Post by: Pratik Kumar
Despite some drops in the prices of building materials like steel and cement, Egypt’s real estate market is expected to see price increases in 2025. Economic issues like high inflation and interest rates are likely to push up costs for building and investment. Because of this, real estate developers are predicting price increases between 10% and 30%, unless there are big changes in the economy or government policies.
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Most developers agree that these price hikes are a fair estimate. While cheaper building materials might help reduce costs for developers, the bigger factors, such as inflation and interest rates, will still have the most influence on the market in the coming year.
Osama Saad El-Din, who works with the Real Estate Development Chamber at the Federation of Egyptian Industries, thinks that real estate prices in Egypt could go up by 20-25% in 2025. Even though steel prices have fallen and other costs might go down, developers will still need to keep prices higher than before to make sure they can earn profits. He also said many developers have already set their prices for next year, taking into account how inflation and interest rates are expected to rise. He believes that while some developers might keep prices steady if construction costs keep falling, it’s unlikely that they will reduce prices directly.
Mohamed El Aasar, the head of Margins Developments, also sees challenges for the real estate market in 2025. He said keeping prices stable in tough economic conditions and finishing projects on time will be big challenges for developers. El Aasar predicts that prices will increase by at least 30% next year.
Mohamed Amin, the CEO of Cratos Real Estate, said he thinks prices could rise between 15% and 25% in 2025. He believes this will happen because demand for properties remains strong and many people still want to invest in real estate. Amin also said that areas like New Cairo and the North Coast, which saw lots of interest in 2024, will likely continue to have strong demand in 2025 because of the fast growth in these areas and ongoing investor interest.
Amin also noticed that more people are looking for residential units and serviced apartments. These types of buildings are becoming popular because they can be both places to live in and smart investments. Serviced apartments, in particular, are getting more attention from international buyers.
Sherif Mahgoub, a financial expert, shared his thoughts on how developers have responded to lower sales and demand. Some developers are focusing on wealthier buyers by building luxury projects, like branded apartments. Others are offering special deals, like longer payment periods with no extra fees, or smaller units to make properties more affordable for different buyers. These strategies are helping keep the market active. Mahgoub said any large price increases would depend on factors like another drop in the value of the currency or a new rise in inflation, which could make more people want to invest in real estate.
Looking ahead, Mahgoub stressed that Egypt’s real estate market needs fair policies to help demand, especially by raising household incomes. He also mentioned that developers will need to keep offering creative solutions to keep sales going in these tough economic times.
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