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Yes, the analysis of Cairo's property market is included in our pack
Cairo's property market has emerged as one of the most dynamic investment opportunities in the Middle East.
Property prices in Cairo have surged dramatically in 2025, with apartments in premium neighborhoods ranging from EGP 50,000 to EGP 200,000 per square meter and gross rental yields averaging 6.5% to 8%, depending on area and property type. The market is characterized by strong short- and medium-term growth forecasts, continued robust demand, but also notable risks such as currency instability and oversupply in the luxury segment.
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Cairo's property market offers strong rental yields of 6.5-8% and has seen 10-30% annual price appreciation since 2022, making it attractive for both living and investment purposes.
However, investors should carefully consider currency risks, oversupply in luxury segments, and choose appropriate neighborhoods based on their specific goals.
| Aspect | Key Facts | Investment Implications |
|---|---|---|
| Current Prices | EGP 19,250-200,000/sqm depending on area | Wide range of entry points available |
| Rental Yields | 6.5-8% average, up to 10% in prime areas | Strong cash flow potential |
| Price Growth | 10-30% annually since 2022 | Significant capital appreciation opportunity |
| Best Areas | New Cairo, Maadi, Sheikh Zayed | Focus on established expat-friendly zones |
| Entry Budget | $70K-$250K+ depending on location | Multiple investment tiers accessible |
| Main Risks | Currency instability, luxury oversupply | Careful market positioning required |
| Transaction Costs | 5-8% total (taxes, fees, commissions) | Factor into overall investment calculation |
How much does property cost in Cairo right now by area and by property type?
As of September 2025, Cairo property prices vary dramatically depending on location and property type.
The New Administrative Capital leads premium pricing with apartments at EGP 27,600 per square meter and villas at EGP 26,850 per square meter. New Cairo's 5th Settlement represents the luxury segment with prices ranging from EGP 23,800 to EGP 200,000 per square meter, where 2-bedroom apartments cost between $120,000 and $200,000.
Mid-tier neighborhoods offer more accessible entry points. Sheikh Zayed apartments average EGP 24,900 per square meter with villas at EGP 24,400 per square meter. Nasr City properties cost around EGP 21,100 per square meter, with 2-bedroom apartments priced between $70,000 and $100,000. The 6th of October area provides the most affordable option at EGP 19,250 per square meter for apartments, with 2-bedroom units available for $80,000 to $120,000.
Established premium areas command higher prices. Maadi 2-bedroom apartments range from $130,000 to $180,000, making it popular among expats. Zamalek represents the luxury market with properties costing $150,000 to $250,000, while Heliopolis offers established neighborhood living at $90,000 to $140,000 for 2-bedroom apartments.
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What are the average rental yields in different neighborhoods?
Cairo's rental market delivers strong returns across most neighborhoods, with gross rental yields averaging 6.5% to 8% citywide.
The highest yields come from specific property types and locations. New Cairo studios can generate yields up to 10%, making them particularly attractive for investors seeking maximum returns. Mohandessin stands out with exceptional yields of 12% to 13% for 2-bedroom and 3-bedroom units, reflecting strong rental demand in this central area.
Mid-tier neighborhoods offer solid yield ranges. Sheikh Zayed properties typically yield 5% to 8% depending on unit type and specific compound location. The 6th of October and Heliopolis areas generate yields between 4% and 7%, providing steady rental income potential.
Prime new compounds throughout Cairo often achieve yields at the higher end of the range due to modern amenities and strong tenant demand. Apartments generally outperform villas on rental yields due to higher demand and better liquidity in the rental market.
How quickly have property prices changed in Cairo over the last three to five years?
Cairo property prices have experienced dramatic appreciation since 2022, with apartment prices increasing 10% to 30% annually across most areas.
Some neighborhoods have seen even more dramatic growth. Nasr City exemplifies this trend with a 52% year-over-year price increase from mid-2024 to mid-2025. East Cairo's 5th Settlement has witnessed extraordinary growth, with prices rising from EGP 60,000 to over EGP 200,000 per square meter during 2025 alone, representing more than triple appreciation.
This sustained double-digit annual growth stems from multiple factors including inflation, currency devaluation, and rising construction costs. The combination of limited supply in desirable areas and strong demand from both domestic and international buyers has created upward pressure on prices across all property segments.
Even traditionally stable areas have experienced significant appreciation, with many neighborhoods posting 50%+ gains between 2024 and 2025. This price momentum reflects broader economic conditions and the attractiveness of real estate as a hedge against currency instability.
What's the outlook for short-term price movements in the next 12 months?
Cairo property prices are forecasted to increase 8% to 15% over the next 12 months in prime and suburban areas.
This growth projection is driven by continuing limited stock availability, sustained high demand, and ongoing inflationary pressures. Developers and market analysts expect particular strength in New Cairo, the New Administrative Capital, and coastal development areas where new project launches remain constrained.
The short-term outlook reflects current market fundamentals including construction cost inflation, land scarcity in desirable locations, and steady buyer interest from both domestic and international investors. Currency factors may also contribute to price increases as property serves as a hedge against Egyptian pound volatility.
Supply constraints in the mid-market segment are expected to support price growth, while luxury properties may see more moderate increases due to existing oversupply conditions in that tier.
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What's the medium-term projection for prices and demand over the next three to five years?
Cairo's medium-term real estate outlook remains strongly positive, supported by fundamental demographic and economic drivers.
Population growth represents the primary demand driver, with Cairo expected to add approximately 1.2 million new urban residents annually through 2030. This rapid urbanization creates sustained housing demand across all market segments, particularly in affordable and mid-market categories where current supply deficits exist.
Infrastructure development projects including the New Administrative Capital, expanded metro lines, and new highway connections will likely drive appreciation in connected neighborhoods. These major investments create new commercial and residential hubs while improving accessibility to existing areas.
Supply-demand dynamics favor continued price appreciation, with ongoing shortages in affordable housing while luxury segments face oversupply challenges. Rental demand is expected to remain robust due to young demographics and urbanization trends, supporting investor returns over the medium term.
However, macroeconomic factors including currency stability and overall economic growth will significantly influence real returns, particularly for foreign investors converting between currencies.
What's the long-term trend for property values and population growth in Cairo?
Cairo's long-term property market fundamentals remain exceptionally strong due to sustained urbanization and population expansion.
The city's population growth trajectory supports continued housing demand well into the next decade. Urban migration from rural areas combined with natural population growth creates an estimated need for hundreds of thousands of new housing units annually. This demographic pressure provides a foundation for sustained property values regardless of short-term economic fluctuations.
Major infrastructure investments will reshape Cairo's property landscape over the coming decade. The New Administrative Capital project alone represents billions in government investment, while expanded transportation networks will open previously inaccessible areas to development. These projects create new property investment opportunities while supporting existing area values.
Long-term urbanization trends favor apartment living over traditional housing formats, supporting demand for modern residential developments. The growing middle class seeks amenities and locations that newer compounds provide, creating sustained demand for quality residential projects.
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Which neighborhoods are considered best for living versus renting out versus reselling?
| Neighborhood | Best For | Key Characteristics |
|---|---|---|
| New Cairo | Living, Renting | Upscale compounds, expat community, family-friendly, strong appreciation |
| Maadi | Living, Renting | Established expat hub, green spaces, international schools, strong community |
| Nasr City | Living, Flipping | Central location, rapid appreciation, good for first-time buyers |
| 6th of October | Living, Renting | Affordable entry point, new compounds, family-oriented developments |
| Sheikh Zayed | Living, Renting | Gated communities, modern amenities, rising rental yields |
| Zamalek | Living | Luxury downtown living, cultural attractions, limited new supply |
| North Coast | Renting, Holiday | High seasonal tourist yields, vacation home potential |
What property types—apartments, villas, studios—offer the best returns for each use case?
Apartments deliver the strongest overall returns across all investment strategies in Cairo's current market.
For rental income generation, studios and 1-2 bedroom apartments provide the highest yields. New Cairo studios can achieve yields exceeding 10%, while Mohandessin apartments generate 12-13% returns. These smaller units appeal to young professionals, couples, and expatriate workers, creating consistent rental demand and strong cash flow.
Apartments also offer superior liquidity compared to villas, making them better choices for investors planning eventual resale. The broader buyer pool for apartments versus villas means shorter marketing periods and more predictable sale processes.
Villas generally produce lower rental yields but may appeal to buyers seeking luxury living or family accommodation. However, oversupply in the premium villa segment represents a current market risk, particularly for properties above EGP 8 million where absorption rates have slowed significantly.
Commercial properties can generate yields of 7-9% but require substantially more capital and active management compared to residential investments. For most individual investors, residential apartments provide the optimal balance of returns, liquidity, and management requirements.
What are the main risks to consider, such as oversupply, legal issues, or currency instability?
Currency instability represents the primary risk for Cairo property investors, particularly those converting between Egyptian pounds and foreign currencies.
The Egyptian pound's volatility creates complex return calculations for international investors. Currency devaluation can significantly impact real returns when converting rental income or sale proceeds back to foreign currencies, while also complicating property repatriation strategies for non-resident investors.
Oversupply in the luxury segment poses specific risks for high-end properties. The EGP 8 million-plus market segment shows slowing sales velocity and extended absorption periods, making premium properties potentially illiquid investments requiring longer holding periods.
Developer solvency and project delivery risks affect pre-construction purchases. Many Cairo developments offer attractive installment payment plans, but buyers face potential delays or non-delivery risks if developers encounter financial difficulties during construction phases.
Legal and documentation issues require careful due diligence. Property title verification, zoning compliance, and building code adherence are essential but can be complex in Egypt's regulatory environment. Professional legal assistance is crucial for navigating these requirements and ensuring proper property ownership transfer.
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How much budget do you realistically need to enter the market in each area?
Cairo property investment requires budgets ranging from $70,000 to over $250,000 depending on target area and property type.
Entry-level investment opportunities exist in subcenter neighborhoods like Nasr City and 6th of October, where 2-bedroom apartments cost $70,000 to $120,000. These areas provide accessible entry points for first-time investors while offering solid appreciation potential and reasonable rental yields.
Mid-market expat-focused zones require higher budgets. New Cairo properties typically cost $120,000 to $200,000 for 2-bedroom apartments, while Maadi commands $130,000 to $180,000 for similar units. These neighborhoods offer stronger rental demand from international tenants and better long-term value retention.
Luxury market entry requires $150,000 to $250,000 budgets for established premium areas like Zamalek or high-end New Cairo compounds. Ultra-luxury properties in the newest developments can reach seven-figure prices, particularly for large villas or penthouse apartments in prime compounds.
Investors should also budget for transaction costs including transfer taxes, registration fees, and legal expenses, which typically add 5-8% to total acquisition costs.
If you want to buy now, where should you position yourself depending on your goal—living, renting, or flipping?
For personal living purposes, focus on established neighborhoods with strong amenities and international communities.
Maadi, New Cairo, Heliopolis, and Zamalek offer the best lifestyle options for residents, particularly expatriate families. These areas provide international schools, healthcare facilities, shopping centers, and established social communities that support comfortable long-term living.
Rental investment strategies should target New Cairo, Mohandessin, Sheikh Zayed, and North Coast properties. These locations generate the highest yields while attracting reliable tenant pools including young professionals, expatriate workers, and seasonal vacation renters.
Property flipping opportunities exist primarily in rapidly appreciating areas like Nasr City, 6th of October, and Fifth Settlement. These neighborhoods show strong price momentum and broad buyer appeal, supporting quick resale potential with significant capital gains.
Studios and 2-bedroom apartments in up-and-coming compounds provide maximum liquidity and rental appeal across all strategies. These property types attract the broadest tenant and buyer pools while requiring manageable investment amounts and maintenance responsibilities.
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What are the transaction costs, taxes, and legal steps involved in buying property in Cairo?
Cairo property transactions involve multiple taxes and fees totaling approximately 5-8% of property value.
Transfer tax represents the largest cost at 2.5% of official or actual sale price, typically paid by the seller. Registration fees add another 1-3% of property value, paid by the buyer during the official title transfer process. Stamp duty costs approximately 0.5% of property value, usually shared between buyer and seller.
Additional costs include agent commissions and developer fees, which vary but often total 2-3% each for buyer and seller sides. New properties may include 14% VAT on developer sales, significantly increasing total acquisition costs for new construction purchases.
The legal process requires several steps: comprehensive due diligence including title searches and property verification, Land Registry checks to confirm ownership and encumbrances, signature authentication and notarization, official registration at government offices, and structured payment scheduling often involving multiple installments.
Annual real estate tax applies at 10% of net rental value, though major exemptions exist for properties with annual rental values below EGP 24,000. This tax burden remains minimal for most residential properties but should be factored into long-term ownership costs.
Professional legal assistance is strongly recommended given the complexity of Egyptian property law and registration requirements. Proper documentation and legal compliance protect investors from future ownership disputes or regulatory issues.
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 real estate market presents compelling opportunities for both investors and residents, with strong rental yields and significant appreciation potential.
Success requires careful neighborhood selection, proper due diligence, and realistic assessment of currency and market risks.
Sources
- House Price Egypt - Sands of Wealth
- Egypt Rental Yields - Global Property Guide
- Egypt's Residential Property Prices Soar - Daily News Egypt
- Egypt Real Estate Market Forecast - Select Realty
- Egypt's Real Estate Supply vs Demand - Egyptian Real Estate
- Egypt CBI Approved Projects - CitizenX
- Real Estate Market Trends in Egypt - Egyptian Real Estate
- Housing Prices in Egypt Rose 30% - Homes Overseas
- Cairo Property - Sands of Wealth
- Egypt Price History - Global Property Guide