Egypt’s real estate sector is entering 2026 amid a climate of anticipation and caution, as pressures from inflation, rising construction material costs, and increasing land prices persist, while genuine and growing demand for housing and investment continues.
Despite the declining likelihood of price drops, the market is moving toward relative stability, supported by the introduction of flexible payment plans and carefully considered interest rate reduction measures. This strengthens the real estate sector’s position as one of the safest and most value-preserving sectors in the Egyptian economy, according to the views of several real estate developers.
Price Declines Ruled Out
Well-known businessman Hisham Talaat Moustafa pointed to the continued demand for real estate in Egypt for at least the next thirty years, citing the existence of one million marriages annually, around 200,000 of whom are financially capable of purchasing housing units. This creates an annual demand exceeding 900,000 units.
Moustafa stressed that the idea of declining real estate prices in Egypt is “unrealistic,” emphasizing the uniqueness of the local market, which is driven by strong and genuine annual demand. This, he explained, keeps real estate values insulated from any substantial decline.
During his remarks to media personality Amr Adeeb, he also highlighted that high construction costs—resulting from rising land prices and the cost of materials such as steel, cement, and petroleum—make any price reduction extremely difficult.
Reasons Behind Persistently High Prices
Karim Melesh, CEO of a real estate development company, noted that 2025 witnessed significant challenges in the real estate market, yet it also offered distinctive opportunities for developers capable of responding flexibly to economic conditions.
He went on to confirm that with the start of 2026, real estate prices are unlikely to decline due to the continued rise in raw material costs and land prices, alongside noticeable increases in fees and land legalization costs.
He further explained that real estate will remain the most stable and secure investment for Egyptians, as ongoing genuine demand for purchasing—whether for housing or investment purposes—keeps the sector resilient. He also expected areas such as the North Coast to see higher price increases than Cairo and inland regions, driven by strong investment momentum and major projects there.
Regarding hedging strategies, Melesh confirmed that his company is currently developing projects without immediately offering them for sale, as a way to mitigate potential market fluctuations.
Expected Growth in 2026
For his part, Engineer Ahmed Amin Massoud, Vice Chairman of the Real Estate Developers Association, expected the sector to experience positive growth during 2026, but at a more stable pace compared to 2025.
He pointed to the strong growth witnessed in the previous year, which led to price increases ranging between 20% and 30%, particularly in areas such as New Cairo, the New Administrative Capital, and coastal regions.
