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Cairo's rental market has experienced remarkable growth, with rents increasing by up to 90% in prime areas over the past year. As of September 2025, rental yields in Cairo average 6.77%, making it one of the most attractive real estate investment destinations in the MENA region for both local and international investors.
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Cairo's rental market offers diverse options from EGP15,000 monthly for emerging neighborhoods to EGP150,000+ for luxury villas in premium compounds.
The city delivers strong rental yields of 6.77% with modern apartments in New Cairo, Zamalek, and Sheikh Zayed showing the highest demand and lowest vacancy rates.
| Property Type | Average Monthly Rent (EGP) | Prime Locations |
|---|---|---|
| 1-Bedroom Apartment | 25,000 - 55,000 | Zamalek, New Cairo, Maadi |
| 2-Bedroom Apartment | 25,000 - 65,000 | Fifth Settlement, Sheikh Zayed |
| Studio | 45,000 - 75,000 | District 5, Premium Compounds |
| 3-Bedroom Villa | 143,000 | New Cairo, Sheikh Zayed |
| 5-Bedroom Villa | 150,000+ | Fifth Settlement, Cairo Festival City |
| Budget Options | 12,000 - 18,000 | Obour, El Shorouk, Badr |
| Luxury Apartments | 60,000 - 120,000 | Zamalek, Uptown Cairo |
What are the current average rental prices in Cairo for different property types?
Cairo's rental market offers distinct pricing tiers across apartments, villas, and studios as of September 2025.
For apartments, one-bedroom units in decent areas rent for EGP25,000–55,000 monthly, while two-bedroom apartments range from EGP25,000–65,000 monthly. In luxury districts like Zamalek, New Cairo, Sheikh Zayed, and Fifth Settlement, a standard 120sqm apartment commands EGP36,000 monthly and above. Emerging areas such as Obour, El Shorouk, and Badr offer more affordable options at EGP12,000–18,000 monthly for similar-sized units.
Villa rentals start significantly higher, with properties in New Cairo, Sheikh Zayed, and 6th of October beginning at EGP61,800 monthly. Premium five-bedroom villas in Fifth Settlement and Cairo Festival City command EGP150,000+ monthly. The average breakdown shows three-bedroom villas at EGP143,000, four-bedroom at EGP72,400, and five-bedroom at EGP88,700 monthly.
Studios in prime compounds like District 5 in New Cairo rent for EGP45,000–75,000 monthly for 70–85sqm units, while older or less central studios range from EGP10,000–18,000 monthly.
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How do rental prices vary across Cairo's main neighborhoods and districts?
Cairo's rental market shows significant variation based on location, amenities, and neighborhood prestige.
| Neighborhood | 1-Bed Rent (EGP/month) | Rent per sqm (EGP) | Key Features |
|---|---|---|---|
| Zamalek | 50,000 - 120,000 | 24,000 - 27,600 | Luxury island location, high expat demand |
| New Cairo (5th Settlement) | 40,000 - 90,000 | 23,800 | Modern compounds, family-friendly |
| Sheikh Zayed | 35,000 - 60,000 | 24,900 | Suburban feel, popular with families |
| Maadi | 30,000 - 55,000 | 21,100 | Leafy streets, expat community |
| 6th of October City | 20,000 - 45,000 | 19,250 | Middle-range pricing, growth area |
| Nasr City | 18,000 - 40,000 | 21,950 | Dense area, commercial hub |
| Obour/El Shorouk | 15,000 - 25,000 | 18,500 | Budget-friendly, growth potential |
Zamalek commands the highest rents due to its central location, Nile views, and established expat community. New Cairo's Fifth Settlement attracts families seeking modern amenities and compounds. Sheikh Zayed offers suburban living with excellent infrastructure, while Maadi maintains its reputation as Cairo's traditional expat haven.
What is the typical rent per square meter based on property size?
Rent per square meter in Cairo varies significantly between premium and budget areas, with clear patterns emerging across different zones.
Premium areas including Zamalek, New Cairo, and Sheikh Zayed command EGP23,800–27,600 per square meter for apartments, while villas in these same areas rent for EGP21,400–24,400 per square meter. The highest rates of EGP27,600 per square meter are found in Zamalek's most prestigious buildings.
Mid-range neighborhoods such as Maadi and Nasr City average EGP21,100–21,950 per square meter. Budget-friendly areas like 6th of October City offer rates around EGP19,250 per square meter, while emerging areas like Obour and El Shorouk start at EGP18,500 per square meter.
Coastal areas outside Cairo, such as Alexandria, offer the most affordable rates at EGP7,300 per square meter. Current rental yields across Cairo average 6.77% as of Q2 2025, representing a significant increase from 5.53% in Q1 2024.
What is the total cost of renting including all fees, taxes, and maintenance?
Renting property in Cairo involves several additional costs beyond the base rental price that tenants and landlords must consider.
The annual real estate tax applies at 10% on net rental value after a mandatory 30% maintenance deduction. For example, a property renting at EGP40,000 annually would incur EGP2,800 in taxes. Agent and administrative fees typically range from 1–2% of the annual rent.
Maintenance and compound fees represent a significant ongoing cost, ranging from EGP2,000–6,000 monthly for premium compounds, though these are usually included in most rental listings. Utilities add approximately EGP500–2,000 monthly depending on property size and usage.
For property buyers, registration costs range from 1–3% of the purchase price. Lease agreements typically include annual rent increase caps ranging from 2–10% per year, providing some protection against sudden price jumps.
The total additional costs typically add 15–25% to the base rental price, making a EGP40,000 monthly rent cost approximately EGP46,000–50,000 when all expenses are included.
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How do mortgage costs compare with rental income for investment properties?
Cairo's mortgage market presents challenging dynamics for property investors, with standard rates significantly impacting investment returns.
Standard mortgage rates range from 24–26% as of Q3 2025, making conventional financing expensive for investment properties. For a EGP1,000,000 mortgage at 25%, monthly payments reach approximately EGP27,000, which exceeds most rental income from similar-priced properties renting for EGP25,000–55,000 monthly.
Government-subsidized loan programs offer dramatically better terms at 3–8% interest rates with tenors up to 30 years, targeting lower and middle-income buyers. Using the subsidized rate of 8%, the same EGP1,000,000 mortgage requires only EGP6,175 monthly payments, making investment properties cash-flow positive immediately.
Current gross rental yields average 6.77%, while net yields typically range from 4.5–5% after expenses. Mortgage costs using standard rates exceed most long-term rental income, making subsidized programs essential for positive cash flow. Investors often require 40–60% down payments to achieve manageable debt service ratios with conventional financing.
What are the differences between short-term and long-term rental returns?
Cairo's rental market offers distinct advantages for both short-term and long-term rental strategies, each with specific risk and return profiles.
Long-term rentals provide stable yields of 6–10%, with high-demand zones like Mohandessin and Zamalek achieving up to 13% returns. These rentals offer predictable monthly income with lower management requirements and reduced vacancy periods. Long-term tenants typically sign annual contracts with built-in rent escalation clauses.
Short-term rentals through platforms like Airbnb can generate 10–12% yields in city hotspots, with coastal and vacation areas reaching 14%. However, these higher gross returns come with increased operating costs including cleaning, maintenance, marketing, and higher vacancy rates during off-peak seasons.
Long-term rentals prove preferable for investors seeking stable cash flow with minimal hands-on management. Short-term rentals suit investors willing to actively manage properties in exchange for potentially higher returns, particularly in tourist-heavy districts like Zamalek and Downtown Cairo.
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Can you provide specific rental price examples across different neighborhoods?
Current market data reveals specific rental prices across Cairo's diverse neighborhoods and property types.
In New Cairo's premium compounds, a 120sqm apartment rents for EGP60,000 monthly, while a 70sqm apartment in Villette, Fifth Settlement commands EGP90,000 monthly due to its luxury amenities. District 5 offers 85sqm studios at EGP45,000 monthly, targeting young professionals and couples.
Villa rentals show significant variation, with a 220sqm villa in North Investors Area renting for EGP99,000 monthly, while three-bedroom villas in New Cairo average EGP143,000 monthly. Premium five-bedroom villas in established compounds can exceed EGP200,000 monthly.
Budget-conscious renters find options in emerging areas, with two-bedroom apartments in Maadi ranging from EGP30,000–55,000 monthly. Obour and El Shorouk offer similar-sized units for EGP12,000–18,000 monthly, representing significant savings for families willing to commute longer distances.
Zamalek's prime properties command premium rates, with one-bedroom apartments starting at EGP50,000 monthly and luxury units reaching EGP120,000+ monthly for Nile-view properties with modern amenities.
What tenant profiles are most common in Cairo's rental market?
Cairo's rental market serves diverse tenant segments, each with distinct preferences and budget ranges.
1. **Local families** from middle and upper-income brackets represent the largest segment, seeking long-term stability in family-friendly compounds with schools and amenities nearby.2. **Working professionals** including both Egyptian and international employees prefer locations with good transport links to business districts and modern amenities.3. **Expatriate communities** particularly target specific neighborhoods like Zamalek, Maadi, Fifth Settlement, and Sheikh Zayed for their international schools, western amenities, and established expat networks.4. **Students and young professionals** favor central and affordable zones including Nasr City, Downtown, and Heliopolis for proximity to universities and employment centers.5. **Diplomatic and international business personnel** concentrate in premium areas with security, international schools, and western-style housing, typically with generous housing allowances.Students and entry-level professionals typically budget EGP15,000–30,000 monthly, while expat families often have budgets exceeding EGP50,000 monthly. The diplomatic community represents the highest-spending segment, often requiring furnished properties with premium amenities.
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What are the current vacancy rates across different property categories?
Cairo's rental market shows healthy demand with improving vacancy rates across most property categories as of September 2025.
Current residential vacancy rates average approximately 7.2%, representing a significant improvement from 9.2% recorded in the previous year. This decline indicates strengthening demand and improving market conditions across the city.
Luxury projects in New Cairo and 6th of October show the lowest vacancy rates due to surging demand from both local high-income families and international executives. Modern compound developments with amenities like pools, gyms, and security maintain occupancy rates above 95%.
Premium neighborhoods including Zamalek, Maadi, and Sheikh Zayed experience minimal vacancy periods, often with properties renting within weeks of listing. The established expat demand and limited supply in these areas create competitive rental markets.
Emerging areas like Obour and El Shorouk show slightly higher vacancy rates as the market develops, but improving infrastructure and competitive pricing continue attracting tenants seeking value.
What are the smartest investment choices in Cairo's rental market?
Strategic property selection in Cairo's rental market focuses on high-demand locations with strong tenant profiles and appreciation potential.
Modern apartments in premium compounds within New Cairo, Zamalek, and Sheikh Zayed represent the strongest investment opportunity, delivering the highest yields, lowest vacancy rates, and consistent expat and family demand. These properties typically generate 7–10% annual yields with excellent liquidity.
Villas and luxury units in established premium zones provide steady rental income and higher capital appreciation but require significantly higher initial investment. These properties appeal to high-income families and expatriate executives with generous housing allowances.
Emerging areas including Obour, El Shorouk, and 6th of October offer growth potential with lower entry prices, making them attractive for investors seeking capital appreciation alongside moderate rental yields. Infrastructure improvements in these areas support long-term value growth.
Furnished apartments in compound developments with amenities like gyms, pools, and security command premium rents and attract quality tenants willing to sign longer leases. Properties near international schools and business districts maintain consistently high demand.
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What are the rental yields and how have they changed over recent years?
Cairo's rental market has experienced remarkable yield growth, making it increasingly attractive for property investors.
| Year | Average Rental Yield (%) | Rent Growth | Market Trend |
|---|---|---|---|
| 2020 | 5.2 | Baseline | Pre-pandemic stability |
| 2024 | 5.53 | +6% | Modest recovery |
| Q1 2025 | 5.53 | +10% | Accelerating growth |
| Q2 2025 | 6.77 | +89-90% | Exceptional growth |
| Current (Sep 2025) | 6.77+ | Moderating | Stabilizing at higher levels |
Rents and yields in premium Cairo districts increased by an exceptional 88–90% over the past 12 months, driven by strong demand, limited supply, and economic factors. This growth has moderated in 2025 but continues rising steadily.
The dramatic yield improvement from 5.2% in 2020 to 6.77% in Q2 2025 represents a 30% increase in investment returns, outpacing most regional markets. Premium neighborhoods including Zamalek and New Cairo have seen even higher yield improvements.
What is the forecast for Cairo's rental market over the next decade?
Cairo's rental market outlook shows continued strength across multiple timeframes, supported by urbanization, infrastructure development, and regional economic growth.
For the next year, rents and purchase prices are forecast to rise 10–30% driven by persistent inflation, strong demand, and limited new supply in prime areas. The market expects continued yield growth as rental increases outpace property price appreciation.
The five-year outlook projects sustained growth in premium suburbs including New Cairo, Sheikh Zayed, and Zamalek, with rental yields stabilizing around 7% or higher. Government infrastructure investments including the New Administrative Capital and smart city developments will support market expansion.
Over ten years, continued urbanization and government expansion projects position Cairo to outperform most MENA cities for rental growth and stability. Investment returns are expected to surpass Dubai for apartment investments while remaining slightly below Istanbul and Tel Aviv in metropolitan commercial sectors.
Cairo's rental yields of 6–8% compare favorably with Alexandria's 5–6% and coastal resorts' 7–10%. The market remains more accessible to foreign investors than many regional alternatives, with strong government support for property investment. Sales and rental prices stay below Dubai levels while offering similar or better yields with faster appreciation potential.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cairo's rental market presents exceptional opportunities for investors seeking high yields and capital appreciation in a rapidly growing metropolis.
With rental yields of 6.77% and continued infrastructure development, the city offers compelling investment potential compared to other regional markets.
Sources
- House Solution Egypt - Average Rent Cairo
- Sands of Wealth - Cairo Apartment Prices
- PropertyFinder Egypt - Cairo Rentals
- Sands of Wealth - Egypt Apartment Prices
- Fazwaz - Cairo Villa Rentals
- Bayut Egypt - New Cairo Rentals
- Sands of Wealth - Egypt Real Estate Forecast
- Global Property Guide - Egypt Rental Yields
- Global Property Guide - Egypt Price History
- Sands of Wealth - Egypt Market Outlook