With expectations that the Central Bank of Egypt will reduce interest rates by 100 basis points at its upcoming meeting on August 28, 2025, Landmark Developments (LMD) forecasts a wave of growth and renewed momentum in the country’s real estate sector. The anticipated cut is set to ease financing costs, strengthen purchasing power, and create a more dynamic market environment.
LMD emphasized that a strategic rate reduction of this scale would significantly boost Egypt’s overall appeal to both local and international investors, and provide new momentum for economic development, all while reinforcing real estate’s position as a key engine of economic growth.
Commenting on the outlook, Mohamed Abdel Monam, Chief Financial Officer (CFO) and Board Member of Landmark Developments (LMD), explained: “Lower interest rates will give developers greater flexibility to launch new projects, instill stronger investor confidence, and encourage more buyers to step into the residential and commercial markets.”
Abdel Monam went on to add: “At LMD, we expect this move to create genuine opportunities to invigorate the property market and boost demand across our projects. This aligns with our long-term vision of developing integrated communities that complement Egypt’s aspirations and support the national economy, which has already achieved remarkable growth, driven by government efforts in trade, industry, and agriculture. These efforts have strengthened exports, balanced the payments position, stabilized the exchange rate, and lowered the U.S. dollar, leading many Egyptian and international investors to adopt a positive view of Egypt’s economy.”
This outlook comes as Egypt’s annual urban inflation rate slowed to 13.9% in July, down from 14.9% in June, alongside signs of exchange rate stability and improved foreign currency inflows. The Central Bank had already cut rates in April (2.25%) and May (1%) before holding them steady in July. These measures have helped ease financing burdens for investors.
Beyond that, market experts believe these developments will support the real estate sector by reducing borrowing costs and encouraging investment. They also point to the strong support provided by Egypt’s banking sector and major financing institutions, which continue to play a critical role in advancing one of the country’s most vital industries. Analysts expect the market to further recover toward the end of 2025 as the currency stabilizes and demand for housing rises.
Landmark Developments (LMD) reaffirmed its commitment to supporting the state’s efforts to enhance the investment climate and to develop integrated projects that reflect the strength of Egypt’s real estate market and its capacity for sustainable growth.
