The impact of the Egyptian Pound devaluation between 2015–2025 drove property demand, reshaped prices, and positioned real estate as a top investment choice.
Over the past decade, Egypt’s economy has witnessed major shifts. From 2015 to 2025, the Egyptian Pound (EGP) lost over 80% of its value against the US Dollar.
While this devaluation challenged households and businesses, it unexpectedly boosted Egypt’s real estate market, turning property ownership into one of the most stable and profitable investments in the country.
This article explores how currency devaluation reshaped Egypt’s property sector, investor behavior, and long-term market trends.
1. The Egyptian Pound: A Decade of Devaluation
In 2015, 1 USD equaled about 7.7 EGP.
By 2025, the rate reached nearly 50 EGP per USD, reflecting a more than six-fold drop in value.
The pound’s depreciation was driven by inflation, foreign currency shortages, and global pressures.
However, as the value of money weakened, investors sought to protect their wealth in tangible assets, and real estate became the prime destination.
2. Real Estate as a Safe Haven Investment
When a currency loses value, people look for assets that can store and grow wealth.
In Egypt, real estate became that safe haven.
Properties not only retained their value but also appreciated in line with inflation.
Buyers realized that investing in apartments, villas, or land was a stronger financial move than holding EGP in bank accounts.
3. The Construction Cost Effect
The fall of the pound led to soaring import prices for cement, steel, marble, and finishing materials.
Developers faced rapidly rising costs and were forced to increase property prices to maintain profitability.
Between 2015 and 2025, average construction costs rose by more than 250% in local currency terms.
While this made new properties more expensive in EGP, it also pushed resale and land values higher, benefitting long-term investors.
4. The Foreign Buyer Advantage
The devaluation created a golden window for expats and foreign investors.
In USD terms, Egyptian real estate became significantly cheaper compared to regional markets.
A villa in 2015 worth 10 million EGP (~$1.3M) might now cost the same in EGP but only $200K–$250K USD due to the exchange rate shift.
This made Egypt’s luxury real estate market especially appealing to investors from the Gulf, Europe, and North America, fueling foreign currency inflows.
5. Rental Market Transformation
The currency crisis also impacted Egypt’s rental landscape.
Expats, embassies, and multinational companies paying in USD drove a surge in high-end rental demand.
Landlords began listing properties in dollars or dollar equivalents, especially in:
- Maadi Sarayat
- Maadi Degla
- Katameya Heights
- New Cairo
As a result, rental yields increased, particularly for furnished units catering to foreign tenants
6. The Outlook for 2025 and Beyond
As Egypt’s economy stabilizes, the real estate market continues to offer opportunities.
The government’s expansion into new cities like the New Administrative Capital and New Alamein is driving infrastructure growth and creating fresh demand.
Analysts predict:
- Continued interest from foreign buyers
- Stable growth in rental yields
- Gradual recovery of domestic purchasing power
In short, the market remains a resilient and profitable choice for both local and international investors.
Conclusion
Between 2015 and 2025, the devaluation of the Egyptian Pound reshaped the nation’s economic landscape — and real estate emerged as its strongest survivor.
Property ownership became not just a lifestyle choice but a financial safeguard against inflation and currency decline.
For those looking to invest in Egypt’s future, real estate remains the most reliable and rewarding asset class.