Savills Egypt today launched its “Cairo Property Report 2025”, revealing a real estate market in transformation and an outlook that remains broadly positive across all major asset classes. The report highlights shifting consumer demand, new financing mechanisms, and structural adjustments reshaping the trajectory of Egypt’s property sector.
Retail: A sector in expansion
Retail remains a key driver, with more than 1.1 million sqm of new supply forecasted in the coming years, according to Savills’ database. At the same time, retail sales are projected to grow from USD 149.7 billion in 2025 to USD 201.4 billion by 2030, as per Oxford Economics data, reflecting both the resilience of consumer demand and the expansion of international and local brands. At the same time, tenant bargaining power is on the rise as abundant supply fuels competition. Meanwhile, Downtown Cairo is regaining momentum as a retail hotspot through adaptive reuse projects.
Hospitality: Capacity set to double
Hospitality continues to surge, supported by government plans to nearly double national hotel capacity to 470,000 keys by 2028. Global operators are expanding their footprint, while historic properties in central Cairo are being reimagined into modern lifestyle hotels. Occupancy rates reached 75% in early 2025, underscoring renewed investor and traveller confidence in Egypt as a premier tourist destination.
Residential: Reliable investment tool
The residential sector remains a cornerstone of Egypt’s property market, with prices stable in US dollar terms despite currency fluctuations. Developers are sustaining consumer confidence in the viability of the sector despite currency fluctuations by offering modest discounts, extended payment terms, and fully finished, ready-to-deliver units. Affordability challenges persist, however, new financing tools such as real estate investment funds and fractional ownership are widening access. Foreign demand is also growing, supported by ownership law reforms and strong appeal as a secondary home destination, underscoring the economic importance of Cairo’s real estate market.
Branded residences: An emerging growth engine
The report also highlights branded residences – private homes affiliated with luxury hotel or lifestyle brands – as a rapidly emerging niche. Cairo’s supply is expected to expand sevenfold by 2031, fuelled by the market being at a nascent stage, strong investor appetite and new partnerships with both luxury and upscale hospitality operators and luxury design brands. This growth signals a shift in consumer appetite toward premium, fully serviced living concepts that combine lifestyle and investment appeal.
Offices: Supply-demand mismatch
In the office market, a structural imbalance persists. Many developers are focused on selling small units to individual investors, which does not meet the needs of multinational companies that require large, high-quality Grade A spaces. This gap is creating opportunities for institutional investors and co-working providers, who can deliver flexible, fully fitted offices that are ready for immediate use and better suited to today’s corporate and freelance workforce.
Education and healthcare: Long-term opportunities
Education and healthcare remain vital yet capital-intensive asset classes. Demand for private schools and specialized healthcare facilities continues to outpace delivery, creating long-term opportunities for developers and investors. However, execution is still constrained by financing challenges, high upfront costs, and the need for experienced operators.
Strategic outlook
Commenting on the findings, Catesby Langer-Paget, Head of Savills Egypt, said: “As Egypt’s economic conditions continue to stabilize, the real estate market is showing steady signs of recovery. At Savills, we have seen strong interest from investors and developers across all asset classes, with particular focus on mixed-use developments and hospitality projects. There is also growing awareness in the market on the value of professional consultancy and property management to navigate this evolving landscape and mitigate risks. Developments that integrate structured management and consultative practices from the outset are generally achieving higher occupancy rates and more consistent performance, reflecting a broader shift toward long-term value and operational quality.”
Rania Nazmi, Head of Strategic Consultancy at Savills Egypt, added: “Compared to the past few years, the real estate market has now returned to a more stable, demand-driven phase, supported by solid demographic trends. With end-users back at the center of buying decisions, developers who focus on functional, user-centric designs and strategies are standing out across all asset classes. Their ability to align with real needs has become key differentiator in today’s more rational and resilient market environment.”
The Cairo Property Report 2025 underscores both the opportunities and challenges in Egypt’s real estate industry. Yet the overall trajectory remains positive, with Savills forecasting continued growth in retail performance, hospitality occupancy, and the pipeline of branded residences and mixed-use developments through the end of the decade.
Savills Egypt is part of Savills plc, a leading global real estate advisory with a presence in over 70 countries and more than 42,000 professionals worldwide. Since establishing its Cairo office in 2019, Savills Egypt has grown to provide a full suite of services across advisory, valuation, property management, leasing, and investment consultancy, serving developers, investors, corporates, and government entities across the country.
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