Cairo real estate outlook brightens on government reforms, FDI targets: JLL
Updated 11/18/2025 9:56:00 AM
Arab Finance: Outlook for Cairo’s real estate sector is widely optimistic, driven by strategic government initiatives and improved macroeconomic fundamentals, as per JLL’s Market Dynamics Q3 2025 report.
The report showed a robust growth potential of Cairo’s real estate market, with investor activity shifting, all backed by the government’s targeted structural reforms and initiatives, several reductions in interest rates, and increased foreign direct investment (FDI) targets.
Additionally, JLL highlighted that the launch of the ‘National Narrative for Economic Development’ in September 2025 bolstered this momentum, firmly positioning the private sector as a key engine for quality growth.
Aligned with Egypt Vision 2030, this action plan has outlined ambitious FDI targets for 2030, including enhancing competitiveness and attracting investment across promising sectors, which will further boost real estate growth.
Ayman Sami, Country Head of JLL Egypt, said: “Substantial policy reforms, supported by a strong foundation of advanced infrastructure and urban expansion, are sustaining investor appetite in Egypt’s resilient real estate market.”
“The sector’s recovery throughout 2025 has positioned it as a favored hedge against declining interest rates and currency volatility. This continued confidence in a gradually rebounding market highlights both the near-term opportunities and longer-term potential of a dynamically evolving market,” Sami added.
The report also noted the key role played by government initiatives in boosting overall business sentiment in the Egyptian capital.
These initiatives include an EGP 5 billion allocation for MSMEs and young entrepreneurs, as well as streamlined investment procedures designed to attract a 20-30% increase in FDI.
This optimistic outlook marks a continued recovery and expansion for Cairo's office sector, as multinational corporates drive demand for high-quality space in prime business parks, pushing prime rental rates up by 7.6% year-over-year.
Moreover, JLL expects Cairo’s residential sector to see renewed growth momentum, with 13,800 units projected for delivery in Q4 2025. This will lead developers to expand their portfolios, evidenced in a surge in land acquisitions.
As for the resale market, the report said it continued to witness a more moderate annual increase in sales prices in Q3 2025.
Going forward, declining interest rates are projected to accelerate the shift of investor capital from bank deposits to real estate, which will revitalize both primary and secondary markets, JLL pointed out.
Further anticipated rate cuts are set to enhance cashflow and result in new project launches, the company revealed.
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