The outlook for the real-estate sector this summer remains unclear, even as the summer season marks the annual peak in sales due to increased demand from expats who return to the country for their summer holidays. Interest typically grows in properties on the North Coast and the Red Sea during the holiday season.
Ahmed Shalaby, CEO of Tatweer Misr, a real-estate developer, said that market indicators at the start of the season are positive. He pointed to the company’s LE12 billion in contracted sales during the first half of 2025, generated through the sale of some 700 units, including 280 in Mostakbal City, 190 in Ain Sokhna, 160 towards the beginning of the North Coast Road, 40 in a project between Ras Al-Hekma and Marsa Matrouh, and 30 in two other North Coast projects.
The company delivered 700 units during the first half of the year, out of a planned total of 2,000 units for 2025, he added.
Real-estate development expert Tarek Bahaa said there are positive indicators in the market, noting that several companies have recorded strong sales on the North Coast and in New Mansoura. He pointed to challenges, however, stressing the importance of distinguishing between the primary market, dominated by developers and major real-estate companies, and the secondary market, which involves the resale of units.
The primary market currently benefits from extended installment plans, whereas the secondary market is much slower, primarily due to high prices, now estimated in the tens of millions. As a result, buyers with available liquidity, unless compelled to purchase for immediate personal use, tend to prefer the primary market, turning to large developers who offer attractive terms such as down payments as low as 2.5 per cent and installment periods ranging from 10 to 15 years, he explained.
This reflects a shift in the culture of real-estate demand in Egypt. Today, buyers are increasingly focused on the installment amounts and their capacity to afford them, rather than on the unit’s total price or cost per square metre, Bahaa said. He added that during the summer season, comparing sales on the North Coast and the Red Sea to those in other cities such as New Cairo, 6 October, Sheikh Zayed, or the New Administrative Capital is not relevant, since the dynamics of demand in coastal areas differ significantly from those in other areas.
Mohamed Magdi, director of investment research at Al-Ahly Sabbour, a developer, said that preliminary indicators from the first half of the year suggest that 2025 sales will closely mirror those of 2024, with marginal increases. While some may interpret this as a negative sign, Magdi views it as a positive indication of market stability. Such steadiness, he added, allows for more predictable returns and risk assessment, enabling rational, measured investment and purchasing decisions.
He noted, however, that prices remain high and that there is an abundant supply of luxury housing across all the new cities and along the North Coast. This oversupply may contribute to a slower pace of purchasing by customers. But he considers this variety to be a positive development, offering buyers a wider range of options suited to their financial abilities.
Osama Saadeddin, a consultant to the Real Estate Development Chamber, pointed to changes in the real-estate market and the nature of demand, which had led developers to offer extended installment plans designed to lower monthly payments in line with customers’ financial abilities.
He said that developers cannot afford to halt construction across multiple projects because a slowdown in the sector would have severe consequences for overall investment and both direct and indirect employment.
As a result, the major developers are compelled to maintain the momentum, launch new projects, and ensure continued cash flow in the sector. According to Saadeddin, the solution lies in prolonging payment terms and reducing installment values, even if this proves difficult in the short term.
Saadeddin noted that it is misleading to compare sales volumes in Sheikh Zayed and New Cairo with those on the North Coast, as the demand for primary residences differs fundamentally from that for second homes, particularly amid growing interest from foreign clients and Egyptians living abroad.
He added that current circumstances call for an intervention from the Ministry of Housing to negotiate appropriate support mechanisms, much as it has done in the past through constructive dialogue with developers.
Mohamed Fouad, a member of the Board of Directors of the Egyptian-British Businessmen’s Association, said that some major developers are pricing their units at the equivalent of $7 million. As a result, the targeted clientele for such properties is not aligned with the realities of the domestic market.
He added that these developers may feel compelled to maintain their high prices to preserve their market position. However, those who are able to sustain this pricing strategy likely have sufficient liquidity to uphold the financial stability of their projects until the market stabilises and balance is achieved between local purchasing power and current price levels.
* A version of this article appears in print in the 14 August, 2025 edition of Al-Ahram Weekly
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