Real Estate & Property Investments in Hurghada and Egypt | Lincom Investments

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Introduction

In 2025, Egypt’s real estate market stands on the threshold of significant transformation, opening new opportunities for investors and property owners. In recent years, the sector has undergone substantial changes, driven by demographic growth, economic stabilization, and large-scale infrastructure projects. Amid a challenging global economic environment, Egypt’s real estate market continues to show steady growth, attracting both local and foreign investors.1

A key driver of the industry’s development is the country’s rapid population growth, accompanied by accelerated urbanization and increasing demand for quality housing and commercial spaces. A young population, the aspiration for improved living conditions, and migration to new cities form a solid foundation for the market’s expansion. According to official forecasts, by 2025, demand for residential and commercial properties is expected to rise, fueling growth in both traditional and emerging locations.2

The state plays a crucial role in shaping the investment climate of Egypt’s real estate market. Major projects such as the New Administrative Capital, New Alamein, and the development of the North Coast not only contribute to the expansion of housing stock and infrastructure but also attract significant foreign investment. Strategic government support—aimed at simplifying property acquisition procedures for foreigners, implementing large-scale urban development initiatives, and improving transportation infrastructure—creates favorable conditions for long-term investment.3

At the same time, economic challenges such as inflation, rising construction material costs, and fluctuations in the Egyptian pound impact pricing and investment strategies. Despite these hurdles, Egypt’s real estate sector remains one of the most attractive investment avenues in the MENA (Middle East and North Africa) region. Experts forecast property price growth of 10–30% in 2025, driven by a combination of economic factors and strong buyer demand.4

A key factor enhancing the market's appeal is the growing interest from foreign investors, including those from Arab countries, Europe, and North America. More than 50% of current market demand comes from overseas buyers, boosting foreign currency liquidity and stimulating the development of high-end residential and commercial projects. Alongside this, the rising popularity of rentals—especially in tourist hotspots like the North Coast, Soma Bay, and Hurghada—opens new avenues for generating stable rental income.5

In parallel with traditional demand, new housing formats are gaining traction, including residential complexes with developed infrastructure, smart cities, and projects focused on sustainability and environmental design. A notable example is El Gouna, a unique resort town internationally recognized for its sustainable construction and eco-friendly solutions.6

Thus, Egypt’s real estate market in 2025 represents a mix of diverse segments with varying levels of risk and return—where state ambitions, the interests of both foreign and local investors, and the broader economic realities converge. Analyzing the key drivers and investment prospects allows for a comprehensive understanding of the current landscape and helps identify optimal strategies for investment in this dynamic sector.

Key Drivers of Egypt's Real Estate Market Development in 2025

In 2025, Egypt's real estate market continues to show dynamic growth, driven by a number of key factors that influence demand, supply, and the sector’s investment appeal. Let's take a look at the main drivers shaping the current trends in Egypt's real estate market:

Economic and Financial Factors

In 2025, Egypt's real estate market faces challenges related to inflation and currency fluctuations, which impact the purchasing power of both investors and consumers. However, despite economic difficulties, real estate remains an attractive asset, valued for its stability, ability to preserve capital, and potential for generating returns. Property prices are projected to rise by 10–30% in 2025, driven by inflation, increasing production costs, and high interest rates.7

Development of New Cities and Infrastructure

Government initiatives to build new cities, such as the New Administrative Capital and New Alamein, are contributing to the growth of the real estate market. These projects include the construction of residential, commercial, and administrative properties, attracting both local and foreign investors. For example, 14 ministries and government agencies have already been relocated to the New Administrative Capital, boosting demand for real estate in the area.

Infrastructure Projects and Government Investments

Investments in infrastructure—such as the construction of new transportation networks, including railways and ports, as well as the development of energy infrastructure—play a key role in driving growth in the construction sector. Egypt’s construction market is expected to grow by 7% annually, reaching EGP 1.52 trillion in 2025, with projected continued growth at an annual rate of 5.6% through 2029.

Housing Demand and Investment Opportunities

Housing demand in Egypt continues to grow, particularly in cities with developing infrastructure and improved living conditions. The affordable housing segment is expanding, offering investment opportunities in residential projects targeting Egypt’s middle class.8

Attracting Foreign Investments

Foreign investments, especially from Gulf countries, play a significant role in the development of Egypt’s real estate market. Projects such as the construction of a $1 billion hydrogen skyscraper in the New Administrative Capital reflect Egypt’s ambition to become a hub for sustainable energy and attract international clients.
To provide a clearer understanding of the dynamics and impact of the key drivers in Egypt’s real estate market in 2025, the main statistical indicators are presented, reflecting economic, infrastructure, and investment factors. These data demonstrate price growth, investment activity, the expansion of new cities, and housing demand, collectively creating a favorable environment for sector development.

Driver Indicator Value (in 2025)
Property Price Growth Expected Price Growth 10–30%
Inflation Inflation Level ~18%
Investment Volume Foreign Investments in Real Estate + 15% by the year 2024
Construction Market Growth Construction Sector Growth 7% yearly growth
Population of Egypt Overall population 110M people
Urbanisation Urbanisation Level 43%
New Cities Amount of major new projects 3(New Admin. Capital, New Alamein, El Gouna)
Housing Demand Real Estate Demand Growth +12% compared to 2024
Average housing price growth In New Administrative Capital 25%
Share of Foreign Buyers In Total Demand ~50%

The expected property price growth of 10 to 30 percent is driven by the combined effects of inflationary pressures, rising construction material costs, and high demand, making real estate in Egypt an attractive asset for investors. At the same time, the steady growth of the construction sector—around 7 percent annually—and large-scale new city projects play a crucial role in expanding supply and improving infrastructure, further stimulating investment activity. A significant share of foreign investors—about half of total demand—creates additional demand and helps strengthen the market’s currency liquidity. Demographic trends, such as a population of approximately 110 million and an urbanization rate of 43 percent, support long-term sustainable housing demand, which forms the foundation for stable market development. Overall, the increasing investment activity in the real estate sector reflects a high level of investor confidence in the Egyptian market and government initiatives.

Egypt’s real estate market in 2025 is characterized by a combination of challenges and opportunities. Economic factors, such as inflation and currency fluctuations, affect purchasing power; however, ongoing infrastructure development, the creation of new cities, and the attraction of foreign investments contribute to rising demand for real estate. Investors and buyers should take these factors into account when making decisions about investing in Egypt’s property market.

Regions and Real Estate Market Segments in Egypt with the Greatest Potential in 2025

Egypt’s real estate market in 2025 is characterized by a diversity of regions and segments, each possessing its own unique investment potential. Growing demand, government support, and attractive conditions for foreign investors make certain locations and property types especially promising.

New Administrative Capital
This is one of Egypt’s most ambitious projects aimed at easing congestion in Cairo and creating a modern business and residential hub. In 2025, the capital continues to expand, driving strong demand for real estate:

  • Features: High-class infrastructure, smart technologies, administrative buildings, and premium residential complexes.
  • Investment Potential: Housing prices have increased by up to 25% over the past year, with active construction and an influx of foreign investments.9
  • Segments: Luxury apartments, office spaces, and commercial real estate.

New Alamein City
A city on the Mediterranean coast, positioned as a next-generation resort and residential center:

  • Features: Attractive seaside location, high-end residential complexes and resort facilities, well-developed infrastructure.
  • Investment Potential: Strong demand for luxury real estate, expected price growth, and increased interest from tourists and foreign buyers.10
  • Segments: Villas, apartments in residential and resort complexes, and hotel properties.

North Coast
A leisure area gaining popularity among both local and foreign buyers:

  • Features: High tourist activity in the summer, limited hotel supply, and a favorable climate.
  • Investment Potential: Property prices increased by 39% in 2024, with strong demand for vacation homes and rental properties.
  • Segments: Villas, townhouses, and sea-facing apartments.

Hurghada & Soma Bay
The Red Sea is one of Egypt’s tourist gems, with a growing resort real estate market:

  • Features: Increasing tourist flow (86% growth in Hurghada in 2022), active development of hotels and residential complexes.
  • Investment Potential: Residential property prices in Soma Bay rose by about 39%, strong demand for affordable housing in Hurghada.
  • Segments: Resort apartments, villas, rental apartments.

New Cairo
One of Cairo’s rapidly developing suburbs with well-established infrastructure:

  • Features: Modern residential complexes, commercial centers, educational institutions.
  • Investment Potential: Property prices increased by over 37%, with high demand for both residential and commercial properties.
  • Segments: Apartments, villas, office spaces.

Sheikh Zayed City
An elite suburb of Cairo, known for high living standards and premium real estate:

  • Features: Security, gated residential communities, developed infrastructure.
  • Investment Potential: Apartment prices grew by 46%, attracting affluent investors.
  • Segments: Premium villas, apartments.

High-Potential Market Segments

  • Premium and Business-Class Residential Properties: In demand in new cities and Cairo suburbs, as well as resort areas.
  • Resort Real Estate: North Coast, Soma Bay, Hurghada — popular for rentals and seasonal use.
  • Commercial Real Estate: Offices and retail spaces in new economic centers (New Administrative Capital, New Cairo).
  • Affordable Housing: Supported by government programs, this is a growing segment targeting the middle class.

The investment potential of Egypt’s real estate market in 2025 is concentrated in large infrastructure projects and resort areas with high tourist appeal. New administrative and residential centers provide long-term growth and stability, while the well-developed tourism sector drives short-term rental income. For investors, it is important to balance stability, profitability, and risk levels when choosing regions and market segments.

To provide a clear comparison of the investment potential across different regions and real estate segments in Egypt in 2025, a summary table is presented with key indicators: average price growth, demand levels, main characteristics, and primary property types. This data reflects market dynamics and helps identify where the main opportunities for investors are concentrated.

Table 2. Investment Potential of Key Regions and Segments in Egypt’s Real Estate Market in 2025

Region / Segment Average price growth in 2024-2025, %

 

 Estimated Demand Growth, % Key Features Main types of Real Estate
New Administrative Capital 25% 20% Modern Infrastructure, Administrative Hub Premium Housing, Offices, Commercial Properties
New Alamein 22% 18% Resort Location, High-End Developments Villas, Apartments, Resort Properties
North Coast 39% 25% Tourist Zone, Peak Season, Limited Hotel Supply Villas, Townhouses, Sea-View Apartments
Hurghada & Soma Bay 39% 30% Tourism Development, Strong Growth in Tourist Influx Resort Apartments, Villas
New Cairo 37% 22% Well-Developed Infrastructure, High Demand for Residential and Commercial Properties Apartments, Villas, Offices
Sheikh Zayed 46% 15% Elite Suburb, High Standard of Living Premium Villas and Apartments

The table shows that the highest price growth over the past two years has been recorded in prestigious suburban areas of Cairo, such as Sheikh Zayed (+46%), which is explained by limited supply and strong purchasing power among buyers. Resort zones on the North Coast, in Hurghada, and Soma Bay demonstrate equally high price growth (+39%), driven by increasing tourism and limited availability of vacation and rental properties.

The New Administrative Capital and New Alamein continue to develop rapidly as new centers with modern infrastructure and attractive investment conditions, showing steady growth in demand and prices. New Cairo, with its well-developed infrastructure, is also among the most dynamic regions.

The data indicate that resort real estate and premium residential complexes remain the most attractive to investors, offering diverse opportunities for both rental income and long-term capital appreciation.

chart

Figure 1 presents the key indicators of Egypt’s real estate market in 2025.

Figure 1. Key Indicators of Egypt’s Real Estate Market in 2025

Egypt’s real estate market in 2025 continues to demonstrate steady growth and possesses significant investment potential, driven by a combination of macroeconomic factors and large-scale government initiatives. Demographic growth, accelerated urbanization, and infrastructure development lay the foundation for stable demand for both residential and commercial properties. At the same time, the market is actively influenced by economic challenges — inflation, currency fluctuations, and rising construction costs — which create a new paradigm for pricing and investment strategies.

Conclusion

When analyzing investment opportunities in Egypt’s real estate market in 2025, Hurghada stands out as one of the most promising and optimal locations for investors and buyers. Thanks to its steady growth in tourist traffic—which increased by 86% in 2022—and the significant rise in prices for affordable and comfortable housing, Hurghada offers the advantages of both a resort city with high rental income potential and a location with relatively affordable property prices compared to more upscale destinations.

Unlike major metropolitan areas and new administrative centers, where high entry costs and complex infrastructure can pose additional risks and expenses, Hurghada offers a favorable combination of rapidly developing infrastructure, attractive natural surroundings, and strong demand from both local and international buyers. The city has already established itself as a stable market with high property liquidity and a wide range of investment options—from resort apartments to beachfront villas.

Moreover, government support for tourism and the systematic development of urban infrastructure create favorable conditions for long-term investments, making Hurghada not only an attractive tourist destination but also a reliable choice for preserving and growing capital. This combination of factors places Hurghada in an advantageous position compared to other regions of Egypt, making it an ideal location for those seeking a balance between profitability, affordability, and quality of life.

Thus, while Egypt's real estate market as a whole is developing rapidly and offers a variety of opportunities, Hurghada stands out as a unique region with an optimal balance of risk and potential. This makes it particularly attractive for investors and buyers who are focused on both profitability and comfort.

Sources:

  1. Bayut. (2025). Top Ideas to Invest in the Egyptian Property Market in 2025. URL: https://www.bayut.eg/mybayut/en/top-ideas-to-invest-in-the-egyptian-property-market-in-2025/ (date of access: May 17, 2025).
  2. Daily News Egypt. (2025). Real estate developers anticipate 10-30% price increases in 2025. January 5, 2025. URL: https://www.dailynewsegypt.com/2025/01/05/real-estate-developers-anticipate-10-30-price-increases-in-2025/ (date of access: May 17, 2025).
  3. Enterprise. (2025). What will Egypt’s real estate sector look like in 2025? January 8, 2025. URL: https://enterprise.news/egypt/en/news/story/7c1aead2-0b0d-432d-b6b5-b7c10ef35256/what-will-egypt%25e2%2580%2599s-real-estate%253cmark%253e-sector%253c%2Fmark%253e-look-like-in-2025%3F (date of access: May 17, 2025).
  4. Reimagining Travel: Finding Serenity and Sustainability in El Gouna. (2024). El Gouna — Egypt’s Green Town Award Winner.
  5. SandsofWealth. (2025). Egypt: Which Area? 10 hottest real estate areas in Egypt in 2025. Updated February 18, 2025. URL: https://sandsofwealth.com/blogs/news/egypt-which-area (date of access: May 17, 2025).

Footnotes:

  1. Enterprise. (2025). What will Egypt’s real estate sector look like in 2025? January 8, 2025. URL: https://enterprise.news/egypt/en/news/story/7c1aead2-0b0d-432d-b6b5-b7c10ef35256/what-will-egypt%25e2%2580%2599s-real-estate%253cmark%253e-sector%253c%2Fmark%253e-look-like-in-2025%3F (date of access: May 17, 2025).
  2. Bayut. (2025). Top Ideas to Invest in the Egyptian Property Market in 2025. URL: https://www.bayut.eg/mybayut/en/top-ideas-to-invest-in-the-egyptian-property-market-in-2025/ (date of access: May 17, 2025).
  3. SandsofWealth. (2025). Egypt: Which Area? 10 hottest real estate areas in Egypt in 2025. Updated February 18, 2025. URL: https://sandsofwealth.com/blogs/news/egypt-which-area (date of access: May >17, 2025).
  4. Daily News Egypt. (2025). Real estate developers anticipate 10-30% price increases in 2025. January 5, 2025. URL: https://www.dailynewsegypt.com/2025/01/05/real-estate-developers-anticipate-10-30-price-increases-in-2025/ (date of access: May 17, 2025).
  5. Enterprise. (2025). What will Egypt’s real estate sector look like in 2025? January 8, 2025. URL: https://enterprise.news/egypt/en/news/story/7c1aead2-0b0d-432d-b6b5-b7c10ef35256/what-will-egypt%25e2%2580%2599s-real-estate%253cmark%253e-sector%253c%2Fmark%253e-look-like-in-2025%3F (date of access: May 17, 2025).
  6. SandsofWealth. (2025). Egypt: Which Area? 10 hottest real estate areas in Egypt in 2025. Updated February 18, 2025. URL: https://sandsofwealth.com/blogs/news/egypt-which-area(date of access: May 17, 2025).
  7. Enterprise. (2025). What will Egypt’s real estate sector look like in 2025? January 8, 2025. URL: https://enterprise.news/egypt/en/news/story/7c1aead2-0b0d-432d-b6b5-b7c10ef35256/what-will-egypt%25e2%2580%2599s-real-estate%253cmark%253e-sector%253c%2Fmark%253e-look-like-in-2025%3F(date of access: May 17, 2025).
  8. Bayut. (2025). Top Ideas to Invest in the Egyptian Property Market in 2025. URL: https://www.bayut.eg/mybayut/en/top-ideas-to-invest-in-the-egyptian-property-market-in-2025/ (date of access: May 17, 2025).
  9. Enterprise. (2025). What will Egypt’s real estate sector look like in 2025? January 8, 2025. URL: https://enterprise.news/egypt/en/news/story/7c1aead2-0b0d-432d-b6b5-b7c10ef35256/what-will-egypt%25e2%2580%2599s-real-estate%253cmark%253e-sector%253c%2Fmark%253e-look-like-in-2025%3F (date of access: May 17, 2025).
  10. SandsofWealth. (2025). Egypt: Which Area? 10 hottest real estate areas in Egypt in 2025. Updated February 18, 2025. URL: https://sandsofwealth.com/blogs/news/egypt-which-area (date of access: May 17, 2025).