Egypt’s residential property market has witnessed one of its steepest price increases in over a decade, with unit prices surging by 20 to 30 percent during the first half of 2025 compared to late 2024.
According to data from The Board Consulting, property values in some of the country’s most sought-after locations — particularly East Cairo, West Cairo, and the North Coast — have reached historic highs, with prices surpassing EGP 200,000 per square meter ($4,055) in top-tier districts.
This dramatic rise has been driven by a confluence of economic pressures and market dynamics. Chief among them is the sharp devaluation of the Egyptian pound in early 2024, which significantly increased the cost of imported building materials, energy, and finishing products.
Developers have responded by raising prices to preserve margins amid rising construction costs. Simultaneously, annual inflation exceeding 30 percent has further elevated input costs, including wages, transportation, and raw materials.
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Tight land supply and investor demand amplify price pressures
Land scarcity in high-demand areas —especially East and West Cairo and the North Coast — has played a critical role in price escalation. Limited availability of prime plots has intensified competition, while a wave of speculative investment has added further heat to the market. Real estate remains a favored hedge against currency volatility and inflation.
Adding to the pressure are rising financing costs and a spike in steel, cement, and finishing prices. These have forced developers to revise pricing strategies for both existing inventories and new project launches.
Market resilience: Developers post record sales despite headwinds
Despite mounting economic challenges, the residential market has demonstrated remarkable resilience. The Board Consulting reports that Egypt’s top 10 real estate developers achieved combined sales of approximately EGP 290 billion ($5.89 billion) in the first quarter of 2025, a 23 percent increase compared to EGP 235 billion ($4.76 billion) in Q1 2024.
Roughly 18,500 units were sold during the quarter, with an average unit price of EGP 15.7 million ($318,335), reflecting a 25 percent year-on-year price increase, particularly in the upper-middle and luxury segments.
Key price movements by region:
- East Cairo (Fifth Settlement):
Prices ranged from EGP 60,000 to over EGP 200,000 per square meter, among the steepest in the capital. - Sixth Settlement (East Cairo):
Prices climbed to EGP 120,000–160,000, reflecting an 18 percent increase within the first four months of 2025. - West Cairo:
Continued to see strong demand, with prices ranging between EGP 50,000 and EGP 170,000 per square meter. - North Coast:
Bolstered by the Ras El Hekma development deal, prices reached EGP 70,000 to EGP 200,000 per square meter.
Premium secondary market units have reportedly sold for EGP 800 million to EGP 1 billion. - El Obour City:
An emerging hotspot, where average prices rose from EGP 7,000 in 2023 to around EGP 35,000 in 2024. - New Administrative Capital:
Residential prices varied from EGP 50,000 to EGP 70,000 per square meter, influenced by developer reputation and project stage.
Currency devaluation remains key driver
The initial wave of price hikes followed the early 2024 devaluation of the Egyptian pound, prompting developers to reprice based on costlier imports and volatile exchange rates.
After a brief period of consolidation amid temporary currency stabilization, prices continued to rise in the second half of 2024 and into 2025, registering additional increases of 15 to 30 percent.
Outlook: More price hikes likely in second half of 2025
Market forecasts suggest prices could rise another 20 to 30 percent during the second half of the year, driven by persistent inflation and elevated construction costs, even as the Central Bank of Egypt has cut interest rates by a cumulative 3.25 percent in April and May 2025.
Developers are increasingly relying on a mix of regional demand trends, input cost analysis, and competitor benchmarking to set prices. However, the availability of flexible payment plans and extended instalment schemes has enabled the market to absorb these cost increases — reflecting continued end-user and investor confidence in Egypt’s long-term residential real estate outlook.
Gaining momentum
Despite economic headwinds, Egypt’s residential real estate market continues to outperform expectations in 2025. Surging prices, while driven by inflation and devaluation, are being sustained by strong demand, limited supply, and investor appetite for stable, inflation-resistant assets.
