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gypt's real estate market is expected to face a surge in prices in 2025, despite recent dips in construction material costs like steel and cement. Economic factors such as high inflation and interest rates will likely drive up financing and investment costs, prompting developers to forecast price hikes of 10-30%. This outlook reflects a balanced view among developers, who acknowledge that while declining input costs may ease their financial burden, inflation and financing policies remain the dominant forces shaping the market.

    Osama Saad El-Din, Executive Director of the Real Estate Development Chamber, predicts a 20-25% price increase in 2025. He emphasizes that maintaining prices above previous levels is crucial for developers to ensure profitability and investment returns. Many developers have already set prices based on inflation expectations and return on investment, ensuring they at least match inflation and interest rate increases.

    Mohamed El Aasar, Chairperson of Margins Developments, highlights the significant challenges facing the real estate sector in 2025, including maintaining prices amid economic pressures and delivering projects on time. He predicts a price increase of no less than 30%. Mohamed Amin, CEO of Cratos Real Estate, forecasts price increases between 15% and 25%, driven by strong demand and high purchasing rates.

    Amin notes that areas like New Cairo and the North Coast will see the highest demand in 2025 due to rapid development and investor interest. He also points out a growing demand for residential units and serviced apartments, which offer benefits for both living and investment purposes. Sherif Mahgoub, a financial expert, suggests that developers have adapted to sluggish sales by targeting high-income buyers with luxury projects or offering incentives like extended installment periods.

    Mahgoub believes any significant price increases will depend on factors such as currency devaluation or renewed inflationary waves, which could drive more investors back to real estate. He emphasizes the need for balanced policies to support demand and concludes that developers must continue to offer innovative solutions to stimulate sales in the current economic conditions.