Mohamed Idris: 7.25% Interest Rate Cuts Set to Strongly Boost Egypt’s Real Estate Sector in 2026
Engineer Mohamed Idris, Chairman of the Board of Directors of Mabani Idris Company, said that 2025 marked a positive turning point in Egypt’s monetary policy, with cumulative interest rate cuts of around 7.25%, a move expected to provide strong momentum for the real estate sector in 2026.
Idris stated that the Central Bank’s recent decision to cut interest rates by 1% carries significance beyond its direct financial impact, sending strong reassurance signals to both local and foreign investors. He noted that the decision reflects a clear policy direction toward supporting economic growth and stimulating investment, particularly amid positive expectations of continued monetary easing throughout 2026.
He explained that the market is currently witnessing a state of anticipation for further interest rate reductions, given their critical role in boosting investment flows and encouraging companies to expand and launch new projects. Lower borrowing costs, he added, enable developers to access bank financing on more favorable terms, accelerating expansion plans and contributing to higher employment levels.
Idris pointed out that the real estate sector is among the biggest beneficiaries of interest rate cuts. With declining returns on savings, investors are increasingly shifting toward alternative investment channels characterized by stability and safety, with real estate at the forefront due to its ability to preserve value against inflation while generating stable and growing returns over the medium and long term.
He also highlighted the direct impact of lower interest rates on the financial structure of real estate projects, noting that reduced financing costs help ease some of the burdens faced by developers, including various fees and the continued rise in the prices of construction materials, energy, and services. Idris explained that prior to the rate cuts, financing costs had reached nearly 30% of total project costs, placing significant pressure on developers and influencing unit pricing and project launch schedules.
According to Idris, continued interest rate reductions will enable developers to restructure their cost bases and improve profit margins, which will have a positive ripple effect across the market. This includes increased supply, greater diversification of real estate products, and the introduction of more flexible payment plans tailored to different customer segments.
He predicted a strong start for Egypt’s real estate sector in 2026, supported by ongoing interest rate cuts and the implementation of additional market-supportive measures.
Earlier this month, the Central Bank of Egypt decided to cut interest rates by 1% at its eighth and final Monetary Policy Committee meeting of 2025, bringing the deposit rate to 20% and the lending rate to 21%. The decision underscores the government’s continued commitment to supporting economic activity and stimulating investment.
With this latest move, total interest rate cuts since the beginning of 2025 have reached 7.25%, implemented across five meetings: 2.25% in April, 1% in May, 2% in August, 1% in October, and 1% at the most recent meeting.