Tarek Shoukry, Chairperson of the Real Estate Development Chamber at the Federation of Egyptian Industries and Deputy Head of the Housing Committee in Parliament, confirmed that Egypt’s real estate exports reached $1.5bn in 2025—a 200% increase compared to $500m in 2024. He attributed this surge to growing interest from foreign buyers and broader market stability, while firmly rejecting claims of a real estate bubble.
Shoukry emphasized that media attention around properties with exceptionally high price tags—such as EGP 500m waterfront villas—misrepresents the broader market. These cases, he explained, are limited to 50–100 prime units in a few high-end North Coast developments and do not reflect the reality for the vast majority of Egypt’s 110 million citizens.
Responding to ongoing criticism regarding developer profits, Shoukry clarified that publicly listed real estate companies, which follow strict financial disclosure requirements and are subject to taxation, typically earn net profit margins of just 10–15% over project lifecycles spanning four to six years. Contrary to public perception, these are far from excessive.
He broke down the cost structure of a typical real estate project: land acquisition makes up 30–35% of total cost, while construction, infrastructure, and landscaping account for 35–45%. Marketing and sales contribute around 10%, and administrative and engineering costs range from 3–5%. In total, this adds up to approximately 90% of the unit’s value. Any profit beyond this is minimal—especially when financing is involved. “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 said.
Shoukry stressed that Egypt’s real estate sector is healthy, balanced, and not driven by inflated profit margins or speculative pricing. The record-breaking sales of 2024 were an outlier, spurred by the currency flotation and sharp rise in the dollar, which led many buyers to move savings into real estate. In 2025, sales returned to more stable levels, slightly above the averages seen between 2020 and 2023.
He underscored that real estate is fundamentally a long-term investment, not a tool for short-term speculation. Most investors and homebuyers in Egypt hold property over three to five years or longer.
No Real Estate Bubble
Addressing recurring speculation about a housing bubble, Shoukry dismissed the concern as unfounded, stating that Egypt has heard similar warnings for over 25 years, none of which have materialized. He pointed out that property bubbles typically occur when banks provide excessive mortgage loans that exceed the value of the property—as seen in the 2008 U.S. crisis—whereas mortgage financing in Egypt accounts for only 3–4% of the market and is mostly directed toward social housing.
Shoukry also pointed to the strong performance in property exports, which tripled in value in 2025. He attributed this to Egypt’s appeal as a real estate destination and emphasized the importance of maintaining market transparency and investor confidence.
Following a recent meeting with Prime Minister Mostafa Madbouly and the government’s real estate advisory committee, three key messages emerged: there is no real estate bubble, the sector remains robust, and closer cooperation between the state and private developers is essential to address challenges.
He noted that Egypt’s demographic trends—particularly its population of 110 million and approximately 900,000 marriages annually—create consistent real demand for housing. However, affordability remains a key issue, as rising monthly installment payments put pressure on buyers.
Mortgage Reform Proposal
Shoukry proposed the introduction of a subsidized mortgage program to ease housing access, particularly for the middle class. Under this system, each family would be eligible for one subsidized loan, with interest rates determined by unit size: 8% for homes up to 100 square meters, 10% for units between 100 and 150 square meters, and 12% for homes above 150 square meters.
He argued that this policy would curb speculation and prioritize genuine homebuyers. “State support through reduced interest rates should be seen as an investment, not a loss,” he said, adding that greater home ownership boosts tax revenues, job creation, insurance contributions, and demand across over 100 related industries.
This initiative, he said, is designed to support Egypt’s middle class—“the backbone of the nation”—and would help address their growing housing burden. The proposal has already been submitted along with a full feasibility study, and Prime Minister Madbouly has pledged to discuss it with the Central Bank Governor in the near future.
A Key Economic Driver
Shoukry concluded by reiterating that the strength of the real estate sector is a reflection of the overall economy. “When the property market is stable and growing, it sends a positive signal about the country’s economic health,” he said. Conversely, market slowdowns—often driven by unfounded rumors—can cause unnecessary disruption, as seen in 2001, 2008, and 2011.
He stressed that real estate remains a cornerstone of the Egyptian economy, employing roughly 25% of the workforce, contributing more than 20% of GDP, and acting as a major engine for local industry and development.
