Cairo's real estate market kicked off 2025 with solid momentum, showing robust activity across residential, office, retail, and hospitality segments, according to The Cairo Real Estate Market Dynamics – Q1 2025 report. Residential Sector
Approximately 7,500 new residential units were delivered in Q1, bringing Cairo's total housing stock to around 301,100 units. Most upcoming completions—estimated at 28,500 units by year-end—are concentrated in East Greater Cairo.
Although growth has eased from the triple-digit surges of 2024, market activity remains healthy. A stabilizing exchange rate and a sharp decline in inflation to 13.6% as of March 2025 have contributed to this normalization.
Property sales prices in 6th October and New Cairo increased by an average of 89.4% year-on-year, while rental rates rose 90.2% and 88.2%, respectively. A growing trend has seen more prospective buyers opting to rent in high-end neighborhoods previously beyond their purchasing power. This shift is encouraging landlords to lease rather than sell, bolstering the rental market and enhancing investment returns.
Office Sector
The office market expanded by roughly 10,500 sqm of leasable space in Q1, raising Cairo's total office inventory to approximately 2.2 million sqm. An additional 615,300 sqm is expected to be completed by the end of the year.
Grade A office vacancies declined to 8.6%, down from 10.9% in the previous quarter. Rents rose year-on-year by 4.7% for Grade A offices and 2.9% for Prime spaces. Limited availability of high-quality stock kept landlords in a strong negotiating position. Parking availability has become increasingly important in lease discussions, driving developers to incorporate podium parking in new projects.
Retail Sector
Cairo's retail market added 27,000 sqm of gross leasable area (GLA) in Q1, increasing total retail stock to 3.22 million sqm. Most of this growth occurred in New Cairo and the New Administrative Capital, with expansions in business parks, malls, and community centers.
Vacancy rates fell to 7.2%, down from 9.2% a year earlier, as improved footfall and tenant demand supported performance. Outdoor, community-focused retail formats—especially those centered on F\&B and entertainment—outperformed traditional malls. Rental rates rose across the board, with super-regional malls seeing a 7.4% annual increase and community malls registering an 11.4% uptick. Despite higher rents, landlords continued to offer leasing incentives such as rent abatements and capital expenditure contributions.
Hospitality Sector
The hospitality sector saw the addition of approximately 870 hotel keys in Q1, following the openings of Hilton Cairo Nile Maadi and Sofitel Cairo Downtown Nile. This brings Cairo's total hotel stock to about 27,800 keys.
While occupancy slipped slightly by 0.7% year-on-year through March, average daily rates (ADR) rose sharply by 30.5%, driving a 29.1% increase in revenue per available room (RevPAR). These gains signal strong pricing power and sustained recovery in tourism, especially in the upscale and luxury segments.
Market Outlook
Cairo's real estate market in Q1 2025 demonstrated resilience and adaptability, with each sector effectively navigating evolving economic conditions and shifting consumer preferences.
