Cairo’s office market continued to strengthen during the second quarter of 2026 as demand for premium office space exceeded available supply. The shortage of high-quality Grade A offices pushed average rents up by 20 percent compared with the same period last year, giving landlords greater pricing power across the market.
A new property market report found that average asking rents reached about USD 325 per square meter each year. In US dollar terms, rents increased by around 2 percent. However, the rise was much larger in Egyptian pounds because of the weaker local currency.
Businesses continue to favor modern office buildings even as rental costs increase. Grade A offices now command an average annual rent of about USD 335.60 per square meter, compared with USD 283.50 for older Grade B properties. That places premium office space at an 18.4 percent price advantage over older buildings.
Business parks in key commercial districts are attracting even stronger demand. Grade A office space averages about USD 348 per square meter annually in New Cairo and USD 354 in West Cairo. Companies are increasingly choosing offices that offer modern facilities, sufficient parking, and spaces that are ready for immediate use.
New Cairo remains the city’s leading office market. The district is home to 44 of Cairo’s 77 active office developments, making it the largest concentration of modern office projects in the capital.
Flexible office space is also becoming a permanent choice for many international companies instead of serving only as a temporary solution. Global businesses are increasingly selecting serviced offices that can function as long-term headquarters.
Recent leasing activity reflects that trend. International workspace provider Spaces secured approximately 16,000 square meters at The Ark Business Park. Two additional flexible office operators also signed leases covering about 7,000 square meters each at Eastmain by Mobco and UBL by Tameer.
Developers are also changing their sales strategies as buyers face reduced purchasing power. Payment plans have become significantly longer, allowing customers more time to complete purchases. Installment periods now range from about 4.6 years for projects due in 2026 to nearly 9.7 years for developments expected to finish in 2030.
Many landlords are also helping tenants lower their initial costs by delivering offices in partially finished condition. Others are spreading customization expenses across the lease period to attract multinational companies looking for new regional offices.
Office sale prices continue to vary widely across Cairo. Downtown Cairo remains the most affordable business district, with average prices around EGP 67,000 per square meter. New Cairo and El Sheikh Zayed fall into the middle of the market, with average prices ranging from EGP 182,000 to EGP 184,000 per square meter.
New Zayed has become the city’s most expensive office market, with average prices exceeding EGP 206,000 per square meter. Meanwhile, the 6th of October area shows the widest range of prices, reflecting differences in building quality and project specifications rather than overall market strength.
Property analysts say the shortage of Grade A office space remains one of the biggest challenges facing Cairo’s commercial real estate market. Demand from multinational companies continues to exceed the available supply of large, modern office buildings, especially as Egypt expands its business process outsourcing industry.
The market also faces additional uncertainty as a planned 14 percent value-added tax on leased administrative office space approaches. Industry experts say the new tax could reduce rental returns for investors and influence future demand for commercial property.
Despite these challenges, strong demand for premium office space continues to support rental growth. Developers are expected to accelerate new office projects, but market analysts believe demand for high-quality commercial space is likely to remain stronger than supply in the near future.
