Impact of the Dollar on Egypt’s Real Estate Sector
The recent surge in the US dollar against the Egyptian pound has had a direct impact on numerous economic sectors—real estate being one of the most affected. The sector is now undergoing significant shifts in both supply and demand, as well as in investor behavior. Despite rising construction costs caused by the increased prices of materials such as steel and cement, Egypt’s real estate market continues to be a safe haven for investors looking to preserve the value of their money. Developers have adjusted unit prices to reflect the new economic reality, allowing them to maintain financial stability and shield investments from currency volatility.
Expert Advice for Real Estate Investors During Dollar Fluctuations
Real estate investment is currently viewed as an optimal choice for those aiming to protect the value of their capital. According to industry experts, the increase in property prices—driven by the dollar exchange rate—helps investors safeguard their savings and even grow their capital over time for the following reasons:
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- Stable Financial Returns: Investors can achieve financial security either through long-term resale profits or via a steady rental income.
- Appreciating Asset Value: Real estate is a tangible asset that typically increases in value over time, providing long-term capital gains.
- Protection Against Inflation: Real estate offers a reliable hedge against inflation and currency devaluation, making it an ideal store of wealth during economic downturns.
Will Real Estate Prices in Egypt Drop Soon?
Although the Egyptian real estate market has seen a period of relative calm—especially toward the end of 2024 and the start of 2025—thanks to some stabilization in the dollar exchange rate, a decline in property prices is unlikely.
It’s important to note that the market shows no signs of entering a speculative bubble followed by a sharp drop in prices. This stability is mainly due to the sustained demand for residential and investment properties. Population growth, cultural preferences for property ownership, and the need to secure financial assets all contribute to ongoing market strength
Want to dive deeper? Here’s the complete guide to The Future of Real Estate in Egypt: Growth Prospects and Investment Opportunities