The local real estate market remained dynamic, with various sectors experiencing steady growth and innovative shifts as developers prioritised project deliveries amidst growing economic stability.
Improved rental rates and continued government initiatives, supported by rising tourism numbers, boosted market activity and investor confidence across Cairo’s diverse property landscape.
Almost 83,000 sq. m. of gross leasable area (GLA) was completed during the second quarter of the year, primarily comprising new phases within office parks across New Cairo. This addition increased the total office stock to approximately 2.28 million square meters, according to data from the real estate research agency JLL.
A further 143,200 sq. m. of office space, mainly located in New Cairo, is scheduled for completion in H2 2025.New administrative project launches have been limited as developersprioritise delivering their ongoing phases of development.
“However,several new office park announcements have emerged in west Cairo.Once completed, these developments would present attractiveofferings for businesses seeking high-quality office space with moreadvantageous rental terms compared to the East, despite theirlocation being away from the primary business district,” read a JLL report, a copy of which was made available to The Egyptian Gazette.
In terms of performance, average vacancy rates dropped to 7.4 per cent inQ2 2025 compared to 10.4 per cent during the same period last year. Primeoffice buildings, in particular, exhibited outstanding performance,with vacancy rates averaging 4.5 per cent, according to the report.
“This was mainly as a result of relocations and some new market entrants, with higher demand forlarger office spaces. Over the same period, average Grade A rentsrose by around 4.7 per cent, reaching $334 per sq. m. per annum. Thestabilising economic conditions have provided increased certainty forboth landlords and tenants, facilitating more flexible rentalnegotiations from the landlords’ side as they seek to secure tenants,” it said.
“Despite this, landlords of prime office buildings continued tomaintain control over their asking rates, with figures achieving anannual growth rate of 4.6 per cent to stand at $457 per sq. m. per annum,” it added.
