Egypt's resilient real estate market signals long-term potential, attracts foreign investors: JLL

Daily News Egypt

13-04-2025

Egypt has re-emerged as a resilient and attractive investment destination, particularly for international buyers, following a period of economic volatility and currency fluctuations in 2024. This renewed optimism was highlighted during JLL's 'Navigating Egypt's Real Estate Ecosystem in a Global Economy' event held in Cairo.
With Egypt's GDP projected to grow by 4.8% in 2025, the outlook aligns with the broader positive momentum seen across the Middle East and Africa (MEA) real estate landscape. Key drivers include rapid economic diversification, transformative infrastructure developments, and an increasing focus on digital connectivity.
While recent improvements in currency stability, easing inflation, and vital public sector reforms have contributed to accelerated economic growth, analysts at the JLL event emphasized that Egypt's long-term real estate appeal is anchored in structural strengths it shares with other thriving global markets. These strengths are reshaping the property landscape and reinforcing the country's investment credentials.
'Egypt's real estate sector has weathered economic headwinds and policy tightening, but prospects for 2025 are increasingly encouraging,' said James Allan, CEO of JLL Middle East and Africa, in his keynote address. 'Lower inflation, rising foreign direct investment, and a more stable Egyptian pound are reviving investor interest. We anticipate Cairo's hospitality and residential sectors will lead growth in the coming year, supported by the government's commitment to fostering a strong investment climate.'
Egypt's appeal lies in its combination of high rental yields, dynamic business opportunities, rich cultural experiences, and modern amenities—particularly in metropolitan hubs like Cairo. Landmark projects such as the New Administrative Capital and a range of upscale waterfront developments are capturing the attention of foreign investors, offering lifestyle advantages, potential holiday rental income, and exclusive retirement options.
With global inflationary pressures subsiding, Egypt is also benefitting from lower construction costs, enhancing the viability of new real estate projects. JLL forecasts continued positive growth in 2025, with evolving market conditions influencing buyer behaviour and preferences.
However, despite the strong outlook, industry leaders cautioned that challenges remain. Fluctuations in the Egyptian pound, complex administrative processes for foreign buyers, and ownership restrictions in certain areas still present hurdles. To maintain investor confidence and support continued foreign capital inflows, speakers at the event advocated for legal reforms, streamlined property acquisition procedures, and broader adoption of digitised systems.
Recommendations to bolster international appeal included launching targeted marketing campaigns, developing niche segments, enhancing property management services, and improving digital infrastructure.
In his closing remarks, Ayman Sami, Country Head of JLL Egypt, stated: 'The government's proactive efforts to improve the investment environment are yielding tangible results. The rise in foreign direct investment is a clear vote of confidence in Egypt's real estate sector. While rising construction costs will continue to influence pricing, Egypt remains well-positioned to attract cross-border capital, thanks to its strong fundamentals. To maintain our competitive advantage, we must continue adapting to the global investment climate.'
JLL experts also pointed to ongoing supply constraints that are pushing up both rental and sales prices for residential units in key areas such as New Cairo and 6th of October City. While new developments are underway, demand continues to outpace supply. Meanwhile, Cairo and Giza's hospitality sectors remain promising investment avenues, with planned completions in 2025 set to soar from just 301 units last year to 2,017 units—a nearly seven-fold increase.