Educational facilities are becoming an integral part of new real estate developments as demand grows for integrated communities that combine housing, services, and lifestyle. Schools have shifted from being a secondary amenity to a central pillar of project design, directly influencing buyer decisions and property values, Savills Egypt Strategic Consultancy head Rania Nazmi told EnterpriseAM. Developers now see educational components as critical to both sales performance and long-term community appeal.

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Quality, rather than proximity, is what ultimately shapes decisions for families buying into new developments, Knight Frank Egypt Partner and Country Head Zeinab Adel told us. For the majority of homebuyers, the choice of compound follows the choice of school, not the other way around. A good school within a compound has become one of the most powerful differentiators for developers looking to stand out — and a key reason for buyers to commit, she added.

Families are willing to pay a premium rate to live near respected schools, turning educational facilities into a strategic driver of demand and a central part of modern masterplans, Adel told us. However, a gap persists, particularly in new areas like the new capital, where projects are still in planning and schools lag behind housing supply, she added.

Real estate developers are increasingly viewing schools as an anchor for residential projects. A reputable school can raise unit prices by 15-25% due to the increased convenience, safety, and lifestyle benefits families associate with having a high-quality institution nearby, Uptown 6th of October CEO Moataz Shaarawy told EnterpriseAM. Buyers perceive these schools as core assets that deliver both lifestyle convenience and long-term investment value. As a result, schools have evolved from being an optional extra to a defining feature that drives sales performance and project differentiation, he added.

The presence of schools in compounds not only boosts sales but also strengthens community ties, Shaarawy said. Developers are increasingly incorporating schools into their master plans from the earliest stages of design. Leading developers now view education as central to community-building, with the “integrated community” model — combining residential, educational, healthcare, and recreational services — becoming the standard, Shaarawy said.

Industry players agree on this: Madinet Masr CEO Abdallah Sallam echoed the sentiment, noting that his company places education at the heart of its developments as part of a holistic vision to create sustainable communities that combine learning, wellbeing, and quality of life. This community dynamic supports sustained occupancy and helps preserve property values over time, he explained.

Integrating schools into real estate projects requires carefully balanced investment models that spread risk and ensure sustainability. The ideal structure sees the developer owning the land and managing the initial construction, followed by a long-term investor acquiring the educational asset and appointing an experienced operator, Nazmi said. This three-way model allows developers to generate returns more quickly, while investors and operators handle the longer payback cycle typical of educational ventures.

Developers often offer strong incentives to secure top-tier educational partners, as schools are capital-intensive and take years to reach full capacity, Shaarawy said, adding that these can include preferential land rates, contributions to construction costs, or guaranteed student enrollment from within the compound. Similarly, Sallam explained that developers typically provide land and infrastructure while the school partner handles development and operations, creating a mutually beneficial relationship that aligns both parties’ goals.

A well-known school brand adds significant prestige and marketing power to a residential project. International operators play a vital role in attracting reputable educational names, which enhances both investor confidence and the overall reputation of the development, Nazmi said. The tier of a compound is now largely determined by the kind of school brand it hosts — whether mid-tier or premium — as it directly reflects the project’s positioning and target market, CIRA Education Chief Communications Officer Alyaa Said told EnterpriseAM.

Partnerships between schools and developers often follow long-term contractual arrangements — sometimes lasting up to 90 years — to secure investment stability, Said told us. Schools may rent land from developers or share earnings, with most revenues going to the education operator, while developers benefit from higher property values and increased demand. This approach ensures that both sides see the collaboration as a strategic investment rather than a short-term transaction.

These partnerships offer mutual benefits, where developers gain a valuable anchor amenity that enhances sales, while schools enjoy access to a built-in population base and modern infrastructure. For developers, the integration of a reputable educational institution helps sustain property values and community appeal. For schools, location within a large, secure residential compound guarantees a consistent pool of potential students. As Said noted, even before the school year began, CIRA’s newly launched national school in Gardenia compound reached full capacity within months — underscoring the strong demand from residents seeking convenience and lower transport costs.

While schools inside compounds are often more exclusive, developers and operators agree that maintaining openness to the surrounding community is crucial for long-term success. Sallam said that Madinet Masr’s schools in Taj City and Sarai welcome students from across New Cairo, emphasizing that education should serve the wider community. Shaarawy made a similar point, explaining that while children of residents often receive enrollment priority, sustainable schools maintain a balance by reserving seats for students from nearby areas to ensure diversity and full capacity.

How do schools remain competitive? Said and other industry insiders noted that true competitiveness comes not from having multiple schools in one compound, but from offering a range of educational systems — British, American, German, or national — catering to different preferences. This variety ensures that parents retain real choice even within a single development. Some worry that having only one school in a compound could create a captive market, but developers insist that reputational and contractual mechanisms keep standards high. Shaarawy said developers include performance indicators and joint monitoring committees in agreements, since poor school performance would reflect negatively on the entire project. Sallam added that partnering with well-established brands with strong academic track records ensures that quality and innovation remain central.

Despite growing demand, educational projects remain capital-heavy, with high construction and operational costs limiting new openings. Savills’ Cairo Property Report 2025 found that demand still outpaces supply, particularly for mid-priced schools, while only around 7% of Greater Cairo households can afford current private school fees. Nazmi said the financing gap between land-owning developers and investors willing to fund schools continues to slow implementation, despite clear market appetite.

To address this, new financing models — including phased construction and hybrid investment frameworks — could help make educational projects more financially viable while ensuring social impact, Savills Egypt Operations Head Sherine Badreldine told EnterpriseAM. These structures would allow developers to integrate schools earlier in their project lifecycles, accelerating both community development and occupancy rates.

Your top education stories for the week:

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