Egypt’s real estate sector is one of the country’s most vital industries, seeing rapid growth. In April 2025, the nationwide real estate price index jumped 30.4% year-on-year. When adjusted for inflation, prices still rose a notable 14.5%, reflecting sustained demand despite broader economic pressures.

Amid this growth, smart city infrastructure is gaining traction. Revenue from Egypt’s Smart Cities market is forecast to reach $220.59 million in 2025, with projections indicating a compound annual growth rate (CAGR) of 7.07%. By 2029, the market is expected to expand to nearly $290 million.

Major national initiatives are driving this shift, including the development of entirely new smart cities, such as the New Administrative Capital (NAC), as well as efforts to upgrade existing urban areas with digital infrastructure. These projects aim to enhance sustainability, stimulate economic development, and improve urban living standards.

In the residential space, the Smart Home market is also poised for growth. Revenues are projected to reach $423.2 million in 2025, with an annual growth rate of 10.93% pushing the market to an estimated $640.9 million by 2029. Household penetration is expected to rise from 69.5% in 2025 to 84.8% by 2029.

Despite this progress, Egypt still lags behind more mature markets. 

SMART RESIDENTIAL COMMUNITIES

Ayman Sami, Country Head, Egypt, JLL MENA, says smart residential communities still remain a challenging topic in Egypt because they’re still quite rare. “Smart technology is more commonly integrated into mixed-use commercial developments rather than residential ones.”

“The bigger focus in residential communities tends to be lifestyle, especially when it comes to service charges, which are a major point of tension. Residents often clash with management over rising costs,” Sami explains. 

Sami notes that in Egypt, the most commonly available form of smart infrastructure typically involves control systems designed not only to enhance residents’ convenience but also to enforce regulations, particularly around service charge collection.  “For instance, while developers can’t prevent residents from entering their homes, they can restrict access to convenience features, such as smart car badges that allow automatic gate entry.”

Sami also points out that only a limited number of areas in Egypt currently emphasize smart infrastructure. “New Cairo and 6th of October are well-known new areas, but now we’re also seeing development in the newer fourth-generation cities,” he states. “Take the New Administrative Capital. The city is being built with advanced infrastructure, including a comprehensive underground network that connects the entire area.”

“This isn’t just about smart communities—it’s about developing an entire city with the right conduits and systems in place, whether underground or wireless. This approach is a core part of the vision for Egypt’s fourth-generation cities,” he adds.

This is largely due to the rapid development and growing demand in these areas. Locations such as the New Administrative Capital, El Sheikh Zayed, and New Cairo’s Fifth Settlement rank among Egypt’s most sought-after—and expensive—property areas, valued for their advanced infrastructure, upscale amenities, and high-end lifestyle appeal.

Similarly, Mohamed Ali, Managing Director at Reventures and a real estate expert, says the rise of smart gated communities is becoming more pronounced in urban centres like New Cairo and the New Administrative Capital. “This surge is fueled by strong  market demand, tech advancements, and supportive government initiatives,” he explains.

Ali adds that developers are increasingly incorporating smart home technologies such as energy-efficient systems, enhanced security, and integrated community services to align with growing market needs. “The  government’s ambitious plan to build 38 fourth-generation smart cities further underscores this commitment.”

He outlines the key features increasingly being integrated into smart gated communities, starting with smart home automation—centralized control of lighting, climate, and appliances through smartphones or voice commands. 

He also highlights the adoption of advanced security systems, including smart locks and facial recognition entry, as well as amenities such as smart parking, EV charging stations, and, in some cases, internal shuttle services. 

Additionally, he points to the rise of integrated community apps that allow residents to book amenities, pay bills, and stay updated on community news through a single digital platform.

CHALLENGES OF SMART INTEGRATION

Sami lists affordability as the primary concern when thinking about smart integration.

With a population of over 107 million in 2024, the country faces a shortfall of around 3 million housing units, requiring an estimated 175,000 to 200,000 new units annually. Despite having approximately 5.6 million vacant homes, most remain unaffordable for low- and middle-income households.

Over the past decade, the price of the most affordable social housing has risen by 15–20% annually, while average incomes have grown by just 1% per year, further widening the affordability gap.

“Developers’ main competitive edge now lies in pricing and flexible payment plans, which means there’s a strong focus on making units more affordable,” Sami notes, explaining that this doesn’t necessarily align with integrating smart features or additional amenities. 

“Ideally, you could have both affordability and smart technology, but that’s not the reality at the moment.”

He adds that once units are sold, developers have limited responsibility for ongoing operational costs, as service charges for common areas are typically borne by homeowners. As a result, developers tend to minimize upfront investment. 

“While smart systems and technologies do require higher initial investment, they can reduce long-term operating costs and improve efficiency.”  

Still, Sami notes that this approach is not widely adopted unless the development is a large-scale, mixed-use project. In such cases—where residential units are integrated with offices, hotels, and retail—it becomes more practical to incorporate smart infrastructure from the outset.

Similarly, Ali cites cost as a significant barrier to smart infrastructure adoption. He also highlights additional challenges, particularly around outdated infrastructure. 

“Many older areas lack the necessary electrical, internet, and water systems to support smart technologies. Stable, high-speed internet is still not widely available, and frequent power outages can disrupt IoT systems,” he explains.

He further points to regulatory and policy shortcomings, noting that the absence of unified building codes for smart technologies, along with underdeveloped data privacy and cybersecurity laws, hampers progress. Ali adds that local expertise in maintaining smart systems remains limited, and inadequate post-sale support often results in system failures.

SUSTAINABILITY AND SMART DESIGN

Sami says one of the key benefits of technology in real estate is its ability to boost energy efficiency and sustainability. Smart systems, he explains, can significantly cut energy use by using motion and heat sensors, along with automated lighting controls, to optimize consumption and reduce waste. 

“Ultimately, it benefits the end user through cost savings. Features like water-saving nozzles, greywater recycling, and automated light sensors are good examples. Smart systems that manage air conditioning by monitoring heat and movement can also reduce energy use,” he says.

Much of this depends on sensor technology, which is used to detect water leaks, energy waste, and other inefficiencies, and needs to be built into a development from the start. 

For example, integrating sensors into piping systems allows for early detection and quick response to leaks. This not only saves resources but also enhances facilities management by enabling real-time issue detection and faster maintenance.

FUTURE POTENTIAL

“The potential for applying smart city tech to broader urban areas in Egypt is significant,” says Ali. Driven by Vision 2030, rapid urbanization, a tech-savvy population, and growing investment in digital infrastructure, Egypt is seeing momentum in smart city development. Private developers are also experimenting with “smart islands” as potential prototypes.

However, Ali notes that several key challenges must be addressed first, including the prevalence of informal settlements, social inequality, and fragmented governance, with multiple authorities managing urban areas, making coordination difficult. He also points to the absence of robust data protection laws as a critical gap that needs to be filled.

To help close this gap, Ali suggests leveraging gated communities as testbeds for innovation, encouraging public-private collaboration, digitizing local government services, investing in urban data infrastructure, and placing greater emphasis on inclusive design.

“In essence, while smart gated communities offer a valuable starting point, truly smart  Egyptian cities will require a shift from luxury-focused innovation to inclusive,  infrastructure-first development across all urban areas,” he states.

Sami explains that Egypt is already progressing toward the implementation of smart systems, particularly through the development of new cities. At the national level, effective monitoring systems could yield significant cost savings. 

On the consumer side, adoption is growing steadily, with more people purchasing smart switches, infrared sensors, Bluetooth-enabled devices, and voice-command systems—now widely available in the market.

Looking ahead, the focus will shift toward enhancing efficiency, not only in energy and utility usage but also in saving time for users. From residential gated communities to commercial buildings, smart systems are expected to enhance resident experiences and streamline building management.

“From my point of view, implementing smart systems—with the right monitoring tools, sensors, and technologies—is essential for managing real estate efficiently,” Sami says, adding that energy efficiency is becoming increasingly vital as the government phases out subsidies and the cost of living rises.