“JLL“, a leading global real estate consultancy and investment company, released its new report on the performance of Cairo’s real estate market during the second quarter of 2026. The report noted that the market showed structural resilience in the second quarter of 2026, as continued institutional investment helped move the sector forward despite regional uncertainty and local affordability constraints, Invest-Gate reports.
Despite the impact of macroeconomic dynamics and upcoming new projects on short-term performance indicators, long-term market confidence remains strong. This optimism is based on major investments in the residential sector, infrastructure-driven tourism growth, the fast shift toward interactive retail formats, and the strategic move toward integrated commercial assets focused on lifestyle.
Ayman Sami’s Comments
Ayman Sami, Head of JLL Egypt, said: “The performance dynamics of Cairo’s real estate market during the second quarter show a market going through a transition. However, the fundamentals remain strong over the long term, supported by continued institutional investments from leading real estate developers with large capital reserves. As the government moves forward with billions of dollars in tourism infrastructure projects, long-term value is being given priority over short-term gains. This continued investor confidence in the Egyptian real estate market is helping prepare it to continue growth and innovation across all asset classes.”
Infrastructure Investments Support the Hospitality Sector for Sustainable Growth
Cairo’s hospitality sector has positive long-term prospects, supported by major investments in infrastructure, the expansion of financing channels, and improved air connectivity. The sector’s resilience comes from proactive government measures, including stronger aviation incentives, along with competitive discount packages offered by hotel operators to maintain their market appeal.
Despite regional uncertainty, Egypt received around 9 million international visitors in the first half of 2026, an increase of 4% year-on-year. Total room supply increased to 29,200 rooms, with 1,277 rooms expected to enter the market by year-end. With 3,500 rooms planned to be added in 2027, Cairo’s strong upcoming projects are in line with the government’s goals to significantly expand capacity by 2031.
Seasonal dynamics and regional sentiment led to a 3.3 percentage point decrease in occupancy rates to 62.4%, while average daily rates remained resilient, increasing by 0.6%.
Tourism Infrastructure Development
With the rapid development of tourism infrastructure, the sector is well positioned to absorb expected demand growth. This growth is supported by the integrated master plan being implemented by the Ministry of Tourism and Antiquities to develop the area extending from Sphinx International Airport to the Dahshour Link, the commitment of “Orascom Pyramids Entertainment” to invest USD 41 million in developing and upgrading visitor services in the Giza Pyramids area and around the Grand Egyptian Museum, and the expansion of Cairo International Airport at a cost of USD 3.5 billion, which aims to increase capacity from 40 million to 70 million passengers annually.
Accelerating the Adoption of Office Environments Based on the “Live, Work and Play” Concept
Cairo’s office sector saw the addition of approximately 96,200 square meters of gross leasable area during the second quarter of 2026, bringing total supply to 2.99 million square meters, with another 289,300 square meters expected to be added by year-end.
Office demand remained strong as local companies upgraded their offices to Grade B, moving away from informal residential offices, while some new international companies explored Grade A offices in Cairo. Competition within the Grade A sector is expected to increase, gradually leading to lower prices.
The citywide average vacancy rate increased in the second quarter of 2026 to 9.4%, compared with 7.6% in the second quarter of 2025. Despite a 0.8% decline in asking rents for Grade A offices, premium office rents recorded a slight increase of 0.4% year-on-year and are expected to remain stable in the short term.
Innovative Strategies to Differentiate Office Offerings
To maintain competitiveness, property owners are adopting innovative strategies to differentiate their offerings within Cairo’s evolving urban model that combines living, working and entertainment. The market’s first branded office concept combines hospitality, high-end design and modern amenities, including valet parking, concierge services, fitness centers and leisure environments, pointing to a clear shift in tenant expectations toward complete work experiences.
Continued Regional Investor Confidence Supports the Residential Sector
With 4,500 residential units delivered in the second quarter, Cairo’s real estate sector expects another 29,500 units to be delivered by year-end, as a new wave of development projects in the New Administrative Capital and Mostakbal City is scheduled for completion.
Sales prices recorded slight quarterly increases of 2.8% in 6th of October and 2.4% in New Cairo. At the same time, increasing affordability pressures led to higher demand in the rental market, raising prices by around 7% year-on-year in both submarkets.
More Flexible Payment Structures
To ease affordability constraints, developers are applying more flexible payment structures. The common dual-pricing model includes extended payment plans to maintain the listed price, along with immediate discounts for buyers who choose accelerated payment plans.
Investor Confidence in East Cairo
Market fundamentals remain strong over the long term in the capital, supported by continued institutional investments from leading real estate development companies. The recent announcement of a USD 3.1 billion mixed-use project on an area of 553 feddans in East Cairo, developed by “Majid Al Futtaim” in partnership with “Madaar”, is clear evidence of this confidence. This major investment strengthens East Cairo’s position as a key destination for foreign capital inflows.
Interactive Approaches Help Drive Momentum in the Retail Sector
Cairo’s retail market benefited greatly from summer promotional campaigns and shopping festivals, leading to higher footfall and transaction volumes across different shopping destinations. The entertainment sector remained the most active, alongside shopping and food and beverage sectors.
The sector has seen a gradual recovery, achieving stronger performance in the second quarter compared with the same period last year. Rental prices remained stable quarter-on-quarter, with growing momentum in premium segments, as average rents for luxury units increased by 1.4% annually, while rents for major and regional shopping centers jumped by 3.6%. The retail sector added around 42,700 square meters of gross leasable area in the second quarter of 2026, bringing total available space to 3.48 million square meters.
Special Leasing Methods and Increasing Visitor Traffic
As local and international brands continue to expand in Cairo, property owners are increasingly adopting special leasing methods to balance profitability pressures with the need to attract high-performing tenants and increase visitor traffic. Recognizing the investment required to secure high-quality key tenants, property owners are increasingly relying on revenue-sharing models, which may exceed 15% in some cases.