They argue that rising prices largely reflect higher construction and financing costs rather than speculative excess, with sustained demand from local buyers, Egyptians abroad, and Gulf investors continuing to underpin the sector.
Abdel Rahman Khalil, a real estate development expert, said no indicators were pointing to an imminent bubble in Egypt’s property market. Speaking to Ahram Online, Khalil said the sector remains structurally resilient and well-positioned for growth in the coming years.
He attributed this resilience in part to how property ownership is embedded in Egyptian social and economic life. “Land and property are not viewed simply as financial assets,” Khalil said. “They are part of the social fabric that people seek to protect and preserve.”
Khalil rejected comparisons with past housing crises, including those in the United States and Dubai in 2008. Egypt’s market, he said, is driven by end-user demand rather than leveraged speculation.
“There are no real indicators supporting the existence of a property bubble in Egypt,” he said, noting that most purchases are made through down payments followed by long-term instalment plans secured by post-dated cheques.
He added that economic stabilization in 2025, following years of domestic and external shocks, has helped revive real estate activity. Sales, he said, have rebounded above historical averages as households and investors channel savings into property as a hedge against inflation and currency volatility.
Demand from Egyptians working abroad has also increased, alongside growing interest from foreign buyers, Khalil said, particularly as large-scale development projects reshape key coastal areas.
Looking ahead, Khalil described the period between 2026 and 2035 as potentially one of the strongest decades for Egypt’s real estate market, citing major deals under discussion with foreign investors, investment portfolios, and European funds.
He also pointed to a rise in hotel and hospitality-linked real estate, saying recent regional developments and the opening of the Grand Egyptian Museum (GEM) have drawn renewed attention to Egypt as an investment destination. In response, some residential units have been converted into hotel properties to meet growing demand.
Rising investor appetite
Khalil said landmark deals such as Ras El-Hekma on the North Coast and Alam Al-Roum on the Red Sea have significantly boosted foreign investor interest, particularly from Qatar and Kuwait.
The real estate sector, he added, remains a key driver of the broader economy due to its close links with construction and related industries, among the most labour-intensive sectors in the country.
In February 2024, Egypt signed its largest-ever direct investment agreement with the UAE to develop the Ras El-Hekma project, valued at $35 billion, with total investments projected to reach $150 billion over the life of the development. In November 2025, the government also signed a major agreement with Qatar Diar to develop the Alam Al-Roum area on the Red Sea coast, covering nearly 5,000 feddans, or about 20.6 million square metres, with estimated investments of $29.7 billion.
According to Khalil, the real estate sector is central to the state’s goal of expanding urban development to 14 percent of Egypt’s total land area, up from about six percent previously. He said the current figure has already surpassed 10 percent, driven by partnerships between the government, private developers, and foreign investors.
Red Sea versus North Coast
While the North Coast continues to dominate the market, Khalil said significant opportunities remain, particularly west of Marsa Matrouh, as part of the North-Western Coast development plan.
The North Coast accounted for roughly 55 percent of Egypt’s total real estate sales in 2024, he said. However, he expects the Red Sea region to increase its share and begin competing more directly with the North Coast in sales volumes between 2026 and 2027.
A promising market
Mahmoud Gad, head of research at Arab African International Securities, said growing foreign and Gulf interest reflects confidence in Egypt’s real estate market as a source of long-term returns, despite risks inherent to all emerging markets.
“Investors face risks in their domestic markets as well,” Gad told Ahram Online. “The risks associated with Egypt are familiar and manageable for global investors.”
Gad said the sector’s strength is underpinned by Egypt’s strategic location and large population base, pointing to what he described as a genuine, demand-driven property market.
He added that the sector’s performance comes after Egypt weathered a prolonged period of instability, including political upheaval, the COVID-19 pandemic, and global shocks linked to the war in Ukraine and regional conflicts.
According to Gad, recent economic stabilization—including greater exchange-rate clarity—has improved resource allocation and investor confidence.
Tourism, he said, continues to support the property market, particularly in coastal and hospitality-linked developments. Gad noted that Egypt’s benchmark EGX 30 index rose from around 28,000 points before the Ras El-Hekma deal to about 42,000 points, driven by gains across several sectors, including real estate.
Despite the sector’s strong fundamentals, Gad said many real estate stocks remain undervalued, partly due to lingering concerns about a potential market bubble.
He rejected those concerns, arguing that price increases are driven by tangible factors such as higher financing costs and rising construction material prices. If demand softens, he said, developers typically respond by extending payment plans and moderating price increases rather than triggering abrupt corrections.
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