Since the beginning of 2025, Egypt’s real estate sector has witnessed significant transformations driven by ambitious government decisions aimed at boosting economic growth and meeting citizens’ housing and investment needs. These decisions have included launching new housing units, developing infrastructure, and providing incentives for real estate developers, all of which have had a notable impact on the market.
New Housing Units Initiative
On February 25, 2025, Prime Minister Mostafa Madbouly announced a plan to offer 400,000 housing units under the presidential initiative “Housing for All Egyptians” after Eid Al-Fitr. This initiative aims to provide affordable housing for citizens and bridge the gap between supply and demand in the real estate market. This move is expected to stimulate the market and accelerate construction activities.
New Administrative Capital Development
The New Administrative Capital (NAC) has received increasing government attention in the early months of 2025. On February 22, the Administrative Capital for Urban Development (ACUD) announced its readiness to offer land plots in the “Second Financial District” at a price of EGP 32,000 per square meter. This offering aims to attract local and foreign investments and strengthen NAC’s position as a financial and economic hub.
Additionally, ACUD is targeting investments worth EGP 55 billion to complete infrastructure and major projects throughout the year, with expected profits reaching EGP 30 billion in 2025—an increase of 15% from the previous year. These figures reflect the ambitious plans to develop the New Administrative Capital and transform it into a leading investment destination.
Facilitations for Real Estate Developers
On January 18, 2025, ACUD considered granting new incentives for committed real estate developers. These incentives are designed to support developers in completing their projects within set timelines and to strengthen trust between the public and private sectors. This step is expected to accelerate construction activities and increase property supply.
Foreign Partnerships and Investments
The Egyptian real estate sector has witnessed an increase in foreign partnerships and investments. On February 26, 2025, German company Symrise signed an agreement to acquire a 30,000-square-meter land plot in the E2 area of Giza, in collaboration with the Industrial Development Group (IDG). This investment highlights growing foreign investor confidence in the Egyptian market, facilitating technology transfer and creating new job opportunities.
Real Estate Market Forecast
Given these developments, reports predict a price increase of 10% to 15% in Egypt’s real estate market during 2025. This surge is attributed to rising construction costs and increased demand for residential and commercial units. The upward trend is expected to persist as national projects continue and investments flow into the sector.
Impact of Government Decisions on the Real Estate Sector
Successive government decisions have significantly strengthened confidence in Egypt’s real estate market. The launch of new housing units has helped meet the needs of a broad segment of citizens, while the incentives offered to developers have accelerated project execution and mitigated challenges. Additionally, foreign investments have diversified the investor base and enhanced market competitiveness.
Potential Challenges
Despite these positive developments, the real estate sector faces some challenges. Rising construction material costs may lead to higher property prices, potentially affecting citizens’ purchasing power. Additionally, some projects may experience delays due to financial or administrative challenges. Therefore, continued collaboration between the government and the private sector is essential to overcome these obstacles and ensure sustainable growth in the industry.
Conclusion
In the first 60 days of 2025, the Egyptian government has played a pivotal role in supporting and revitalizing the real estate sector through a series of strategic decisions and initiatives. These efforts have been instrumental in increasing investments, accelerating projects, and addressing housing needs. With sustained government commitment, Egypt’s real estate sector is expected to continue its growth and prosperity in the coming years.