SNG: Egyptian developers offer unprecedented cash discounts amid mounting market pressures

About this update from Madinet Masr For Housing & Development

First published: 08-Dec-2025 09:42:08Staff Writer“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 discoun...

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