Buying real estate in Egypt?

What are the current trends in Egypt real estate market?

Last updated on 

Authored by the expert who managed and guided the team behind the Egypt Property Pack

buying property foreigner Egypt

Everything you need to know before buying real estate is included in our Egypt Property Pack

Egypt's real estate market is experiencing significant transformation in 2025, driven by government mega-projects, foreign investment, and infrastructure development.

Property prices have surged dramatically across major cities, with Cairo and New Administrative Capital leading the growth. The market shows strong momentum despite economic challenges, with residential and commercial sectors benefiting from policy reforms and international funding.

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.

How this content was created 🔎📝

At Sands of Wealth, we explore the Egyptian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Cairo, Alexandria, and New Administrative Capital. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average price per square meter for residential and commercial properties in Egypt's major cities?

As of June 2025, Egypt's major cities show significant price variations across different property types and locations.

In New Cairo's 5th Settlement, residential apartments average EGP 23,800 per square meter ($479), while villas command EGP 21,450 per square meter ($432). The New Administrative Capital leads with apartment prices at EGP 27,600 per square meter ($555), reflecting its status as the government's flagship development.

Sheikh Zayed City maintains premium pricing with apartments at EGP 24,900 per square meter ($501) and villas at EGP 24,400 per square meter ($491). Alexandria offers more affordable options at EGP 7,300 per square meter ($147) for apartments, making it attractive for budget-conscious buyers.

Commercial real estate commands significantly higher prices, particularly in the New Administrative Capital where premium projects reach up to EGP 350,000 per square meter. Office spaces in New Cairo and Sheikh Zayed typically range from EGP 50,000 to EGP 120,000 per square meter.

It's something we develop in our Egypt property pack.

How have real estate prices evolved over the past 6 to 12 months in Cairo, Alexandria, New Cairo, and coastal areas?

Egypt's real estate market has experienced dramatic price increases across all major cities in the past year.

Cairo and New Cairo lead the surge with prices jumping 89.4% year-over-year in Q1 2025, accompanied by rental rates increasing 90.2%. This represents the most significant growth in the region's recent history.

Sheikh Zayed City shows strong but more moderate growth, with apartments rising 46.2% over the past two years, while villas increased 10.7% during the same period. Alexandria has maintained steady growth around 15% annually.

Coastal areas present a mixed picture - North Coast apartment prices dipped 1.1% year-over-year, but villa prices surged 15.8%. This reflects the luxury market's resilience and tourism-driven demand for high-end properties.

The market is experiencing a correction after prices surged 200% since 2022, with 2025 showing slower but still substantial growth as buyers exercise more caution.

What are the short-term and medium-term projections for property price trends across key cities and regions?

Property price projections for Egypt remain strongly positive despite market corrections.

For 2025, real estate developers anticipate price increases of 10-30% across major cities, driven by persistent inflation, limited supply, and continued foreign investment. The New Administrative Capital is expected to see the highest appreciation at 30-50% over the next five years.

Medium-term forecasts from 2026-2030 project the residential market will grow at a 10.96% compound annual growth rate, reaching $36.92 billion by 2030. Commercial real estate shows similar optimism with a 10.19% CAGR forecast for office spaces.

North Coast luxury properties are projected to benefit from tourism growth and government infrastructure investments in New Alamein. The region's beachfront developments are expected to maintain 15-20% annual appreciation through 2027.

As we reach mid-2025, government-backed developments and infrastructure projects continue to drive long-term value creation across key metropolitan areas.

Which types of properties are currently experiencing the highest demand?

Luxury residential properties dominate current demand across Egypt's prime locations.

High-end apartments and villas in the New Administrative Capital, New Cairo, and North Coast command premium prices and quick sales. Government employees and expatriates specifically seek modern amenities and proximity to business districts.

Affordable housing units under the "Housing for All Egyptians" initiative show strong demand from local buyers, with properties priced between EGP 400,000-1.5 million selling rapidly. These government-backed projects address middle-income housing needs.

Commercial office spaces in the New Administrative Capital and New Cairo experience robust demand as corporations relocate headquarters. Retail spaces in mixed-use developments also attract investor interest.

Tourism-driven vacation homes in Hurghada and Sharm El-Sheikh maintain steady demand from both domestic and international buyers seeking rental income opportunities.

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.

investing in real estate in  Egypt

What are the current rental yields and occupancy rates in top-performing neighborhoods?

Egypt's rental market offers attractive yields for property investors across major cities.

Cairo delivers an average gross rental yield of 6.77%, with Mohandessin's 2-bedroom apartments achieving exceptional returns of 13.33%. New Administrative Capital and New Cairo properties typically generate 7-8% yields for well-located apartments.

Sheikh Zayed City maintains competitive yields around 7.2%, while Alexandria offers lower returns at 5.06% due to cheaper property prices but also reduced rental demand.

Occupancy rates remain strong in prime locations, with New Administrative Capital and New Cairo maintaining 85-90% occupancy for quality properties. Coastal areas show seasonal variations, with North Coast properties achieving 70-80% occupancy during peak tourism months.

Commercial properties in business districts maintain higher yields, with office spaces in the New Administrative Capital generating 8-10% returns for well-positioned buildings.

Which areas in Egypt are showing the most potential for capital appreciation in the next 1 to 3 years?

Several key regions demonstrate exceptional growth potential for medium-term capital appreciation.

Area Projected Appreciation Key Growth Drivers
New Administrative Capital 30-50% over 5 years Government hub, infrastructure investment
North Coast 15-20% annually Tourism growth, luxury developments
Sheikh Zayed City 25-35% over 3 years Upscale projects, proximity to Cairo
6th of October City 20-30% over 3 years Industrial expansion, residential growth
New Alamein 40-60% over 5 years Government-backed smart city development

How is demand distributed between buyers seeking to live, rent out, or resell properties?

Egypt's property market serves diverse buyer motivations with distinct purchasing patterns.

End-users seeking primary residences represent approximately 45% of buyers, focusing on affordable housing and government-backed projects. These buyers typically purchase properties in the EGP 1-3 million range and prioritize proximity to work and schools.

Investment buyers targeting rental income comprise 35% of the market, concentrating on New Administrative Capital, New Cairo, and North Coast properties. They seek properties offering 7-8% rental yields and strong appreciation potential.

Speculative buyers planning to resell constitute 20% of transactions, primarily targeting emerging areas like New Alamein and underdeveloped NAC districts. These buyers often purchase off-plan properties with extended payment terms.

Foreign investors, particularly from GCC countries, focus heavily on luxury properties and commercial real estate, averaging $1.86 million per transaction. They represent a small percentage by volume but significant value contribution.

What are the average purchase budgets of local versus foreign buyers, and how do they differ by location?

Buyer budgets vary significantly between local and international purchasers across different regions.

Local Egyptian buyers typically budget EGP 1-3 million ($20,000-60,000) for residential properties, focusing on affordable housing initiatives and middle-income developments. They concentrate purchases in 6th of October City, outer Cairo districts, and Alexandria.

Affluent local buyers with budgets of EGP 5-10 million ($100,000-200,000) target premium apartments in New Cairo, Sheikh Zayed, and New Administrative Capital. These buyers often finance through extended payment plans and mortgage programs.

Foreign buyers, predominantly from GCC countries, average $1.86 million per transaction, focusing on luxury properties, commercial real estate, and beachfront developments. They typically purchase with cash or minimal financing.

Expatriate buyers under government initiatives like "Your Home in Egypt" typically budget $150,000-500,000, targeting modern developments with international amenities in New Administrative Capital and New Cairo.

It's something we develop in our Egypt property pack.

infographics rental yields citiesEgypt

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.

What new government projects, infrastructure developments, or policy changes could impact property values?

Government initiatives are fundamentally reshaping Egypt's real estate landscape through massive infrastructure investments.

The New Administrative Capital represents the largest single investment with EGP 55 billion allocated for infrastructure development. This project is attracting corporate headquarters relocations and driving residential demand in surrounding areas.

New Alamein city development on the Mediterranean coast includes smart city infrastructure, tourism zones, and residential districts. Government backing ensures long-term value creation for early investors.

Mortgage financing reforms have extended loan terms up to 10 years with down payments as low as 5%, making homeownership accessible to more Egyptians. The government has provided EGP 81.22 billion in mortgage financing to 617,500 beneficiaries since 2014.

Infrastructure projects including the New Suez Canal expansion, road networks, and public transportation systems continue to enhance connectivity and property values in previously underserved areas.

How accessible is mortgage financing right now, and what are the typical down payments and interest rates?

Mortgage accessibility has improved significantly in 2025, though interest rates remain elevated due to economic conditions.

Current mortgage interest rates stand at 25.5%, down from 27.25% in 2024, reflecting gradual monetary policy easing. Banks offer extended payment terms up to 10 years to improve affordability for middle-income buyers.

Down payment requirements have been reduced to as low as 5% for qualified borrowers under government housing initiatives. Traditional mortgages typically require 10-20% down payments depending on property value and buyer profile.

The government's mortgage finance program has allocated significant resources, with EGP 81.22 billion provided to over 617,500 citizens. This program specifically targets first-time homebuyers and affordable housing purchases.

Real estate developers are adapting by offering extended installment plans directly, reducing buyer dependence on traditional bank mortgages. These developer-financed options often provide more flexible terms than conventional mortgages.

Where are the current oversupplied or undervalued markets that buyers should be cautious or opportunistic about?

Egypt's rapid development has created both opportunities and oversupply risks in specific markets.

Oversupplied areas include older Cairo suburbs where speculative buying created excess vacant units. Buyers should exercise caution in mature developments with stagnant resale demand and declining rental interest.

Opportunity markets exist in government-backed affordable housing projects in Nasr City and Heliopolis, where prices surged 52.3% in 2025. These areas offer potential for buyers seeking value appreciation.

Emerging areas like El Alamein and NAC's Second Financial District present opportunities for buyers who can wait for infrastructure completion. Early purchasers in these zones may benefit from significant appreciation as development progresses.

Coastal areas outside prime North Coast developments may face oversupply as numerous projects compete for tourism and vacation home demand. Buyers should focus on established developments with proven rental performance.

It's something we develop in our Egypt property pack.

Based on all this, what's the best strategy right now if you're looking to buy for living, investing, or reselling—where, what type of property, and at what price point?

Strategic property purchasing in Egypt requires careful alignment with market trends and personal objectives.

For primary residence buyers, prioritize New Cairo or New Administrative Capital for modern amenities and long-term value retention. Budget EGP 2-4 million for quality apartments with good infrastructure access.

Investment buyers should focus on commercial spaces in New Administrative Capital (EGP 50,000-120,000 per square meter) or North Coast vacation homes benefiting from tourism growth. Target properties offering 7-8% rental yields with appreciation potential.

Resale-focused buyers should target emerging areas like El Alamein or NAC's underdeveloped districts before infrastructure completion. Purchase off-plan properties with extended payment terms to maximize leverage.

Budget-conscious buyers can access government-backed affordable units (EGP 400,000-1.5 million) while benefiting from favorable financing terms and guaranteed quality standards.

Avoid oversupplied markets with stagnant resale demand, particularly older Cairo suburbs lacking modern amenities or growth catalysts.

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.

Sources

  1. Global Property Guide - Egypt Price History
  2. Daily News Egypt - Commercial Real Estate Prices
  3. Sands of Wealth - Egypt Investment Areas
  4. Daily News Egypt - Q1 2025 Performance
  5. Elbayt - Egypt Real Estate Market 2025
  6. Mordor Intelligence - Residential Market Report
  7. Global Property Guide - Egypt Rental Yields
  8. Consultancy ME - GCC Investors in Egypt
  9. Trading Economics - Egypt Interest Rates
  10. Consulteg - Best ROI Areas