North Coast prices rise prompts market review
Real estate prices along the North Coast have witnessed significant increases in recent years. In 2025, sales in the area amounted to approximately $10.4 billion, which is about 520 billion Egyptian pounds—representing one-third of the sales by major developers in Egypt and roughly six times higher than five years ago. However, experts emphasize that price assessments should be based on data and return rates rather than impressions. Currently, prices in gated communities range from 50,000 to 200,000 Egyptian pounds per square meter, while in competing areas such as Hurghada and Soma Bay, prices range from 110,000 to 250,000 Egyptian pounds per square meter, with some European resorts offering even higher prices and services. Experts also pointed out that the relationship between unit prices and current investment returns faces challenges. The capitalization rate, at between 7.5% and 8%, correlates with declines in real yields, leading to a market stagnation. They suggest separating beach usufruct rights from ownership as a means to stimulate the market and reduce maintenance burdens. Additionally, the market should anticipate that resorts will mature over time and transition into year-round communities, while the ongoing influence of interest rates and rental prices will continue to impact future prices.
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