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Cairo's property market is experiencing unprecedented growth with record-breaking price increases in 2025.
Property prices have surged dramatically over the past five years, with some districts seeing year-over-year increases of up to 180% in 2024, making Cairo one of the most dynamic but volatile real estate markets in the region.
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Cairo's property market is booming with average apartment prices reaching EGP 24,000-27,600 per square meter in premium districts.
Rental yields are competitive at 6-13% depending on location, while new housing supply struggles to meet rising demand from population growth and foreign investment.
| Market Indicator | Current Status (Sep 2025) | Key Details |
|---|---|---|
| Average Apartment Prices | EGP 24,000-27,600/sqm | Premium districts; luxury can reach EGP 200,000/sqm |
| 5-Year Price Growth | 11% CAGR since 2020 | Up to 180% year-over-year in 2024 |
| Central Cairo Rental Yields | 8-13% | Prime zones like Zamalek, New Cairo |
| New Housing Supply | 30,000 units/year | 500,000+ under construction in NAC |
| Occupancy Rates | 50-52% residential | 8.6-9% commercial vacancy |
| Foreign Investment | High inflows | Gulf investors, diaspora funding |
| Population Growth | 500,000-600,000/year | Driving sustained housing demand |
What are the current average property prices in Cairo for apartments and houses?
As of September 2025, Cairo's property prices have reached record levels across all segments.
Apartments in premium districts like New Administrative Capital, Zamalek, and New Cairo cost between EGP 24,000 and 27,600 per square meter. These areas represent the mainstream luxury market for middle to upper-middle class buyers.
For ultra-luxury properties in the Fifth Settlement and New Administrative Capital, prices can soar between EGP 50,000 and 200,000 per square meter. These premium developments target high-net-worth individuals and international buyers seeking top-tier amenities and locations.
Houses and villas in desirable neighborhoods command similar rates to premium apartments, typically ranging from EGP 24,000 to 26,850 per square meter. Coastal properties and new development areas often exceed these averages due to their strategic locations and modern infrastructure.
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How have property prices in Cairo changed over the past 5 years?
Cairo's property market has experienced explosive growth since 2020, with a compound annual growth rate of approximately 11%.
The most dramatic surge occurred in 2024, when certain districts like New Cairo and 6th of October City saw year-over-year price increases of up to 175-180%. This extraordinary spike was primarily attributed to Egyptian pound devaluation and investors using real estate as an inflation hedge.
After the extreme surges of 2023-2024, price growth began moderating in 2025, though properties still appreciated nearly 30% in the first half of 2025 alone. This indicates that while the market remains hot, the pace of increase is becoming more sustainable.
The consistent upward trajectory reflects both genuine housing demand from Cairo's growing population and economic factors including currency instability and limited investment alternatives for Egyptian savers.
What are the rental yields right now in central Cairo versus suburban areas?
Cairo offers competitive rental returns compared to many international markets, with yields varying significantly by location and property type.
Prime central areas like Zamalek, Mohandessin, and New Cairo deliver the strongest performance with rental yields ranging from 8% to 13% for well-positioned apartments. These high-demand zones benefit from strong expat and professional tenant markets.
The broader central Cairo average sits between 6.77% and 8%, making it attractive for buy-to-let investors seeking steady income streams. Short-term rental properties through platforms like Airbnb achieve similar yields but with 50% average occupancy rates.
Suburban areas including Sheikh Zayed and 6th of October typically generate more modest returns of 5-7%, while older districts may only achieve 4-6% due to lower rental demand and older infrastructure.
How many new housing units are being built and delivered each year in Cairo?
Cairo's construction sector is delivering approximately 30,000 new residential units annually as of 2025.
| Development Area | Units Under Construction | Annual Delivery Rate |
|---|---|---|
| New Administrative Capital | 500,000+ units | 12,000-15,000/year |
| East Cairo Districts | 150,000 units | 6,000-8,000/year |
| 6th of October City | 100,000 units | 4,000-5,000/year |
| Sheikh Zayed | 80,000 units | 3,000-4,000/year |
| Other Greater Cairo | 120,000 units | 5,000-6,000/year |
| Total Greater Cairo | 950,000+ units | 30,000/year |
The first quarter of 2025 saw 7,500 new residential deliveries, with full-year projections reaching 28,500 units for key development areas. The New Administrative Capital alone has over 500,000 units under various stages of construction, representing the largest urban development project in the region.
What is the current occupancy rate for residential and commercial properties in the city?
Cairo's occupancy rates reflect a tight rental market with strong underlying demand across both residential and commercial sectors.
Residential rental properties, particularly furnished apartments targeting professionals and expats, maintain occupancy rates of 50-52%. Unfurnished middle-class apartments achieve higher occupancy due to stable long-term tenants and more affordable rental rates.
The commercial office market has shown significant improvement with vacancy rates dropping to 8.6-9% for premium office spaces, down from above 10% in the previous year. This recovery indicates strengthening business confidence and economic activity in Cairo's central business districts.
The combination of strong residential demand and recovering commercial markets demonstrates Cairo's resilient property fundamentals despite economic volatility.
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How affordable is real estate in Cairo compared to average household income?
Property affordability in Cairo has deteriorated significantly as prices have outpaced wage growth by a substantial margin.
Annual property price increases of 25-90% have far exceeded typical Egyptian salary growth, making home ownership increasingly unattainable for middle-income households. Most wage earners can no longer afford to purchase properties in desirable areas without substantial family assistance or extended payment plans.
The majority of current property transactions are now driven by Egypt's upper-middle class, diaspora buyers, and investors rather than local wage-earning families. This shift indicates that the market has become primarily investment-driven rather than owner-occupier focused.
Developers have responded by offering extended payment plans of up to 10 years with interest-free options to help buyers manage the affordability gap, though these solutions primarily benefit higher-income segments.
What government policies or incentives are currently influencing the Cairo property market?
The Egyptian government has implemented several policies to support both local and international property buyers while managing rapid market growth.
The "Your Home in Egypt" program specifically targets expatriates and diaspora buyers, offering streamlined purchasing processes and attractive payment terms for overseas Egyptians looking to invest in their homeland.
Extended payment plans of up to 10 years with interest-free options have become standard practice, supported by government backing to offset limited mortgage accessibility for average buyers.
Currency devaluation policies and VAT reforms have significantly impacted pricing structures, affecting developer profits and ultimately property costs. Large-scale infrastructure investments in the New Administrative Capital and satellite cities represent major government commitments to urban expansion.
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How much foreign investment is flowing into Cairo's real estate sector?
Foreign investment in Cairo's real estate sector has reached high levels as international buyers view Egyptian property as an attractive opportunity.
The Egyptian pound devaluation has made properties significantly more affordable for foreign buyers, particularly those from Gulf countries and the Egyptian diaspora in Europe and North America. Most large development projects now receive substantial foreign or diaspora funding.
Unlike many countries with strict foreign ownership restrictions, Egypt actively welcomes overseas buyers through targeted housing programs and streamlined legal processes. This open approach has attracted substantial capital from regional and international investors.
Gulf investors have been particularly active, viewing Cairo's market as offering higher yields than saturated markets in Dubai or Riyadh, while benefiting from cultural familiarity and strong rental demand from the business community.
What are the main risks for property buyers and investors in Cairo right now?
Currency risk represents the primary concern for Cairo property investors, especially those with local Egyptian pound income streams.
- Currency volatility: Egyptian pound depreciation can significantly impact returns for local income earners while benefiting foreign buyers
- Construction delays: Intense developer competition and material price inflation have led to project delays and cost overruns
- Regulatory uncertainty: Occasional changes in ownership laws, taxation rules, and capital repatriation regulations create compliance challenges
- Market overheating: Rapid price increases may not be sustainable long-term, particularly if economic conditions stabilize
- Infrastructure strain: Rapid development may outpace supporting infrastructure in some new districts
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Egypt versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which neighborhoods in Cairo are seeing the strongest demand and price growth?
Several key areas are driving Cairo's property market boom with exceptional demand and price appreciation.
The New Administrative Capital leads growth metrics as Egypt's flagship development project, offering modern infrastructure and government backing that attracts both investors and end-users seeking contemporary living standards.
New Cairo, particularly the Fifth Settlement, continues its dominance as a preferred location for upper-middle class families and international buyers, benefiting from established amenities and proximity to business districts.
Sheikh Zayed and 6th of October City have emerged as strong performers, offering more affordable entry points while still providing modern amenities and good connectivity to central Cairo. These areas appeal to young professionals and growing families seeking value for money.
What is the outlook for mortgage interest rates and availability of financing in Egypt?
Mortgage financing in Cairo remains challenging with high interest rates and limited bank lending for average property buyers.
Interest rates remain elevated as part of Egypt's inflation-control monetary policy, making traditional mortgages expensive for most buyers. Banks have maintained strict lending criteria, limiting mortgage accessibility for middle-income applicants.
Most property purchases now rely on developer installment plans rather than conventional bank mortgages, with buyers utilizing extended payment schedules over 5-10 years directly with developers.
The financing landscape favors cash buyers and those with substantial down payments, contributing to the market's shift toward investor-driven rather than owner-occupier transactions.
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How is Cairo's population growth and urban expansion expected to affect housing demand?
Cairo's rapid population growth is creating sustained pressure on housing demand that underpins long-term market fundamentals.
The metropolitan area is adding 500,000-600,000 new residents annually, creating continuous demand for approximately 100,000-120,000 new housing units each year to accommodate growing families and urbanization trends.
Current supply of 30,000 new units annually falls well short of demographic demand, creating a structural housing shortage that supports price growth even during economic uncertainty.
Urban expansion into satellite cities and the New Administrative Capital is helping accommodate some of this growth, but central Cairo districts continue experiencing intense demand due to employment concentration and established infrastructure.
This population dynamic provides fundamental support for property values and rental demand, making Cairo an attractive long-term investment destination despite short-term market volatility.
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 property market offers exceptional opportunities for informed investors willing to navigate currency and regulatory risks.
With strong rental yields, population-driven demand, and government support for development, the market shows promising long-term fundamentals despite short-term volatility.
Sources
- Sands of Wealth - House Prices in Egypt
- Edara PS - Luxury Apartment Prices
- International Investment - Egyptian Housing Price Surge
- Sands of Wealth - Egypt Real Estate Market Trends
- Sands of Wealth - Average House Price in Egypt
- Daily News Egypt - Property Price Growth
- Egypt Real Estate Authority - Market Trends
- Global Property Guide - Egypt Rent Yields
- Sands of Wealth - Egypt Real Estate Forecast
- Entrepreneur - Egypt's Capital Development
-Property Taxes and Fees in Cairo: Complete Guide for Investors
-How Much Does Property Cost in Cairo: 2025 Price Analysis
-How to Invest in Cairo Property: Step-by-Step Guide
-How to Buy a House in Cairo: Legal Process for Foreign Buyers
-Average Property Prices in Cairo by District and Type