Cairo office rents jump 20% as demand outpaces supply of Grade A space

Cairo’s office market continued to tighten in 2Q 2026, with average rents rising 20% y-o-y in EGP terms as a shortage of Grade A space handed landlords greater pricing power, according to the latest report (pdf) from property consultancy Knight Frank. Market-wide average asking rents stood at USD 325 per sqm annually — a modest 2% rise in USD terms, but a far sharper gain in local currency on the back of the weaker EGP.

Demand tilts toward premium: Companies continue to prioritize modern developments despite higher costs, leaving Grade A buildings at an 18.4% pricing premium over older Grade B stock (USD 335.60 vs USD 283.50 per sqm annually). Grade A business parks command even more — USD 348 per sqm in New Cairo and USD 354 in West Cairo. New Cairo remains the focal point, hosting 44 of the city’s 77 active office developments, while tenants increasingly weigh parking availability and move-in-ready space when choosing premises.

Flex goes permanent: Serviced and flexible office space is shifting from a temporary swing solution to a permanent, headquarters-grade option for major international occupiers, Knight Frank says. Recent commitments show the scale of the move: Swiss-based IWG’s Spaces brand took around 16k sqm at The Ark Business Park, while two other operators each secured roughly 7k sqm — at Eastmain by Mobco and UBL by Tameer.

Longer payment plans: Developers are adjusting to weaker purchasing power with progressively longer installments — from 4.6 years for units delivering in 2026 to 9.7 years for 2030 completions. Meanwhile, more landlords are cutting tenants’ upfront fit-out costs, handing over partially finished (CAT-A white box) offices or spreading customization expenses over the lease to attract multinational occupiers.

On the sales side: Prices vary widely by district. Downtown Cairo is the most accessible entry point at an average EGP 67k per sqm, while New Cairo and El Sheikh Zayed are at mid-market levels of EGP 182-184k. New Zayed is the most expensive citywide, at more than EGP 206k per sqm, while 6th of October shows the widest spread — EGP 70k to 325k per sqm — reflecting variation in product quality rather than genuine pricing power.

IN CONTEXT- While the consultancy’s report captures the top-line market data, we reported last year on the deeper structural reality driving the Grade A supply squeeze. Developers spent years chopping office projects into small units for quick retail liquidity, creating a void for multinational corporates that actually need more floor space under one roof — including those chasing a share of the country’s growing business process outsourcing market. The market needs roughly 9.5 mn sqm of office space annually, against a supply of just 2.5-3.2 mn sqm, Bonyan CEO Tarek Abdel Rahman told us last year. The market is also bracing for the impending 14% VAT on leased admin spaces, which threatens to eat into the sector’s 8-10% rental yields and could cool future investment demand.