Ahmed Kamel – Egypt Daily News
Egyptian Prime Minister Mostafa Madbouly has firmly rejected speculation of a looming real estate bubble in Egypt, citing strong market fundamentals, growing foreign interest, and significant tax revenues from flagship national projects as signs of a stable and thriving sector.
Speaking at a press conference following a series of extensive meetings with the Real Estate Development Advisory Committee and a number of major property developers, Madbouly emphasized that comprehensive studies and market discussions have shown no evidence of what is often termed a “real estate bubble” forming in the country.
“The Egyptian real estate sector is resilient,” he said. “It has the capacity for balanced and sustainable growth in the coming period.”
A key indicator of that resilience, according to Madbouly, is the increasing demand from Egyptians living abroad to purchase property in Egypt. He noted that this trend reflects rising confidence in the local market and positions Egypt as a viable destination for real estate investment.
The prime minister underscored the state’s commitment to positioning real estate exports as a strategic priority. “Property exports are now a top priority for the Egyptian government,” he stated, “not only because of their role in stimulating the economy, but also due to the vital foreign currency inflows they generate.”
Madbouly also used the opportunity to address longstanding criticism directed at the New Administrative Capital project, which some have labeled as unprofitable or lacking financial viability. He pushed back strongly against such claims, revealing that the New Administrative Capital Company has become profitable to the extent that it paid 8 billion Egyptian pounds in taxes.
“The project is not a loss,” he said. “On the contrary, it has generated significant returns for the state.”
The Prime Minister also responded to concerns raised by private sector developers over the presence of state-affiliated companies in the market, which they claim have enjoyed unfair advantages, including tax exemptions. Madbouly acknowledged the issue and stressed that the government has taken corrective action.
“We have abolished the tax exemptions and special privileges previously granted to some of these entities,” he said, adding that the state has already collected 67.5 billion pounds in taxes from these companies. “This confirms that the policy is being implemented and enforced.”
Madbouly’s remarks come as the government seeks to reassure both domestic and international investors about the health of Egypt’s real estate sector amid broader economic challenges. By highlighting profitability, transparency reforms, and export-oriented policies, officials hope to maintain momentum in one of the country’s most vital industries.
