TMG Holding’s CEO, Hisham Talaat Moustafa, recently shared insights on the state of Egypt’s real estate market, emphasizing that the sector is functioning at standard levels despite recent economic fluctuations. According to Moustafa, the unusual activity noted in 2023 and 2024 was mainly driven by inflation, currency devaluation, and rising construction costs, rather than an overarching crisis in the market.
Strong Collection Rates Maintain Developer Stability
During an interview with Amr Adib on MBC Masr’s Al Hekaya, Moustafa reassured investors and stakeholders about the robust financial health of major developers in Egypt. He reported that TMG Holding boasts an impressive customer collection rate of 99.6%, indicating only a minor default rate of about four out of every 1,000 customers. This high collection rate is echoed by other leading developers, suggesting that claims of extensive financial distress among major players are unfounded.
Moustafa did recognize that smaller developers, particularly those who entered the market in the last five to six years, are encountering challenges. However, he believes that the sales attributed to these entities represent merely 1% to 2% of the overall market. He stated that the government is actively working to assist these struggling firms, arguing that the issues faced should not be interpreted as indicative of a broader crisis in the real estate sector.
Market Dynamics Shift Amid Inflationary Pressures
The exceptional activity in the real estate market during 2023 and 2024 can be traced back to a surge in inflation that encouraged many investors to seek real estate as a protective measure against rising prices. The depreciation of the Egyptian pound and escalating construction costs led to a wave of investment, with many buyers looking for property as a way to capitalize on anticipated price increases rather than for long-term residence.
Moustafa explained that this scenario changed as monetary policies tightened in 2025 and 2026. The slowdown in the secondary real estate market can be attributed to these measures aimed at controlling inflation. As liquidity diminished, purchasing power was affected, which slowed down the resale of properties. The influx of investors during the inflation spike contributed to an oversupply in the market, which led to longer timelines for finding buyers.
Forward-Looking Optimism Amidst Market Readjustment
Despite the current conditions, Moustafa stressed that this phase should be viewed as a necessary market adjustment rather than a structural downturn. He indicated that property sales and transfers are still occurring at a normal pace, reflecting a transition toward more sustainable market levels following two years of exceptional activity driven by inflation.
Key indicators of the sector’s vitality, such as financial performance and high collection rates among major developers, set them apart from the issues affecting a smaller number of newer entrants. Overall, Moustafa’s perspective presents a cautiously optimistic view of the Egyptian real estate sector, contending that the market’s fundamentals remain strong amid temporary uncertainties.