Improved economic and market conditions are driving a positive short-to-medium-term outlook for Egypt’s residential sector, as reported by real estate research agency JLL.
The country’s growing inflows of foreign direct investment (FDI) and rising interest from Gulf Co-operation Council countries are boosting confidence in Egypt’s real estate sector. This influx of capital and international trust signals optimism about Egypt’s economic potential and property market, according to the JLL report.
“Egypt, after a turbulent start to the year, saw inflation dissipate, greater currency stability, and public sector reforms enacted, which drove GDP growth of 2.9 per cent. With inflation expected to moderate further, where forecasts show as lowdown from 28.3 per cent in 2024 to 17.8 per cent, alongside FDI from a number of neighbouring countries, Egypt’s GDP growth rate is expected to accelerate and reach 4 per cent in 2025,” read the JLL report, a copy of which was made available to The Egyptian Gazette.
A potential material decline in base rates could further ease inflation beyond current forecasts, potentially driving even higher economic growth rates.
NAC drives residential sector
According to the report, Cairo’s residential sector experienced robust growth in the past year, with the completion of roughly 24,000 new units, bringing the total residential inventory to approximately 293,000units. Looking ahead to 2025, the sector is poised for further expansion, with plans to deliver close to32,000 additional units.
Notably, several projects in the R7 district of the New Administrative Capital (NAC) are expected to see their initial phases completed, provided no unforeseen construction delays occur. The residential sector retained its resilience throughout 2024, with rental rates outperforming the market and achieving higher demand and activity. Both 6th of October and New Cairo experienced a substantial average increase of approximately 108 per cent year-on-year.
“The secondary market also experienced growth in sales prices; however, that was more attributed to high inflation and homeowners rushing to match developer prices without considering factors like payment plans or affordability constraints,” it added.
