Dollar Exceeds 55 EGP: Will Real Estate Prices Rise in Egypt?

The dollar exchange rate surpassing the 55 EGP threshold has brought real estate prices in Egypt back into the spotlight, amid concerns over exchange rate movements impacting construction, finishing costs, and prices of new units. Saeed Hassanein, an urban planning consultant, told Vetogate that exchange rate fluctuations affect the prices of imported products, building and finishing materials, and land development costs, which in turn reflects on real estate prices.

Hassanein explained that the dollar's movement over the recent short period, which he estimated at around 10%, increases developer concerns regarding the stability of execution costs and pushes them to recalculate unit prices based on expected costs of building materials and fittings. Market prices published on October 20, 2026, showed Ezz Steel reaching around 40,000 EGP per ton, while investment-grade steel recorded nearly 38.2 thousand EGP per ton.

Hassanein pointed out that the experiences of 2016 and 2022 witnessed noticeable increases in real estate prices following exchange rate shifts, noting that real estate price hikes in some cases exceeded the appreciation percentage of foreign currencies against the pound. He added that the impact is not solely tied to the actual cost of imported raw materials, but extends to companies' expectations regarding continued price increases, which may prompt some to add hedging margins when pricing new units, while other companies resort to discounts and extended payment plans to maintain sales.

Hassanein emphasized that announced discounts do not necessarily mean the price has dropped to its actual level, as one must consider the final price, contractual terms, installment period, and associated financing burdens. He said that potential impacts could extend to middle-income, upper-middle-income, and luxury residential units, as well as commercial and administrative facilities and industrial land, with the degree of impact varying according to the nature and costs of each sector.

What Do These Terms Mean?

Exchange Rate: The rate at which one currency is converted into another, determining here how many Egyptian pounds are paid per US dollar.

Hedging Margins: A small increase added by the developer to the unit price to protect against potential future cost increases.

Upper-Middle Housing: Residential units with spaces and finishings above average, targeting income groups higher than low- and middle-income segments.