82% rise in Cairo office supply expected by 2029

• Development pipeline will give Cairo 82% more offices by 2029, taking the total stock to 1.82 million sqm
• New Cairo leads the market with office stock projected to reach 1.33 million sqm by 2029
• Developers backing growth with longer instalment periods and lower down payments

Cairo, Egypt | 20 July 2025: Cairo's office market is experiencing rapid expansion, with new developments set to increase stock by 82% by 2029, according to the latest Cairo Offices Market Review from global property consultancy Knight Frank. The development push comes as office rents and sale prices rose across the city in the first half of 2025.

Faisal Durrani, Partner – Head of Research, MENA, Knight Frank said: “Cairo’s current office stock stands at 1 million sqm, with an additional 818,000 sqm slated for delivery by 2029. This represents an 82% growth in the office market and reflects Cairo's growing economy and its increasing appeal as a regional business hub, attracting both local enterprises and international corporations.”

Cairo’s office market performance is also highlighted in Knight Frank’s upcoming Africa Office Market Dashboard H1 2025, which tracks trends across 29 African cities. The Egyptian capital is ranked among the continent’s top-performing office markets, second only to Lagos in terms of prime rents.

New Cairo is a clear leader in this expanding market. Accounting for 73% of Cairo’s current and future office stock, it commands the highest values across the board. The average sales price in New Cairo reached EGP 274,000 psm in H1 2025, with premium office spaces selling for as much as EGP 466,000 psm. Its appeal is bolstered by modern construction standards, ample parking provisions, and strategic proximity to the New Administrative Capital and Cairo International Airport.

Durrani added: “New Cairo’s dominance extends to the office leasing sector, where New Cairo recorded the highest rents and year-on-year growth exceeding 2%. This consistent performance cements its position as the city’s premier destination for businesses seeking prime, well-connected office locations that offer both prestige and functionality.”

Flexible office operators such as MQR, KAPITALIZE, KMTHouse, CO-55, and Regus are actively expanding in the area, while the International Workplace Group (IWG) has announced plans to grow its local footprint from 18 to 150 locations by 2030.

Developers are playing a pivotal role in facilitating investment and driving market growth with extended instalment durations and reduced down payments. For projects set to deliver in 2025, the average payback period was 4.4 years, increasing to 7.8 years for projects completing in 2029.

This extended payment flexibility is a crucial incentive, designed to make investment more accessible and attractive to a wider range of businesses and investors by easing the financial burden and encouraging long-term commitments to the market. This proactive approach by developers is fostering a more liquid and dynamic investment environment.

Zeinab Adel, Partner – Head of Egypt, Knight Frank said:  “Real estate investment is growing across the MENA region and Cairo offers a more affordable option than other nearby GCC markets. These lower barriers to entry for GCC and international investors are helping to fuel further growth, while the longer instalment periods offered by developers not only encourage investment, but also highlight the increasing confidence in the market’s sustained growth.”

COMPELLING ALTERNATIVE

While New Cairo leads, West Cairo is emerging as a compelling alternative, offering diverse opportunities for businesses and investors looking for strategic locations outside the primary hub. El Sheikh Zayed presents a strong option, with average sales prices of EGP 229,000 psm, making it an attractive choice for companies seeking modern facilities in a rapidly developing area. For those seeking a more accessible entry point into the market without compromising on quality, 6th of October City is also likely to appeal, with average prices around EGP 171,000 psm.

Adel continued: “El Sheikh Zayed, 6th of October City and West Cairo offer distinct advantages, including proximity to residential communities and a growing commercial ecosystem, making them viable alternatives for businesses expanding or relocating within Cairo.

“New Cairo offices command the city’s highest average prices thanks to the area’s modern infrastructure, strategic location and the concentration of high-profile businesses and amenities. However, when you look at the maximum sales prices achieved, the gap between New Cairo, El Sheikh Zayed and 6th of October City narrows, suggesting compelling opportunities exist for investors looking for a more accessible entry point into the Cairo market.”

FUTURE PIPELINE

Following a slight dip in supply in 2026, the market is poised for sustained growth in subsequent years. Supply is projected to peak in 2028, reaching 309,000 sqm and accounting for approximately 38% of the total future pipeline through to 2029. This growth underscores ongoing developer confidence and the robust underlying demand driving Cairo's office market.

Leading developers such as LMD, The Waterway Developments, Centrada Developments, La Vista Developments, SERAC Developments and SODIC are actively contributing to this expansion, with multiple projects underway across the key districts. Their strategic investments are not only adding to the inventory but also enhancing the overall quality and diversity of office spaces available.

Adel concluded: “These developments are collectively shaping Cairo's urban landscape, reinforcing its status as a thriving business hub in the region and a magnet for both domestic and international investment. Our research paints a picture of a market in full swing, characterised by strong fundamentals, strategic developer initiatives and a promising outlook for continued growth and investment, solidifying Cairo's position on the global business stage.”