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Everything you need to know before buying real estate is included in our Egypt Property Pack
Egypt's property market is experiencing unprecedented growth with prices surging 20-30% year-on-year as of September 2025. The country's real estate sector benefits from massive government infrastructure projects, strong local demand, and attractive rental yields reaching up to 13% in prime locations like Mohandessin.
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Egypt's real estate market is booming with prime residential areas seeing 20-30% price increases and transaction volumes climbing to EGP 290 billion in Q1 2025.
New government cities like the New Administrative Capital and North Coast developments are driving growth, while rental yields remain attractive at 6.8% nationally with some areas reaching 13%.
| Market Segment | Current Performance | Outlook (Next 12 Months) |
|---|---|---|
| Cairo Premium Areas | EGP 27,600/sqm (+20-30% YoY) | Continued growth 20-30% |
| Alexandria Market | EGP 7,300/sqm (steady growth) | Moderate appreciation |
| North Coast | EGP 70,000-200,000/sqm | Strong premium demand |
| New Administrative Capital | Emerging high-growth area | Excellent capital appreciation |
| Rental Yields | 6.8% national average | Rising in prime areas |
| Transaction Volume | EGP 290B Q1 2025 (+23%) | Continued strong activity |
What are the current property prices and transaction volumes across Egypt?
Egypt's real estate market reached record highs as of September 2025, with prime residential areas posting dramatic price increases.
Apartment prices in Cairo's premium districts now average EGP 27,600 per square meter, while Alexandria properties trade at EGP 7,300 per square meter. Villa prices range from EGP 13,850 to EGP 26,850 per square meter depending on location and specifications.
The most exclusive areas in East Cairo, West Cairo, and North Coast command prices between EGP 60,000 and EGP 200,000 per square meter. These premium locations have seen the steepest appreciation rates, with some areas posting year-on-year increases of 30% or more.
Transaction volumes tell an equally impressive story. Developer sales in Q1 2025 reached EGP 290 billion (approximately $5.9 billion), marking a 23% increase compared to the same period in 2024. This surge translated to 18,500 units sold at an average unit price of EGP 15.7 million.
It's something we develop in our Egypt property pack.
How do short-term, medium-term, and long-term market trends differ?
Egypt's real estate market shows distinct patterns across different time horizons, each shaped by unique economic and development factors.
Short-term trends over the next 6-12 months point to continued aggressive price growth. Property values are likely to rise another 20-30% by the end of 2025, driven by persistent inflation exceeding 30% annually, ongoing currency pressures, and construction cost spikes that developers pass through to buyers.
Medium-term projections for 2-3 years suggest growth will continue but at more moderate rates. The massive supply of new government-backed developments will begin entering the market, providing more options for buyers and potentially easing some price pressure. However, strong underlying demand should keep appreciation positive across most segments.
Long-term trends over 5+ years indicate price growth will stabilize as markets mature. Established areas may see moderate annual gains of 5-10%, while high-demand locations and new government cities will likely retain premium status with stronger appreciation. Infrastructure completion in new cities will drive sustained value creation in these emerging markets.
Which regions are experiencing the strongest growth and which are slowing down?
Egypt's real estate growth is highly concentrated in specific regions, creating clear winners and areas of slower momentum.
| Region | Growth Status | Key Characteristics |
|---|---|---|
| East Cairo (Fifth & Sixth Settlement) | Very Strong | Premium residential, excellent infrastructure |
| West Cairo | Very Strong | New developments, government backing |
| North Coast | Very Strong | Tourism, luxury properties, foreign buyers |
| New Administrative Capital | Very Strong | Government hub, massive infrastructure investment |
| El Obour City | Strong | Emerging area, affordable options |
| Alexandria | Moderate | Steady demand, more affordable entry point |
| Secondary luxury markets | Slowing | Selective demand, some oversupply concerns |
The strongest performers benefit from government infrastructure investments, proximity to business centers, or appeal to international buyers. Secondary markets and some luxury segments experienced brief price softness in Q2 2025, mainly due to selective buyer preferences rather than fundamental weakness.
How do residential, commercial, and luxury segments compare in demand and pricing?
Each property segment in Egypt's market shows distinct performance characteristics and investor appeal as of September 2025.
Residential properties serve as the primary growth engine, experiencing broad-based demand across entry-level, mid-range, and luxury categories. This segment benefits from strong local buying power, government housing initiatives, and flexible payment plans offered by developers. Residential demand remains robust due to population growth and urbanization trends.
Commercial properties maintain steady demand driven by new business hubs in government cities and expanding economic activity. The New Administrative Capital and other planned cities create significant opportunities for office and retail space investments. Commercial real estate benefits from Egypt's economic diversification efforts and growing service sector.
Luxury properties experienced temporary headwinds with slight oversupply leading to short-term price stagnation in certain areas. However, prime luxury locations continue attracting buyers, particularly in coastal areas and exclusive Cairo neighborhoods. The luxury segment remains attractive for capital appreciation despite temporary supply-demand imbalances.
Overall, residential properties offer the most consistent performance, while commercial and luxury segments require more selective location and timing strategies for optimal returns.
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How are inflation, interest rates, and currency fluctuations affecting real estate affordability?
Egypt's macroeconomic environment significantly impacts real estate affordability and investment returns across all market segments.
Inflation surpassed 30% annually as of September 2025, creating a powerful driver for property price increases. This persistent inflation pushes up both property values and construction costs, making real estate attractive as an inflation hedge but reducing affordability for middle-income buyers. Developers respond by extending payment plans and offering smaller unit sizes to maintain accessibility.
Interest rate cuts implemented in early 2025 have not offset the impact of rising property prices. While financing costs decreased nominally, the absolute cost of purchasing property increased more dramatically due to price appreciation. Buyers face higher total payments despite lower interest rates, making cash purchases more competitive.
Currency devaluation from early 2024 continues affecting the market by raising import costs for construction materials and luxury finishes. This currency weakness fuels persistent price increases as developers pass through higher costs to buyers. However, devaluation makes Egyptian properties more attractive to foreign buyers with hard currency.
These combined factors create a challenging affordability environment for local buyers while potentially benefiting investors who can hedge against inflation through property ownership.
What impact will new supply and government initiatives have on the market?
Egypt's massive infrastructure and housing development pipeline will reshape the real estate landscape over the next several years.
The government's new city projects represent the largest supply expansion in Egypt's modern history. The New Administrative Capital, New Alamein, and Sheikh Zayed expansions will add hundreds of thousands of residential and commercial units to the market. These developments focus heavily on social housing and middle-class accommodation to address affordability concerns.
Government initiatives include subsidized financing programs and partnerships with private developers to deliver affordable housing. These programs aim to balance rapid price appreciation with broader homeownership access, particularly for first-time buyers and middle-income families.
Developers adapt to market conditions by offering extended installment plans, often stretching over 8-10 years, and creating smaller unit configurations to maintain affordability. This approach helps sustain demand despite significant price increases across most market segments.
The supply impact will likely moderate price growth in the medium term as more units become available. However, continued strong demand from population growth and urbanization should prevent any significant price declines, even with expanded supply.
What rental yields can investors expect and how are they trending?
Egypt's rental market offers attractive yields compared to many international markets, with performance varying significantly by location and property type.
National average gross rental yields reached approximately 6.8% in Q2 2025, representing solid returns for income-focused investors. However, yield performance varies dramatically across different neighborhoods and property categories, creating opportunities for selective investors.
Top-performing areas include New Cairo where studio apartments generate yields up to 10%, and Mohandessin which offers exceptional returns of up to 13% for well-located properties. Sheikh Zayed provides more moderate but consistent yields in the 5-8% range, appealing to investors seeking stable income streams.
Rental yields are trending upward in the best neighborhoods due to continued price appreciation combined with strong rental demand. Areas with good infrastructure, proximity to business districts, and attractive amenities command premium rents while maintaining high occupancy rates.
Foreign investors and expats particularly drive demand for furnished apartments and properties with international-standard amenities, supporting higher rental rates in select locations. This segment offers both attractive yields and potential for capital appreciation.
It's something we develop in our Egypt property pack.
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.
Which areas offer the best potential for capital appreciation over the next few years?
Several Egyptian markets stand out for their exceptional capital appreciation potential based on infrastructure development and demand fundamentals.
New Cairo leads the capital appreciation prospects due to its established infrastructure, premium positioning, and continued development. The area benefits from excellent connectivity, high-end amenities, and strong demand from affluent Egyptians and expatriates. Properties purchased today should see substantial value increases as the area matures further.
The North Coast, particularly around Ras El Hekma, offers outstanding appreciation potential driven by tourism development and luxury resort projects. Government investment in coastal infrastructure and increasing international tourism create favorable conditions for significant property value growth over the next 3-5 years.
The New Administrative Capital represents perhaps the highest appreciation potential due to its status as Egypt's new governmental and business hub. As government offices relocate and infrastructure reaches completion, property values should increase dramatically. Early buyers in this market could see exceptional returns as the city becomes fully operational.
Other emerging cities backed by new infrastructure investments, including Sheikh Zayed expansions and El Obour City, offer strong appreciation prospects at more accessible price points. These areas provide opportunities for investors seeking high growth potential without the premium pricing of established markets.
What are typical property budgets in key markets like Cairo, Alexandria, and coastal cities?
Property budgets in Egypt vary significantly across markets and quality levels, requiring careful planning based on investment goals and location preferences.
| Market | Entry-Level (EGP/sqm) | Mid-Range (EGP/sqm) | High-End (EGP/sqm) |
|---|---|---|---|
| Cairo Premium Areas | 27,600 | 60,000-120,000 | 200,000+ |
| Alexandria | 7,300 | 20,000-35,000 | 80,000+ |
| North Coast | 70,000 | 100,000-160,000 | 200,000+ |
| New Administrative Capital | 45,000 | 80,000-150,000 | 250,000+ |
| Sheikh Zayed | 35,000 | 60,000-100,000 | 180,000+ |
Entry-level properties offer the most accessible investment options, particularly in Alexandria where prices remain significantly lower than Cairo or coastal markets. Mid-range properties represent the sweet spot for many investors, offering good appreciation potential with manageable entry costs.
High-end properties command premium pricing but offer exclusivity, superior amenities, and potential for strong capital gains. These properties typically require substantial initial investment but may provide better long-term returns in prime locations.
How are foreign buyers and expats influencing demand in prime locations?
Foreign investment plays a significant role in Egypt's premium real estate markets, creating distinct demand patterns and price dynamics.
Foreign buyers and expats maintain strong demand in coastal regions, particularly the North Coast and Red Sea developments. These investors seek properties offering international-standard amenities, resort-style living, and potential rental income from tourism. Their purchasing power helps sustain price premiums in these markets even during periods of local economic pressure.
International buyers particularly target serviced apartments and branded luxury developments that offer professional management and guaranteed rental returns. These properties appeal to investors seeking passive income opportunities combined with potential capital appreciation in Egypt's growing tourism sector.
New Cairo and other premium residential areas attract expatriate residents working in multinational companies or diplomatic missions. This steady demand base supports rental markets and helps maintain property values in high-end segments during economic volatility.
Flexible payment plans and developer financing make Egyptian properties accessible to foreign buyers who may not have immediate access to local banking. Many developers structure deals specifically for international investors, accepting staged payments in foreign currency.
What risks should buyers consider in the current market environment?
Several risk factors require careful consideration when investing in Egypt's real estate market, particularly given current economic conditions.
Oversupply risk exists primarily in the luxury segment where some markets experienced temporary price stagnation. While this risk is less pronounced in affordable and mid-range properties due to strong local demand, luxury buyers should carefully evaluate location-specific supply-demand balances before purchasing.
Legal issues can arise in new developments, making due diligence essential. Buyers should thoroughly research developer reputation, project approvals, and ownership documentation. Working with experienced legal counsel familiar with Egyptian real estate law provides important protection against potential complications.
Economic volatility presents ongoing challenges through persistent inflation and currency fluctuations. These factors affect both affordability and project completion timelines, potentially impacting investment returns. However, real estate often serves as an inflation hedge, partially offsetting these risks.
Construction delays and cost overruns may affect project delivery, particularly in large-scale government developments. Buyers should factor potential delays into their investment timelines and cash flow planning.
It's something we develop in our Egypt property pack.
Where should I focus my property purchase based on my investment goals?
Your optimal property investment strategy in Egypt depends heavily on your primary objective and risk tolerance.
For buyers planning to live in their property, focus on New Cairo, Alexandria, or North Coast areas offering established infrastructure and amenities. Target mid-range projects with flexible payment plans that provide good value for money. These locations offer quality of life benefits while maintaining reasonable appreciation potential.
For rental income generation, concentrate on studio or one- to two-bedroom apartments in New Cairo, Mohandessin, and coastal cities. These properties offer the highest rental yields, often 8-13%, with strong tenant demand from young professionals and expatriates. Proximity to business districts and universities enhances rental appeal.
For property flipping and capital appreciation, target fast-growing areas including the New Administrative Capital, Sheikh Zayed, El Obour City, and Ras El Hekma in the North Coast. These markets offer the best prospects for short- to medium-term resale profits due to infrastructure development and emerging demand patterns.
Each strategy requires different risk management approaches. Living-focused buyers should prioritize location quality and amenities, rental investors need to focus on yield sustainability and tenant demand, while flippers should emphasize timing and market development phases for optimal returns.
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 real estate market presents compelling opportunities for both residents and investors in 2025, with strong fundamentals supporting continued growth across multiple segments.
Success in this market requires careful location selection, thorough due diligence, and alignment of investment strategy with personal goals and risk tolerance.
Sources
- House Prices in Egypt - Market Analysis
- Economy Middle East - Egypt's Real Estate Market Booms
- International Investment - Egyptian Housing Prices Surge
- Homes Overseas - Egypt Housing Price Growth
- Egyptian Real Estate Authority - Market Trends
- Statista - Egypt Apartment Purchase Prices
- Bayut Egypt - Real Estate Market Predictions 2025
- El Bayt - Egypt's Real Estate Market 2025