Real Estate Market Forecast in Egypt for 2025
Introduction
The real estate market in Egypt is one of the most important economic sectors witnessing continuous growth, influenced by various economic and social factors that determine its future trends. As we approach 2025, forecasts indicate potential price increases in real estate ranging between 10% and 25%, according to experts and real estate developers. This article will examine the key factors affecting the Egyptian real estate market, trends in supply and demand, and the most attractive areas for real estate investment.
Factors Influencing Property Price Increases in 2025
Inflation and Rising Interest Rates
Inflation is a primary factor affecting the real estate sector, as rising prices increase construction and financing costs. Additionally, rising interest rates make mortgage loans more expensive, prompting developers to pass additional costs onto buyers.
Increased Cost of Building Materials
There has been a noticeable rise in the prices of building materials such as steel, cement, and wood in recent years, attributed to currency fluctuations and reliance on imported raw materials. This increase in costs directly impacts the prices of residential and commercial units.
Currency Exchange Rate Changes
The depreciation of the Egyptian pound against foreign currencies contributes to rising import costs, increasing the expenses associated with developing real estate projects, especially as some developers depend on imported materials.
Increased Demand for Real Estate
The demand for real estate in Egypt remains high, driven by a growing population and various investor segments viewing real estate as a safe haven against inflation.
Economic Improvement and Market Stability
According to Dr. Mahmoud El-Adl, the Egyptian real estate market is witnessing relative stability, which has led to the absence of excessive price increases seen in previous years. Real estate developers expect price increases to remain within the range of 10% to 25%.
Areas Expected to Experience Price Growth and Investment
New Administrative Capital
The New Administrative Capital remains one of the most attractive areas for real estate investments due to the massive projects being implemented, including the headquarters of ministries, major companies, and advanced infrastructure.
New Cairo and Fifth Settlement
New Cairo, particularly the Fifth Settlement, is one of the most sought-after areas for housing and investment, thanks to its excellent urban planning and developed infrastructure.
North Coast and New Alamein
With the expansion of tourism and residential projects in the North Coast, especially in areas like New Alamein and Ras El Hikma, demand for luxury properties and investments in holiday units is increasing.
6th of October City and Sheikh Zayed
These areas continue to attract significant buyer interest, especially with new projects and infrastructure developments making them preferred destinations for living and investment.
Expert Opinions on the Future of the Real Estate Market
Dr. Wael Abu Al-Saud believes that the stability of the Egyptian economy, improvement in the exchange rate, and stability of building material prices will keep price increases within the range of 10-15%.
Engineer Mohamed El-Bostany confirms that price increases will not exceed 25%, as they are tied to inflation and the stability of the Egyptian economy.
Engineer Tarek Shokry explains that the influx of foreign investments, such as from the Emirati sovereign fund, has contributed to stabilizing the market and increasing demand from Arab and foreign investors.
Strategies for Real Estate Developers to Face Challenges
Enhancing Financial Flexibility
Real estate developers should provide self-funding alternatives to reduce reliance on high-interest bank loans.
Offering Flexible Payment Plans
Attracting more buyers can be achieved by offering flexible installment plans that extend up to 10 years.
Digital Transformation and Online Marketing
Utilizing modern technology in marketing, such as virtual tours and digital presentations, can help attract potential customers.
Developing Sustainable Projects
Focusing on eco-friendly construction and renewable energy can serve as an additional attraction factor.
