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Cairo offers rental yields ranging from 6.5% to 13% depending on property type and location, making it one of the most attractive investment destinations in the MENA region. The city's diverse property market includes apartments, villas, studios, and commercial units, with central neighborhoods like Mohandessin and Zamalek delivering the highest returns.
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Cairo's rental market currently delivers gross yields between 6.5% and 13%, with studios and central apartments performing best.
Purchase prices range from EGP 18,500/sqm in emerging areas to EGP 27,600/sqm in premium districts, with total buying costs adding 6-8% to the property price.
| Property Type | Average Yield | Best Areas |
|---|---|---|
| Studios | 9.8-10% | New Cairo, Mohandessin |
| Apartments | 6.5-8% | Zamalek, Mohandessin, New Cairo |
| Villas | 5-6.5% | Sheikh Zayed, 6th October |
| Commercial Units | 7-9% | New Administrative Capital |
| Premium Apartments (Central) | 12-13% | Mohandessin, Zamalek |
What are the main property types available in Cairo for rental investment?
Cairo's rental investment market offers five distinct property categories, each serving different tenant segments and delivering varying returns.
Apartments represent the most popular choice for investors, ranging from studios to multi-bedroom flats with high demand from young professionals, expats, and Egypt's growing middle class. These properties are available in older buildings, modern compounds, and high-rise towers across the city.
Studios and lofts have gained significant popularity among singles and young professionals due to their affordability and efficient layouts. These compact units are particularly sought after in central districts and trendy neighborhoods, offering some of the highest rental yields in the market.
Villas and townhouses provide spacious living with private gardens, pools, and clubhouse access, mainly located in suburban areas like New Cairo, 6th of October, and Sheikh Zayed. While requiring higher initial investment, they attract families and executives willing to pay premium rents.
Commercial units including office spaces and retail properties show growing demand, fueled by new business districts and government development projects throughout Cairo.
Which neighborhoods or districts in Cairo offer the best rental demand and returns?
New Cairo, particularly the Fifth Settlement, leads Cairo's rental market with excellent demand due to modern infrastructure, proximity to the New Administrative Capital, and luxury amenities that attract both local and international tenants.
Mohandessin and Zamalek deliver the highest rental yields in the city, reaching up to 13% for well-located apartments. These central neighborhoods feature historic buildings and remain consistently favored by professionals and expats for their prime locations and established infrastructure.
6th of October City offers affordable entry points with diverse property styles and rising demand due to proximity to industrial zones and well-planned residential neighborhoods. Sheikh Zayed City attracts investors seeking upscale villas and townhouses, supported by strong infrastructure and increasing rental demand from affluent families.
Maadi continues to appeal to expat families and provides good yields with generally lower vacancy rates. Emerging areas including Mostakbal City, El Shorouk, and the New Administrative Capital show strong rental and appreciation potential as government investment drives development.
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How do rental yields differ between apartments, villas, and smaller studios?
Studios deliver the highest rental yields in Cairo, typically achieving 9.8% to 10% gross returns, particularly in New Cairo where demand from young professionals and students remains consistently strong.
| Property Type | Gross Yield Range | Net Yield Range |
|---|---|---|
| Studios | 9.8% - 10% | 7.8% - 8% |
| Apartments (1-3 bed) | 6.5% - 8% | 4.5% - 6% |
| Mohandessin Apartments | 12% - 13% | 10% - 11% |
| Villas/Townhouses | 5% - 6.5% | 3% - 4.5% |
| Commercial Units | 7% - 9% | 5% - 7% |
Apartments provide solid middle-ground yields of 6.5% to 8%, with exceptional performance in central locations like Mohandessin where yields can reach 12% to 13%. Villas require higher investment but deliver lower yields of 5% to 6.5% due to their premium pricing and smaller tenant pool.
Net rental yields after expenses typically run 1.5% to 2% lower than gross yields across all property types, making actual returns more modest but still competitive regionally.
What is the average purchase price per square meter in different areas of Cairo?
As of September 2025, Cairo property prices vary significantly by location, with premium areas commanding substantial premiums over emerging districts.
| Area | Price (EGP/sqm) | Price (USD/sqm) |
|---|---|---|
| New Administrative Capital | 27,600 | 555 |
| Sheikh Zayed | 24,900 | 501 |
| Zamalek | 24,100 | 485 |
| New Cairo (5th Settlement) | 23,800 | 479 |
| Nasr City | 21,100 | 425 |
| 6th of October City | 19,250 | 387 |
| Obour/El Shorouk | 18,500 | 372 |
The New Administrative Capital leads pricing at EGP 27,600 per square meter, reflecting its status as Egypt's new government and business hub. Sheikh Zayed and Zamalek command similar premium pricing around EGP 24,000-25,000 per square meter due to their established luxury positioning.
Mid-tier areas like 6th of October City and emerging districts offer more affordable entry points below EGP 20,000 per square meter, providing opportunities for investors seeking higher rental yields relative to purchase costs.
How much do total purchase costs including fees, registration, and taxes typically add up to?
Total purchase costs in Cairo typically add 6% to 8% to the property's base price, covering various fees, taxes, and professional services required for legal ownership transfer.
Registration fees remain minimal at 0.04% of the property value, capped at EGP 2,000 maximum. Transfer tax adds 2.5% to the total cost, representing the largest single additional expense beyond the property price.
Legal fees typically range from 1% to 2% of the purchase price, while real estate agent commissions add another 2% to 3%. Notary fees contribute an additional 0.5% to 1% for document authentication and legal formalities.
For a typical EGP 5 million property purchase, investors should budget EGP 300,000 to EGP 375,000 in additional costs beyond the agreed property price. These expenses must be paid in cash even when using mortgage financing for the main purchase.
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What are the average ongoing expenses like maintenance, service charges, and property taxes?
Ongoing property expenses in Cairo vary significantly based on building type, age, and location, with newer compounds typically charging higher monthly fees than older buildings.
Maintenance and service charges range from EGP 500 to EGP 2,500 monthly for apartments, while villas in gated communities can incur substantially higher fees for landscaping, security, and amenity maintenance. Older buildings generally have lower service charges but may require more individual maintenance investment.
Annual property tax equals 10% of the annual rental value after a 30% deduction for residential properties. Properties with annual rental values below EGP 24,000 remain exempt from this tax. For a property generating EGP 100,000 in annual rent, the tax liability would be EGP 7,000.
Utility connection fees may apply for new properties, while ongoing utility costs depend on actual consumption. Property insurance, while not mandatory, typically costs 0.1% to 0.3% of the property value annually for comprehensive coverage.
It's something we develop in our Egypt property pack.
If I buy with a mortgage, what would the financing costs look like compared to buying in cash?
Mortgage financing is available to foreigners in Egyptian pounds, with loan-to-value ratios reaching 80% to 85% and repayment terms extending up to 30 years.
Interest rates for residential mortgages range from 5% for government-subsidized programs to 14% for market-rate financing. Commercial and touristic property mortgages typically carry higher rates between 7% and 12.75%, reflecting increased risk perception by lenders.
Bank mortgages for residential units average 3% to 8% interest depending on the borrower's profile and property type. Foreign buyers often face higher rates and stricter documentation requirements compared to Egyptian nationals.
Cash buyers avoid substantial interest costs and bank fees while gaining immediate full ownership and negotiating power. However, they miss potential leverage benefits and tie up significant capital that could be deployed elsewhere. Most investors currently prefer cash purchases due to currency risk concerns, though financing options continue improving with government support for the real estate sector.
What are the typical monthly rents for different property types and sizes?
Rental rates in Cairo vary significantly by location, property type, and amenities, with premium areas commanding substantial premiums over emerging districts.
| Area & Type | Property Size | Monthly Rent (EGP) |
|---|---|---|
| New Cairo | Studio | 12,200 - 20,000 |
| New Cairo | 1 Bedroom | 13,100 - 23,000 |
| New Cairo | 2 Bedroom | 30,500 |
| New Cairo | 3 Bedroom | 23,600 - 40,000 |
| Mohandessin | 3 Bedroom | 23,000 - 36,000 |
| Zamalek | 2 Bedroom | 18,000 - 30,000 |
| 6th October | 2 Bedroom | 16,000 - 20,000 |
New Cairo commands the highest rents across all property types, with three-bedroom apartments reaching EGP 40,000 monthly in premium compounds. Central areas like Mohandessin and Zamalek maintain strong rental rates due to location advantages and established infrastructure.
6th of October City offers more affordable rental rates while still providing modern amenities, making it attractive for middle-income tenants and investors seeking higher yield opportunities.
Who are the main renter profiles in Cairo—locals, expats, students, or short-term visitors?
Cairo's rental market serves four primary tenant segments, each with distinct preferences and budget ranges that influence property demand patterns.
1. **Local Egyptian tenants** form the largest segment, including middle-class families, young professionals, and university students seeking affordable housing near employment centers and educational institutions.2. **Expatriate professionals** represent the highest-paying tenant category, including diplomats, embassy staff, international consultants, and executives working for multinational companies who typically prefer furnished apartments in premium locations.3. **Students** from both local and international backgrounds favor studios and compact apartments near Cairo's numerous universities, prioritizing affordability and proximity to campus facilities.4. **Short-term visitors** including tourists, digital nomads, and business travelers primarily utilize serviced apartments and Airbnb properties, with demand peaking during high tourist seasons.5. **Government employees** working in the New Administrative Capital increasingly seek rental properties in nearby developments, driving demand in emerging eastern districts.
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What are the current vacancy rates by property type and neighborhood?
Cairo's residential vacancy rate has improved significantly to approximately 7.2% in early 2025, down from 9.2% in 2024, indicating strengthening rental demand across the city.
Premium areas including Mohandessin, Zamalek, and New Cairo compounds consistently report the lowest vacancy rates due to high tenant demand and superior amenities. These established neighborhoods maintain occupancy rates above 95% for well-maintained properties.
Serviced apartments achieve the lowest vacancy rates among all property types, maintaining high occupancy even during off-peak seasons due to their flexibility and furnished nature appealing to various tenant segments.
Emerging areas and older buildings may experience higher vacancy rates, particularly properties lacking modern amenities or convenient transportation access. New developments often require 6-12 months to achieve stabilized occupancy as the market becomes aware of available units.
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How do rental yields in Cairo today compare to one year ago and five years ago, and what is the forecast for one year, five years, and ten years ahead?
Cairo rental yields have shown remarkable improvement from their 2024 lows, recovering to competitive levels that exceed historical averages in many segments.
| Time Period | Average Yield | Premium Areas |
|---|---|---|
| 2020 (apartments) | 7.1% - 7.5% | 8% - 9% |
| 2024 average | 5.5% | 6% - 7% |
| 2025 current | 6.8% - 8% | 8% - 13% |
| 2026 forecast | 7% - 9% | 9% - 14% |
| 2030 forecast | 8% - 10% | 10% - 15% |
| 2035 forecast | 10%+ | 12%+ |
Current yields in Mohandessin and Zamalek have rebounded strongly to 8% to 13%, significantly exceeding the city average. Compound developments are forecast to achieve 7% to 9% yields within one year as infrastructure improvements drive demand.
Five-year projections suggest yields will reach 8% to 10% in premium areas as the New Administrative Capital becomes fully operational and economic reforms take effect. Ten-year forecasts indicate yields exceeding 10% in coastal and new city developments as Egypt's economy matures.
How does Cairo's rental yield compare with other large cities in the region or similar international markets?
Cairo delivers competitive rental yields compared to regional and international markets, often outperforming established investment destinations.
| City | Average Gross Yield | Market Status |
|---|---|---|
| Cairo | 7.9% | Emerging/Growth |
| Istanbul | 8.1% | Established/Volatile |
| Dubai | 5% - 9% | Mature/Premium |
| Tunis | 7.2% | Emerging |
| Casablanca | 7.0% | Stable/Growing |
| London | 2% - 4% | Mature/Low Yield |
| New York | 3% - 4.2% | Mature/Low Yield |
Cairo's 7.9% average yield positions it favorably against regional competitors, matching Istanbul's performance while offering greater political stability than some alternatives. The city significantly outperforms mature Western markets like London and New York, which deliver yields below 5%.
Compared to regional leaders like Dubai, Cairo offers similar yield potential at substantially lower entry costs, making it accessible to a broader range of investors seeking emerging market exposure with developed infrastructure.
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 offers compelling opportunities for property investors seeking yields between 6.5% and 13%, with studios and central apartments delivering the strongest returns.
The combination of improving vacancy rates, diverse tenant demand, and competitive regional pricing makes Cairo an attractive emerging market investment destination for both income and capital appreciation.
Sources
- Sands of Wealth Egypt Real Estate Market Outlook
- Sands of Wealth Cairo Property Guide
- Global Property Guide Egypt Rental Yields
- Sands of Wealth Egypt Real Estate Forecast
- Sands of Wealth Average Apartment Prices Egypt
- Sands of Wealth Average House Prices Egypt
- Global Property Guide Middle East Rent Yields
- Daily News Egypt Q1 2025 Real Estate Performance