Egypt’s property market has recorded a major milestone, with real estate exports reaching $1.5 billion in 2025, a 200% increase from $500 million the previous year, according to Tarek Shoukry, Chairperson of the Real Estate Development Chamber at the Federation of Egyptian Industries and Deputy Head of the Housing Committee in Parliament. Shoukry attributed the sharp rise to growing interest from international buyers and improved market stability, while firmly rejecting ongoing speculation about a housing bubble.
Developer profits not excessive
Addressing criticism about developers’ profit margins, Shoukry stressed that publicly listed real estate companies, which are subject to strict financial reporting and taxation, typically achieve net profits of just 10–15% over project lifecycles lasting four to six years.
Breaking down the cost structure of a typical development, Shoukry said land acquisition accounts for 30–35% of total costs, while construction, infrastructure, and landscaping represent 35–45%. Marketing and sales costs contribute roughly 10%, with administrative and engineering expenses at 3–5%. Together, these elements make up around 90% of a unit’s value.
“When developers rely on bank loans, interest payments often consume another 5% of the margin, reducing profits to 7–8%, or even resulting in losses in some cases,” he added.
Market remains stable and balanced
Shoukry said the record-breaking sales seen in 2024 were unusual, driven by the currency flotation and a sharp rise in the US dollar, which encouraged many Egyptians to convert their savings into real estate.
In 2025, sales levels stabilised, returning to slightly above the average seen between 2020 and 2023. He also highlighted that property remains a long-term investment, with most investors and homebuyers holding assets for three to five years or longer.
No signs of a housing bubble
Responding directly to speculation about a potential housing bubble, Shoukry dismissed the claims as unfounded. He pointed out that similar warnings have circulated for over 25 years but have never materialised.
He also highlighted that property exports tripled in 2025, underlining Egypt’s growing appeal as a real estate destination. Maintaining transparency and investor confidence, he said, will be crucial to sustaining this momentum.
Following a meeting with Prime Minister Mostafa Madbouly and the government’s real estate advisory committee, Shoukry said three key conclusions emerged: there is no housing bubble, the sector remains strong, and increased cooperation between the government and private developers is vital to tackling ongoing challenges.
Demographic demand and affordability challenges
Egypt’s population of 110 million and approximately 900,000 marriages annually continue to fuel strong underlying demand for housing. However, Shoukry warned that affordability remains a concern, with rising monthly instalment payments putting pressure on many buyers.
To address this, he proposed a subsidised mortgage scheme aimed at making homeownership more accessible, particularly for the middle class. Under the proposal, each family would be entitled to one subsidised loan, with interest rates linked to unit size: 8% for homes up to 100 square metres, 10% for those between 100 and 150 square metres, and 12% for properties above 150 square metres.
Shoukry said, “State support through reduced interest rates should be seen as an investment, not a loss,” he added, arguing that higher home ownership drives tax revenues, job creation, insurance contributions, and demand across more than 100 related industries.
The proposal, which includes a full feasibility study, has already been submitted to the government. Prime Minister Madbouly has pledged to discuss it with the Central Bank Governor in the near future.
Real estate as a driver of economic growth
Shoukry concluded by linking the health of the property market to the wider economy. “When the property market is stable and growing, it sends a positive signal about the country’s economic health,” he said. He warned that slowdowns, often triggered by unfounded rumours, can cause unnecessary disruption — as seen in 2001, 2008, and 2011.
He emphasised that real estate continues to be a cornerstone of Egypt’s economy, employing around 25% of the workforce, contributing over 20% of GDP, and acting as a vital engine for domestic industry and development.
