How Much Is the Real Estate Investment Return in Egypt? Figures and Forecasts for 2025

Have you ever wondered how much profit you could make from buying an apartment or a commercial unit in Egypt this year?
Amid fluctuating economic conditions and continuously rising prices, real estate investment has become one of the most attractive sectors for capital, thanks to its relative stability compared to gold or the stock market.

In this article, we’ll provide you with a comprehensive, data-driven analysis of the real estate investment return in Egypt 2025, revealing which property types generate the highest profits and where the best opportunities lie — in new cities such as the New Administrative Capital, New Cairo, and New Alamein.

What Is Real Estate Investment Return and How Is It Calculated?

The real estate investment return (ROI – Return on Investment) is the main indicator used to evaluate the profitability of any property investment, whether residential, commercial, or administrative.
Simply put, it’s the percentage that represents how much profit an investor earns compared to the total amount paid to purchase the property over a specific period of time.

ROI is one of the most important tools used by investors when making purchasing decisions because it provides a realistic view of potential profits and helps determine whether a deal is worth the risk.

The real estate ROI is calculated using the following formula:

ROI = (Net Annual Income ÷ Total Property Cost) × 100

For example:
Let’s assume you purchased a residential apartment in New Cairo for EGP 3,000,000 and rent it out for EGP 15,000 per month.

Here’s how the math works:

• Annual rental income: 15,000 × 12 = EGP 180,000 per year
• ROI: 180,000 ÷ 3,000,000 × 100 = 6% annually

This means you are earning a 6% annual cash return on your investment, not counting any increase in the property’s value.

However, the true return isn’t limited to rental income. There’s another form of profit known as capital gain, which refers to the appreciation of the property’s value over time.
For instance, if the same apartment’s price rises to EGP 3,600,000 after two years, you’ve achieved an additional 20% capital gain on top of your yearly rental income.

Therefore, real estate investment combines two types of profit:

1. Fixed rental income — representing steady cash flow from rent.
2. Capital appreciation — increasing value as property prices rise over time.

This dual-profit model is what makes real estate one of the safest and most stable investment options in Egypt, especially during times of inflation or currency devaluation, as it allows investors to both protect their capital and generate consistent income.

Average Real Estate Investment Return in Egypt 2025

According to current real estate indicators, the average return on real estate investment in Egypt in 2025 ranges between 5% and 12% annually, depending on the type and location of the property.
Below is an overview of the most important investment areas:

New Cairo

• ROI: 6% to 8% annually
• High demand due to proximity to international universities and major service areas.
• The greatest demand is for small and medium-sized apartments.

New Administrative Capital

• ROI: 7% to 10% annually, especially for commercial and administrative units.
• The presence of ministries and government headquarters has significantly increased the demand for office spaces.

North Coast & New Alamein

• ROI: 10% to 12% seasonally, mainly during the summer months.
• Tourism-based real estate investment here is among the most profitable types, although it depends on the season.

6th of October & Hadayek October

• ROI: 5% to 7% annually.
• Demand is increasing thanks to a wide variety of housing projects and integrated service areas.

Alexandria and Coastal Cities

• ROI: 5% to 7% annually.
• Continuous demand, especially for sea-view properties and units located in active commercial zones.

Factors That Determine Real Estate Investment Return

The ROI doesn’t depend only on the property type, but also on several key factors that should be carefully evaluated before purchasing:

Location:

Location is the number-one factor in determining ROI.
Properties near schools, transportation hubs, and service areas achieve higher returns.

Property Type:

Residential properties offer stable long-term returns.

Commercial and administrative properties yield faster profits but require higher initial capital.

Payment Plan:

Cash payments usually secure a lower purchase price, leading to higher ROI.

Long installment plans reduce the actual profit margin.

Market Demand:

The higher the demand for a project or area, the higher the expected return.
For example, areas surrounding the New Administrative Capital are witnessing strong demand in 2025.

Developer Reputation:

Projects built by well-known, reputable developers are more trusted and easier to resell or rent, ensuring long-term profitability.

Egypt Real Estate Market Forecast 2025

According to real estate analysts and market experts, Egypt’s property sector in 2025 is expected to continue its strong growth, supported by several economic and investment drivers.

With the continuous rise in construction material prices such as steel, cement, and bricks, property prices are anticipated to increase by 15% to 25% compared to the previous year — making 2025 a pivotal year for price re-evaluation across Egyptian cities.

The market is also witnessing a shift in consumer preferences, as demand for small and medium apartments grows due to affordability and suitability for young professionals and individual investors. This trend has prompted developers to design new projects tailored to modern living needs.

In addition, major national projects like the New Administrative Capital, New Alamein, and New Mansoura, along with other smart cities, play a crucial role in stimulating the real estate market. These developments provide strong infrastructure, comprehensive services, and new job opportunities, which expand the investment base in Egypt.

Another vital factor is the transformation of real estate into a safe haven against inflation — especially amid recent fluctuations in gold and currency prices. Real estate has become one of the most reliable ways to preserve capital and generate steady returns, whether in established cities or emerging urban communities.

Based on these factors, 2025 is expected to be one of the strongest years for real estate investors in Egypt, marked by rising prices and stable demand, particularly in newly developed areas with advanced infrastructure that attract buyers seeking quality and guaranteed returns.