As Egypt’s real estate market navigates a period of economic and policy reforms, demand in the rental sector continues to strengthen.
With developers maintaining a steady pace in delivering phases within their master-planned projects, approximately 7,300 units were completed in Q2 2025, according to a recent report by real estate research agency JLL.
This has increased total stock to around309,100 units, with an additional 21,750 units scheduled for delivery during the second half of the year. According to the JLL report, this directly impacts buyer affordability, signaling that sellers may need to further adjust their asking prices to align with what buyers are realistically willing or able to pay.
“The government has recently announced an increase in VAT on construction services, raising it from 5% to the standard14%. Combined with the removal of gas subsidies by year-end, this is expected to drive up the cost of construction materials over the coming year. As a result, these regulatory changes may impact project timelines and reshape pricing strategies,” read the report, a copy of which was made available to The Egyptian Gazette.
The agency said developers are likely to face continued cost pressures, prompting them to raise off-plan prices and pass on some of these increases to end-users in an effort to offset financial losses.
“Moreover, with project launches slowing in Cairo, a growing number of local and regional developers are shifting their focus to other Egyptian cities, particularly the North Coast and the Red Sea, due to their strong investment potential. In parallel, several Egyptian developers are also expanding beyond national borders, entering markets like the UAE and Saudi Arabia in pursuit of portfolio diversification, risk mitigation, and higher returns,” it added.
On the performance front, both sales and rental growth rates have aligned closely with prevailing inflation figures, which averaged around 15.2per cent in Q2. Sales prices in the second quarter increased by approximately 18 per cent in 6th of October and 15.9per cent in New Cairo on a year-on-year basis.
