“It is impossible for residential unit prices to drop, unlike cars,” said Osama Saad, CEO of the Real Estate Development Chamber, as developers grapple with rising costs and shifting market conditions.
Saad explained that recent fluctuations in the exchange rate and construction material prices prompted a series of meetings with developers to explore potential price reductions. However, it was agreed that unit prices in projects where one or two phases have already been sold will remain unchanged. Instead, developers are offering additional in-kind benefits, such as upgraded finishing packages or contributions toward club memberships, to attract buyers without altering base prices.
In recent months, the market has seen cash payment discounts exceeding 50%, an unprecedented level for Egypt’s real estate sector. Several developers have introduced these aggressive offers to boost liquidity and maintain construction momentum amid rising costs and tightening financing conditions. Traditionally, cash discounts have ranged from 25% to 30%, but recent pressures have pushed them significantly higher.
In East Cairo, particularly the New Administrative Capital, Mostakbal City, and the Fifth Settlement, cash discounts ranged between 25% and 50%. In West Cairo, projects recorded discounts of around 30%. Madinet Masr stood out by offering what marketers say is the highest announced cash discount so far: 55% for immediate full payments.
Abdallah Sallam, President and CEO of Madinet Masr, said the company’s offers reflect current purchasing power and evolving customer preferences. Madinet Masr, he explained, continuously designs flexible payment plans tailored to diverse client segments. The current discount levels, he noted, align with prevailing interest rates and offer buyers a balanced financial alternative.
Sallam emphasised that upfront-payment incentives aim to stimulate demand and provide practical solutions in the current economic environment. These offers help companies reinforce cash flow, supporting construction and operational commitments. He added that such approaches bolster the appeal of real estate as a stable investment while ensuring Madinet Masr’s long-term financial and operational resilience.
However, not all industry voices are optimistic. Mohamed Samir, CEO of Elite Consulting, said the steep cash discounts signal mounting pressures in the market. He warned that the sector faces a “real crisis” that could intensify in the first and second quarters of 2026 due to liquidity shortages, slowing sales, and rising rates of unit returns.
Samir noted that Egypt lacks a robust mortgage financing system capable of supporting demand, leaving developers dependent on cash discounts to secure liquidity. Much of this cash, he added, is directed toward covering immediate financial obligations and completing ongoing projects. Access to bank financing remains limited, available only to a small number of large developers and often requiring lengthy processing times, which weakens financial sustainability across the sector.
He highlighted that 2022 and 2023 witnessed a surge in new project launches and strong sales, with many units scheduled for delivery in 2026. But current liquidity constraints and slowing sales could affect delivery timelines and challenge some developers’ ability to meet obligations to clients.
Abd Elrahman Abozeid, Senior Sales Team Leader at Taskeen, a subsidiary of Nawy specialising in proptech solutions, said the large cash discounts have generated “noticeable movement” in the real estate market in recent months. He noted that the offers have boosted demand for ready units and projects nearing completion. While upfront-payment discounts in such projects typically remain below 50%, they tend to increase as construction advances.
Abozeid added that the primary objective of these offers is to stimulate sales and secure the cash flow required to complete projects. Discount levels, he said, vary based on the size of the upfront payment and the conditions of each project.
