Egypt's real estate market is witnessing mounting pressures in its resale segment, as shifting economic conditions reshape investor behaviour and strain client purchasing power, according to Abd Elrahman Abozeid, Senior Sales Team Leader at Taskeen. Abozeid noted that resale activity has slowed sharply in recent months, with many buyers struggling to keep up with instalment payments. "A significant portion of today's buyers are investors and flippers who entered the market expecting rapid returns. But with resales nearly at a standstill, many now face challenges in liquidating their assets," he said. Flipping—where investors purchase units at launch with a small down payment, then resell before completion to capture appreciation—has been particularly common in New Cairo, the New Administrative Capital, and the North Coast. However, slowing demand and an oversupply of luxury units are leaving many investors exposed to ongoing payment burdens. "This slowdown is a warning sign that the market needs more sustainable financing mechanisms and a stronger focus on genuine end-user needs," Abozeid added. Market observers estimate that speculators account for over 60% of demand in Egypt's property sector. But expectations of quick windfall profits have weakened as economic conditions shift. In response, developers are extending instalment plans—now averaging 14 years and, in some cases, exceeding 15 years—in an effort to sustain sales and preserve real estate's reputation as a safe store of value. Looking ahead, Abozeid stressed the importance of adapting to current realities. "If the industry embraces flexible financing and develops products that match the purchasing power of real buyers, it can overcome these challenges and restore balance," he concluded.
