The Association of Real Estate Developers (arD) released its first annual report on the performance of Egypt’s real estate market in 2025, along with forecasts and policy recommendations for 2026.
The report provides a comprehensive assessment of the market, highlighting both the challenges and opportunities in the sector. It describes 2025 not as a period of slowdown but as a year of “repositioning,” noting that the market demonstrated resilience despite rising construction costs and material prices, particularly in urban communities in eastern and western Cairo. The report also pointed to a “natural selection process” that distinguished financially strong developers from others.
The association anticipates a more stable and mature market in 2026, supported by clearer economic outlooks, increased demand for integrated projects, and growing public-private partnerships. There is also a rising need for mid-priced housing units.
The report highlighted clear dynamism in 2025, driven by ongoing demand for residential and commercial properties, fueled by tourism growth and the opening of the Grand Egyptian Museum. It also emphasized significant projects such as Ras El Hikma and Alam Al Rom, which strengthened Egyptian real estate exports.
Residential unit prices increased by 20% to 30% compared to the end of 2024. Sales by major developers reached EGP 290 billion in Q1 2025, marking a 23% annual growth, while rental yields improved to an average of 6.7%.
For 2026, the report expects price growth of 8% to 12% and higher demand for small and medium-sized units. It recommends that developers diversify their offerings and provide flexible payment plans to meet the needs of the middle class.
The report also emphasized the importance of regulation in 2026, with upcoming legislation aimed at enhancing transparency, protecting buyers, and promoting sustainability. It concludes that the Egyptian real estate market is moving toward greater maturity and stability, reinforcing its role as an economic cornerstone and enhancing its attractiveness to investors.
