Arab Finance: Savills Egypt sees the Egyptian real estate market as stable and largely operating as usual despite the ongoing regional tensions, with developers maintaining their project pipelines and demand levels holding steady, the company said.

With the current pressures persisting, the economic impact on Egypt is highly affected by external factors rather than direct exposure, as energy costs now represent the main pressure point, pushing up costs across the market, Savills noted.

Commenting on cost pressures, Catesby Langer-Paget, Head of Savills Egypt, said: “From a real estate perspective, the sector is facing near-term cost pressures, primarily linked to exchange rate movements, energy inputs, and supply chain disruptions. At this stage, we see no indication of a broad repricing of real estate assets.”

“Developers are maintaining pricing discipline while continuing to prioritize sales activity and project delivery. Many had already factored in elevated exchange rates during the volatility of 2024, allowing them to absorb part of the current cost increases,” he added.

In terms of projects, Savills highlighted that pipelines remain active, with continued launches across segments, showing that developers are still moving ahead with plans rather than slowing down.

However, it noted that demand holds, as real estate remains a “safe haven”. Real estate is still viewed as a hedge against inflation, with buyers turning to property to protect value.

Reflected in buyer activity, enquiry levels are still strong, Savills said. Partially driven by the relative stabilization of the Egyptian pound prior to the conflict, buyers continue allocating capital into real assets.

Savills observed no signs of panic or sudden changes in operation or pricing strategy as developers have maintained a steady and measured approach.

According to Savills, the focus is on sustaining sales, managing costs, and keeping projects on track, which reflects a more mature market, where developers are better equipped to manage volatility.

As for regional confidence, Savills pointed out that regional investment activity remains stable, with GCC developers and investors in Egypt continuing to advance projects, including large-scale developments along the North Coast.

Outlook: Duration remains the key variable Looking ahead, Savills emphasizes that

With the trajectory being dependent on the duration of the current conflict and its impact on currency stability and energy costs, the overall market is expected to remain resilient.