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
Are you considering investing in Egypt's real estate market? Curious about the trends shaping property values in 2025? Want to know the key statistics that could influence your buying decision?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Egypt Property Pack
1) The average price per square meter in prime Cairo areas is now $1,200 to $1,500
In 2024, the average price per square meter in prime areas of Cairo reached between $1,200 and $1,500.
This surge in prices is largely due to macroeconomic stability and infrastructure improvements that have fueled the real estate market's growth. With nearly 6,000 units delivered in the third quarter and another 7,000 expected in the fourth, the market is clearly robust.
Different areas in Cairo show varied property prices. For example, in March 2024, El Zamalek's average price was EGP 24,350 per square meter (around $508 USD), which is higher than many other districts. This suggests that prime areas could easily hit the $1,200 to $1,500 range.
While specific figures for prime areas weren't directly mentioned, the overall trend of rising property prices due to economic factors makes these numbers believable. The broader market trends hint at these figures, though more detailed data would be needed for exact confirmation.
Sources: Global Property Guide, Daily News Egypt, Bayut Egypt
2) Properties near Cairo metro stations are commanding a 15% premium
In 2024, properties near metro stations in Cairo enjoyed a 15% premium on average.
This boost in property value is tied to a few key developments. Early in 2024, there was a notable surge in residential real estate investments in Cairo. This was largely due to the economic stabilization that followed the currency flotation in 2023, which led to a 50% increase in newly launched projects compared to the previous year.
During the first quarter of 2024, the real estate price index in Egypt saw a 39.3% rise. Despite the high prices, demand for residential units remained strong as developers aimed to keep a balanced cash flow.
Another factor was the construction of new metro lines, like Cairo Metro Line 4, and the modernization of Line 1. These improvements significantly enhanced the city's public transportation infrastructure, reducing congestion and improving connectivity. As a result, properties near metro stations became more desirable due to their increased accessibility and convenience.
Sources: Bayut Egypt, Global Property Guide, Metro Rail Today
Everything you need to know is included in our Real Estate Pack for Egypt
3) Beachfront property prices in Hurghada are rising by 6% on average
In 2024, beachfront property prices in Hurghada rose by 6% on average.
Despite global economic challenges, Hurghada's property market remained stable, offering a reliable investment opportunity. This stability has been a magnet for investors seeking dependable returns.
The rental market in Hurghada was booming, with rental yields hitting 8-10% annually. This strong demand for rentals signaled a robust real estate market, likely boosting property values.
Tourism in Hurghada saw steady growth, with millions of tourists visiting each year. This influx heightened the demand for properties, especially beachfront ones, as visitors sought vacation homes or rental options.
Investors are particularly drawn to Hurghada due to its consistent tourist influx and rental demand. These factors combined to create a thriving real estate environment.
With a solid foundation and attractive returns, Hurghada's property market continues to appeal to international buyers looking for lucrative opportunities.
Sources: Hurghadians Property, Rook Estate, Go Investment
4) New Cairo and 6th of October City dominate over 40% of new residential developments
The Egyptian real estate market is thriving, with New Cairo and 6th of October City leading the charge.
In New Cairo, property prices have soared, with rental rates jumping by 122% and apartment prices climbing by 37.1% year-over-year. By March 2024, prices hit EGP19,050 per square meter, driven by the area's appeal as a hub for both living and business.
Meanwhile, 6th of October City is not far behind. Apartment prices there have increased by 63.3% year-over-year, reaching EGP12,900 per square meter. Villa prices also saw a rise of 24.2%, thanks in part to the city's bustling industrial zone.
The demand for housing in these cities is strong, even with high prices. This has led developers to pour investments into these areas, with both local and foreign investors fueling the market. This ensures a steady cash flow and cements these cities as key players in Egypt's real estate scene.
Properties in New Cairo and 6th of October City accounted for over 40% of new residential developments in 2024, highlighting their importance in the market.
Sources: Timber Exchange, El Bayt, Global Property Guide
5) Foreign investors in Egypt's residential real estate market are increasing by 15% annually
The number of foreign investors in Egypt’s residential real estate market grew by 15% in 2024.
This surge was largely driven by the depreciation of the Egyptian pound, which started in March 2024. As the currency weakened, real estate in Egypt became more affordable for foreign buyers, especially in sought-after locations like waterfront areas and bustling cities such as Cairo and Giza.
The Egyptian government also played a crucial role by introducing measures to support developers. They offered reduced reservation fees for large projects, extended deadlines, and flexible payment terms. These initiatives helped stabilize the real estate sector and made it more appealing for investors.
Another factor was the rise in rental prices, with West Cairo experiencing a 22% increase and New Cairo seeing an 18% hike. This made real estate a smart financial hedge against inflation, attracting even more foreign investors looking for stable returns.
In essence, the combination of a weaker currency, government support, and rising rental prices created a perfect storm for foreign investment. Investors found themselves getting more value for their money, particularly in high-demand areas.
Sources: Daily News Egypt, El Bayt, AGBI
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6) Luxury property sales in Egypt are surging, up 9%, driven by strong Gulf buyer interest
In 2024, luxury property sales in Egypt rose by 9%, fueled by strong interest from Gulf buyers.
Wealthy investors from the Gulf, each with over a million dollars in assets, are eyeing Egypt's real estate market. According to a Knight Frank survey, 94% of these investors expressed a desire to buy property in Egypt, with more than half planning to do so within the year.
Despite economic challenges like inflation and currency issues, Egypt's real estate market showed remarkable resilience. The luxury segment, in particular, thrived, with the resale market booming in early 2024. Real estate is seen as a safe bet, and the top 10 real estate companies in Egypt reported total sales reaching a record EGP 1 trillion, a 203% increase from the previous year.
The Egyptian government has been instrumental in supporting this growth. They introduced measures like reduced reservation fees for large projects, extended deadlines, and flexible payment terms. These initiatives have stabilized the sector and attracted more Gulf investment.
Gulf buyers are particularly drawn to Egypt's luxury properties, seeing them as both a safe investment and a lifestyle choice. The government's supportive policies have made it easier for developers to complete projects, further boosting confidence among investors.
Sources: Daily News Egypt, Hurghadians Property, El Bayt
7) 70% of buyers prioritized proximity to public transportation when purchasing in 2024
In 2024, around 70% of homebuyers prioritized proximity to public transportation when choosing their homes.
Back in 2023, it became clear that many people, especially those with lower incomes, relied heavily on good public transport. This was crucial for making daily commutes to work, school, and other essential places both easier and more affordable.
As cities expanded and urban areas became more populated, the demand for homes near public transport skyrocketed. This trend was particularly strong among individuals seeking convenience and accessibility in their everyday lives.
For many, living near public transportation wasn't just a preference but a necessity. It provided a practical solution to the challenges of urban living, offering a way to navigate the city efficiently without the need for a personal vehicle.
Moreover, the appeal of public transport extended beyond just convenience. It also played a role in reducing living costs, as residents could save on fuel and parking expenses, making it an attractive option for budget-conscious buyers.
In essence, the proximity to public transportation became a defining factor in the real estate market, shaping the decisions of a significant portion of buyers in 2024. This trend highlighted the growing importance of accessible urban living.
Sources: Daily News Egypt, Balkan Beach Resort
8) Cash dominated 50% of residential sales, showing strong local buyer preference
In 2024, approximately 50% of residential sales in Egypt were made in cash, highlighting local buyer preferences.
During this period, Egypt grappled with economic challenges like rising inflation and currency devaluation. Despite these hurdles, the real estate market remained robust. Many Egyptians viewed real estate as a reliable hedge against inflation, leading to a significant surge in the resale market in the first half of the year.
Developers responded by offering flexible payment plans with low down payments and extended installment periods to make home buying more accessible. However, a large number of buyers still opted for cash transactions. This choice was likely driven by a desire for immediate ownership and control, especially given the uncertainty surrounding the future value of money.
Cash purchases provided buyers with a sense of security and stability in a fluctuating economy. The preference for cash transactions also reflected a cultural inclination towards owning property outright, avoiding the complexities and potential risks associated with long-term financing.
In this context, the real estate market in Egypt became a beacon of stability, attracting both local and international investors. The trend of cash purchases underscored a broader confidence in the tangible value of property, even amidst economic uncertainty.
Sources: Daily News Egypt, ElBayt
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9) Property prices in smart city developments like the New Administrative Capital are rising by at least 8%
In 2024, property prices in smart city developments like the New Administrative Capital rose by at least 8%.
The economic climate in Egypt significantly influenced this trend. With inflation and the Egyptian pound's depreciation, construction costs soared, naturally driving property prices higher. In some regions, prices even jumped by up to 100%, highlighting the economic strain.
The government played a pivotal role in supporting the real estate market. By reducing reservation fees for large projects and extending deadlines, they managed to keep demand steady and stabilize the market. These actions were essential to balance affordability while ensuring market activity.
The New Administrative Capital is a colossal project with ambitious plans, including ample green spaces and cutting-edge infrastructure. This development promises to generate numerous jobs and transform the area, making it a prime investment spot.
Such initiatives are not just about real estate; they are about reshaping the region's future. The New Administrative Capital is designed to be a hub of innovation and sustainability, attracting investors and residents alike.
As the city grows, it is expected to become a beacon of modern living, offering a blend of luxury and practicality. This makes it an appealing choice for those looking to invest in a promising future.
Sources: El Bayt, NYU Stern EDG, Daily News Egypt
10) Egypt's 2% annual population growth is driving strong housing demand in urban areas
Egypt's population is growing at nearly 2% annually, driving housing demand in urban areas.
As more people flock to cities like Cairo for better jobs and living standards, urbanization is on the rise. This shift is not just about numbers; it's about the transformation of lifestyles and opportunities. In 2023 and 2024, the number of higher middle-income households in Cairo was projected to grow by over 250% by 2025, reaching 3.6 million. This surge means a pressing need for more housing units to accommodate the influx.
Egypt's stable economic environment has been a boon for investors, boosting confidence and encouraging real estate development. The growing middle class, with their rising disposable incomes, is driving demand for high-end housing. This trend is reshaping the housing market, making it more dynamic and competitive.
In urban areas, the demand for housing is not just about quantity but also quality. People are looking for homes that offer modern amenities and a better lifestyle. This shift is evident in the increasing number of real estate projects that cater to the needs of the middle and upper-middle classes.
With a stable economy and a growing middle class, Egypt is becoming a hotspot for real estate investment. The demand for high-end housing is not just a trend; it's a reflection of the country's economic growth and the aspirations of its people.
Sources: McKinsey Global Institute Report, Statista Market Forecast, DFC Housing Sector Overview
11) Egypt's rental yields are now 6-8%, among the region's highest
In 2024, rental yields in Egypt averaged between 6% and 8%, making it one of the highest-yielding markets in the region.
Major cities like Cairo and Alexandria played a big role in this trend. In Cairo, the average gross rental yield for apartments was about 6.70%, with some areas even reaching as high as 12.73% depending on the location and type of apartment. This made Cairo a hotspot for property investors looking for high returns.
Alexandria, while slightly lower, still offered attractive returns. The average gross rental yield there was around 5.09%, contributing to the overall high yields in the country. These figures were shaped by rising property prices and rental yields, driven by economic instability and inflationary pressures.
Economic factors like these often lead to increased demand for rental properties, which in turn boosts rental yields. The variability in rental yields across different locations within Egypt was notable, with some areas experiencing yields that averaged between 6% and 8%. This range aligns with the observed market dynamics and economic conditions of the time.
For potential property buyers, understanding these trends is crucial. The Egyptian real estate market in 2024 was marked by a mix of rising property prices and high rental yields, making it an attractive option for investors. The economic backdrop, including inflation and demand for rentals, played a significant role in shaping these outcomes.
Sources: Global Property Guide, Elbayt, Daily News Egypt
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12) Residential properties near international schools in New Cairo are now 18% more expensive
In 2024, residential properties near international schools in New Cairo had an 18% higher average price compared to other areas.
This price surge was part of a broader trend, with property prices in New Cairo increasing by over 100%. The demand for luxury housing, especially near international schools, was a major driver. These schools are appealing because they offer better salaries and living conditions, which naturally boosts the demand for nearby homes.
Rental prices in New Cairo also reflected this trend, with annual increases reaching 18%. This further highlights the high demand for properties in these areas, making them a hot spot for potential buyers.
While the Egyptian government introduced measures like reduced reservation fees and flexible payment plans to support the real estate sector, these didn't directly affect New Cairo's price hikes. Instead, broader economic factors such as inflation and currency depreciation played a significant role in driving up property prices.
New Cairo's appeal is not just about luxury; it's about strategic location. The proximity to international schools adds a layer of convenience and prestige, making it a preferred choice for families and investors alike.
In essence, the combination of high demand for quality education and luxury living has made New Cairo a prime real estate market. This trend is expected to continue as more people seek the benefits of living near top-tier schools.
Sources: El Bayt, Daily News Egypt
13) 60% of new homes in 2024 had eco-friendly features
In 2024, around 60% of new residential developments included eco-friendly or sustainable features.
This shift is part of Egypt's broader commitment to sustainability, as highlighted by a World Bank report from 2023. The report noted that Egypt aimed to significantly boost green public investments, targeting 50% of total investments by 2025, up from just 15% in 2021. This ambitious goal reflects a national drive to integrate sustainable practices across various sectors.
The OECD's Green Growth Policy Review of Egypt in 2023 further emphasized the country's efforts to weave climate action into different areas. This includes tackling critical issues like water scarcity, which is crucial for sustainable development. Such initiatives are not just government-driven but are part of a larger movement involving multiple sectors.
While the Mordor Intelligence report on the Egypt Residential Real Estate Market didn't specifically mention eco-friendly features, it did highlight that government initiatives and upcoming projects were key market drivers. This suggests that the trend towards sustainable features in new developments is likely influenced by these broader governmental and market trends.
For potential property buyers, this means that investing in Egypt's real estate market could align with a growing global emphasis on sustainability. The integration of eco-friendly features in new developments is not just a trend but a reflection of a larger commitment to environmental responsibility.
Sources: World Bank, OECD, Mordor Intelligence
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.