Egypt’s real estate market enters 2026 with greater maturity after year of ‘repositioning’: arD
The Association of Real Estate Developers (arD) has released its first annual report reviewing the performance of Egypt’s real estate market in 2025 and outlining expectations and policy recommendations for 2026.
Based on insights from senior industry leaders and members of the association’s board, the report provides a comprehensive assessment of market dynamics, challenges and emerging opportunities.
According to the report, 2025 should not be viewed as a year of slowdown but rather as a period of “repositioning” for the real estate sector. Despite mounting pressures from rising construction costs and volatility in building material prices, the market demonstrated notable resilience—particularly in new urban communities across East and West Cairo.
These challenges triggered what arD described as a “natural filtration process”, differentiating financially solid, well-governed developers from those lacking clear risk management and operational discipline.
Looking ahead, the association expects 2026 to usher in a more mature and stable phase for the market, supported by improved economic visibility, the gradual return of investor confidence, and growing demand for integrated, mixed-use developments. Demand is also expected to rise for mid-priced housing units, alongside deeper and more structured partnerships between the state and the private sector.
The report highlighted several positive indicators. Mohamed El Bostany, Chairperson of arD, said 2025 witnessed clear market dynamism, driven by sustained demand for residential, commercial, administrative and hospitality units, particularly in Greater Cairo.
He added that the continued momentum in the tourism sector, especially with the opening of the Grand Egyptian Museum, has acted as a key catalyst for investor interest and tourism-related real estate demand.
Large-scale investment deals, including Ras El-Hekma and Alam El-Roum, were cited as pivotal developments that have strengthened Egypt’s standing on the global real estate investment map and reinforced the concept of exporting Egyptian property. These mixed-use projects, the report noted, align closely with evolving market needs and enhance the international competitiveness of Egypt’s real estate offerings.
From a pricing perspective, Ahmed Amin Massoud, Vice Chairperson of arD, said residential unit prices rose by between 20% and 30% in 2025 compared with the end of 2024, particularly in New Cairo, the New Administrative Capital and coastal destinations. Total sales by major developers reached nearly EGP 290bn in the first quarter of 2025, marking a 23% year-on-year increase.
Rental yields also improved, averaging 6.7% nationwide, with higher returns recorded in fully serviced and well-developed areas.
For 2026, arD expects more moderate price growth of between 8% and 12%, alongside rising demand for small and mid-sized units and mixed-use developments. Developers are encouraged to diversify their offerings, better align products with the needs of the middle-income segment, and introduce longer and more flexible payment plans to address affordability challenges.
Regulation emerged as a central theme of the report. arD stressed that 2026 is likely to be a pivotal year for real estate legislation, with Parliament expected to issue a package of laws governing off-plan sales, safeguarding buyers’ funds, and enhancing transparency across the sector. The association views this legislative push as essential for stabilising the market and ensuring sustainable long-term growth.
The report concludes that Egypt’s real estate market is entering 2026 with greater maturity, stronger discipline and enhanced long-term potential, positioning the sector as a key pillar of the national economy and an increasingly attractive destination for both domestic and foreign investment.
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