Egypt's residential real estate market has experienced one of its steepest price surges in over a decade during the first half (H1) of 2025, with average unit prices climbing by 20% to 30% compared to late 2024. In some of Cairo's prime districts and along the North Coast, prices have reached record levels, surpassing EGP 200,000 per square metre. This sharp rise comes as a result of several overlapping factors. The significant depreciation of the Egyptian pound against the US dollar in early 2024 has raised the cost of imported building materials, energy and finishing components, forcing developers to adjust prices upwards to protect profit margins. At the same time, annual inflation, which hovered above 30% into 2025, has driven up wages, transportation and raw material costs, further inflating construction expenses. Land scarcity has also played a critical role. In high-demand areas such as East and West Cairo and the North Coast, limited availability of prime plots has intensified competition among developers, pushing prices higher. The surge in speculative demand, as investors seek real estate as a hedge against inflation and currency volatility, has added further pressure to an already tight market. Meanwhile, rising financing costs and higher prices for steel, cement and finishing materials have led many developers to revise their pricing strategies, particularly for new project phases. Despite these challenges, the market has shown remarkable resilience. According to The Board Consulting, the top 10 real estate developers in Egypt recorded combined sales of approximately EGP 290 billion in the first quarter of 2025, up 23% from EGP 235 billion in the same period last year. Around 18,500 units were sold in the quarter at an average price of EGP 15.7 million per unit, reflecting a 25% year-on-year increase, particularly in the upper-middle and luxury segments. Some of the most significant price hikes were recorded in East Cairo's Fifth Settlement, where prices per square metre ranged from EGP 60,000 to over EGP 200,000. The fast-growing Sixth Settlement also saw average prices rise to between EGP 120,000 and EGP 160,000, an 18% increase in just the first four months of the year. In West Cairo, prices ranged from EGP 50,000 to EGP 170,000, underlining the continued strength of demand in both established and emerging districts. The North Coast remains a major hotspot, supported by the momentum following the announcement of the Ras El Hekma development deal. Prices in the area now range from EGP 70,000 to EGP 200,000 per square metre, while premium secondary market units have reportedly changed hands for between EGP 800m and EGP 1bn. Emerging areas such as El Obour City have also witnessed notable increases, with prices rising from around EGP 7,000 per square metre in 2023 to roughly EGP 35,000 in 2024. Meanwhile, residential prices in the New Administrative Capital have ranged between EGP 50,000 and EGP 70,000 per square metre, depending on factors such as developer reputation, construction progress and project scale. The initial driver behind the sharp rise in prices was the early 2024 currency devaluation, which prompted developers to adjust pricing models. Although there was a brief period of price consolidation following a temporary stabilisation in exchange rates, prices resumed their upward trend in the second half of the year, registering further increases of 15% to 30%. Looking ahead, market forecasts indicate that property prices could continue to rise by another 20% to 30% through the rest of 2025, as inflationary pressures and elevated construction costs remain significant. This is despite recent interest rate cuts by the Central Bank of Egypt, which reduced rates by a total of 3.25% in April and May. Developers continue to price projects based on a combination of regional demand, rising input costs and competitive benchmarking, leading to substantial variations across districts and segments. Yet flexible payment plans and long-term instalment options have allowed the market to absorb these price increases, reflecting sustained demand and long-term confidence in Egypt's residential real estate sector — even in the face of ongoing economic volatility.
