary pressures and high interest rates currently at 27–30%. These elevated borrowing costs are constraining some buyer activity while maintaining investment appeal for cash buyers.
Tourist areas along the Red Sea coast are likely to see price stability rather than dramatic increases, with seasonal demand patterns continuing to drive market activity. The summer season typically brings increased interest from both domestic and international buyers.
Infrastructure developments, particularly the New Capital's monorail system and continued government relocations, are expected to sustain price momentum in strategic areas. However, overall market growth may moderate compared to the dramatic increases seen in 2024.
Currency stability remains a key factor, with any further devaluations potentially accelerating price increases as property becomes a hedge against inflation.
What's the medium to long-term outlook for Egypt's real estate market over 1-5 years?
Egypt's real estate market outlook for 1-5 years remains optimistic despite economic challenges, with substantial growth expected in strategic developments.
Optimistic growth of 10–30% annually is forecast, driven primarily by massive infrastructure projects including the New Administrative Capital, monorail systems, and coastal developments. These government-backed megaprojects are creating new demand centers and attracting significant foreign investment.
The New Administrative Capital represents the strongest growth potential with 30–50% appreciation expected over the forecast period. Government ministries, embassies, and businesses are gradually relocating, creating sustained demand for both residential and commercial properties.
However, key risks include ongoing inflation and currency volatility, which could dampen real returns even as nominal prices rise. The success of economic stabilization measures will be crucial for sustained market health.
Foreign investment flows are expected to increase as Egypt's strategic location and government reforms attract international capital, particularly in tourism-focused coastal developments and high-end urban projects.
Don't lose money on your property in Egypt
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Which areas in Egypt are expected to see the most property value growth?
Five key areas stand out for exceptional property value growth potential over the coming years.
| Area | Growth Potential | Key Drivers |
|---|---|---|
| New Administrative Capital | 30-50% appreciation | Government relocation, infrastructure |
| New Alamein | 25-40% growth | Coastal tourism, luxury development |
| Sheikh Zayed City | 20-35% increase | Upscale suburbs, 46.2% recent growth |
| 6th of October City | 25-40% rise | Industrial hub, 63.3% YoY growth |
| Hurghada | 15-30% appreciation | Tourism demand, vacation homes |
| North Coast | 20-35% growth | Luxury resorts, seasonal demand |
| Madinaty | 15-25% increase | Smart community design, amenities |
How do rental yields vary by city and property type?
Egypt offers attractive rental yields compared to many regional markets, with significant variations across cities and property types.
Cairo leads with an average gross yield of 6.77%, with some areas like Mohandesein reaching exceptional yields of 12.73%. Premium neighborhoods such as Zamalek and New Cairo typically offer 8–10% yields, making them attractive for buy-to-let investors.
Alexandria provides more modest but stable returns at 5.06% yield for apartments, reflecting the city's more affordable price points and steady rental demand from students and professionals.
Hurghada excels in the tourist rental market with 7.29% yields for short-term vacation rentals, benefiting from Red Sea tourism and seasonal demand peaks. Beachfront properties command premium rental rates of EGP 3,000–5,000 monthly.
Commercial properties deliver the highest returns at 10–14%, while luxury villas in gated communities also provide strong ROI potential. Mixed-use developments and serviced apartments are emerging as high-yield investment options.
It's something we develop in our Egypt property pack.
What are occupancy rates and rental demand like in tourist versus urban areas?
Occupancy rates and rental demand show distinct patterns between Egypt's tourist destinations and major urban centers.
Tourist areas like Hurghada maintain 48% average occupancy for furnished apartments, with beachfront units commanding EGP 3,000–5,000 monthly rates. The Red Sea coast experiences strong seasonal variations, with peak occupancy during winter months when European tourists seek warmer climates.
Urban centers, particularly Cairo, achieve higher overall occupancy at 52% for furnished apartments. New Cairo leads urban rental demand with monthly rates ranging from EGP 24,000–100,000 depending on property size and amenities. The presence of international schools, business districts, and modern infrastructure drives consistent demand.
Serviced apartments are gaining popularity in both markets, offering flexible terms for business travelers and expatriates. These properties typically achieve higher occupancy rates and rental premiums compared to traditional unfurnished units.
The growing expatriate community and business travel to Egypt's major cities continues to support strong urban rental demand, while tourist areas benefit from both domestic weekend getaways and international vacation rentals.
What are the average resale timelines and profit margins for different property types?
Resale performance varies significantly across Egypt's property market depending on location and property type.
Prime areas like the New Administrative Capital offer the strongest resale potential with 15–20% appreciation expected over 2–3 years. Properties near infrastructure hubs, particularly monorail stations, command premium resale values due to improved connectivity.
Suburban villas typically generate 10–15% profit margins but face slower turnover in oversupplied markets. Areas like 6th of October City and Sheikh Zayed benefit from industrial and business development, supporting faster resale timelines.
Coastal properties in Hurghada and the North Coast maintain steady resale demand due to tourism appeal, though seasonal market fluctuations can affect timing. Properties purchased during off-peak periods often achieve better resale margins.
Luxury developments and branded residences typically offer the highest resale premiums but require longer holding periods to maximize returns. The growing market for high-end properties supports strong resale prospects in premium locations.
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.
Are there government policies or infrastructure projects that could influence the market?
Several major government initiatives and infrastructure projects are set to significantly impact Egypt's property market in the coming years.
Interest rate policy remains crucial, with current rates at 27–30% hindering affordability for many buyers. Potential rate cuts could dramatically boost demand and accelerate price growth across all market segments.
The New Administrative Capital project continues as the government's flagship development, with ministries, embassies, and businesses gradually relocating. This massive investment is driving property demand and creating a new premium market segment.
Transportation infrastructure improvements, including the monorail system connecting New Cairo to the New Capital, are enhancing connectivity and property values along transit corridors. Additional rail projects are planned to link major urban centers.
Mortgage market reforms and the introduction of real estate investment trusts (REITs) are making property investment more accessible to broader segments of the population. New financing options are expected to increase market liquidity and demand.
What are the most livable and affordable neighborhoods for buyers looking to relocate?
Egypt offers several neighborhoods that balance livability, affordability, and access to essential amenities for residents.
Badr City emerges as highly affordable at EGP 9,450 per square meter while offering modern infrastructure and good connectivity to Cairo. The planned community provides essential services and represents excellent value for first-time buyers.
15th of May City offers slightly higher prices at EGP 10,800 per square meter but includes better developed amenities and established community facilities. The area benefits from proximity to industrial zones providing employment opportunities.
New Cairo, while more expensive, provides exceptional family amenities including top international schools, modern shopping centers, and well-planned residential compounds. The area offers a high quality of life for families willing to pay premium prices.
El Maadi remains popular for its green spaces, established infrastructure, and central location. The neighborhood combines historical charm with modern conveniences, making it ideal for expatriates and educated professionals.
These areas provide varying price points while maintaining access to healthcare, education, and transportation networks essential for comfortable living.
Which city and property type offers the best rental cash flow with low vacancy risk?
Cairo consistently delivers the strongest rental cash flow opportunities with manageable vacancy risks across multiple property types.
Mohandesein and Zamalek neighborhoods in Cairo offer exceptional yields of 8–10%, supported by strong demand from professionals, expatriates, and students. These established areas maintain consistently low vacancy rates due to their central locations and amenities.
Compact apartments in mixed-use compounds like Eastown provide optimal cash flow potential. These properties benefit from integrated retail and office spaces, creating built-in demand for residential units from workers and shoppers.
Serviced apartments represent the fastest-growing rental segment, offering flexibility for business travelers and expatriates while commanding premium rates. These properties typically achieve higher occupancy rates than traditional rentals.
New Cairo's compound developments offer strong rental yields with lower management requirements, as integrated communities attract long-term tenants seeking modern amenities and security.
Properties near major employment centers, universities, and transportation hubs consistently outperform the market in both rental rates and occupancy levels.
It's something we develop in our Egypt property pack.
What price range and location offer the highest appreciation potential for 2-3 year resales?
Strategic property selections in specific price ranges and locations offer the strongest appreciation potential for investors planning 2-3 year holding periods.
The optimal price range of EGP 3.5M–7M ($70k–140k) in the New Administrative Capital or Sheikh Zayed City provides the best balance of growth potential and market liquidity. These areas benefit from ongoing infrastructure development and government support.
Properties near infrastructure hubs, particularly monorail stations and major highway intersections, consistently outperform broader market averages. Proximity to transportation links adds significant value as Egypt's connectivity improves.
Mid-market properties in emerging areas like New Alamein and the North Coast offer strong appreciation potential as tourism infrastructure develops. These coastal locations benefit from both domestic and international demand growth.
Mixed-use developments and properties within integrated communities typically achieve higher appreciation rates due to their comprehensive amenities and professional management. These developments attract premium buyers and maintain stronger resale values.
Properties in areas receiving government investment, including new universities, business districts, and administrative centers, consistently outperform due to increased economic activity and population growth.
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 investors and residents alike, with strategic locations offering significant growth potential despite economic challenges.
The combination of government infrastructure investment, tourism development, and currency adjustments creates a favorable environment for property appreciation, particularly in the New Administrative Capital, Red Sea coast, and established Cairo neighborhoods.
Sources
- Global Property Guide - Egypt Square Meter Prices
- Global Property Guide - Egypt Price History
- Ahram Online - Egypt Property Market
- Sands of Wealth - Egypt Price Forecasts
- Daily News Egypt - Price Increases 2025
- Invest-Gate - Egypt Real Estate Outlook 2025
- Sands of Wealth - Egypt Real Estate Market
- Global Property Guide - Egypt Rental Yields
- Hurghadian Property - Hurghada Market Data
- Statista - Egypt Real Estate Market Forecast