Egypt’s office and administrative real estate market is shifting as the gap between supply and demand widens. Local and international companies are showing more interest in high-quality and flexible workspaces. While developers and office space providers are ramping up expansions, the market still faces structural challenges related to development patterns, space size, and evolving post-pandemic work preferences.

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The race to expand office supply in Cairo is underway, but developers are facing challenges. The market is seeing a shortage of large, premium grade A spaces and a shifting demand toward flexible and hybrid models. Still, the broader trend points to a reshaped office landscape in Egypt, fueled by the entry of global players like IWG, growing Gulf investment, and Cairo’s rising appeal as a regional business hub.

There’s a clear mismatch between available administrative space and actual demand, Savills Egypt Head of Strategic Consulting Rania Nazmi told EnterpriseAM. Most new projects focus on small units, while multinational companies are seeking large grade A spaces with advanced operational standards, she said.

The rush by many developers to sell smaller units to individual investors for quick liquidity has created a structural imbalance, Savills Egypt Operations Director Sherine Badr El Din told us, adding that small offices are oversupplied, while large spaces are hard to find. Global firms entering Egypt need offices three to five times larger than those in Dubai or Riyadh, but the local market still struggles to meet that demand, Savills Egypt Country Head Catesby Langer-Paget told EnterpriseAM.

Egypt’s office market is seeing strong momentum, with total Cairo supply expected to grow 82% by 2030 to reach 1.82 mn sqm. The growth reflects Egypt’s expanding economy and Cairo’s position as a regional business hub, he said. Corporate priorities are also shifting from location to quality, with grade A spaces now seen as key to attracting and retaining talent, Knight Frank Head of Research for MENA Faisal Durrani said. Premium office rents across Cairo’s prime districts are also converging as competition for top-tier space intensifies, he added.

New Cairo dominates the market with around 1.33 mn sqm of existing and upcoming supply — the highest among Cairo districts — with an average selling price of EGP 274k per sqm in 1H 2025, according to Knight Frank. Other areas are catching up, with Sheikh Zayed averaging EGP 229k per sqm, and Sixth of October at EGP 171k per sqm. The narrowing price gap suggests the market is focusing less on location and more on quality, Durrani said.

Egypt’s administrative real estate sector has become the second-most attractive for Gulf investors, with interest rising to 49%, double the 2023 figure, Knight Frank found. It’s also the top choice for Saudi investors at 63%. This interest is being driven by Egypt’s rapid rise as a regional outsourcing hub, thanks to operating costs being 50-60% lower than in Europe and the US, and a pool of multilingual talent, Durrani said.

Flexible workspace providers have become central to Cairo’s office ecosystem, Nazmi said. Shared offices are helping bridge part of the market gap and are proving to be popular with SMEs and even some global firms seeking flexibility without long-term commitments. Egypt has become one of IWG’s fastest-growing markets globally, expanding from ten centers to over 30 in less than two years, IWG Regional Director Marc Descrozaille told EnterpriseAM. The group is investing heavily in Egypt based on its economic potential and the strong shift toward flexible work, he added. However, Egypt still faces a “clear gap” between supply and demand, especially in the small and mid-sized segments favored by entrepreneurs, IWG Senior Vice President for Africa and the Middle East Kory Thompson told EnterpriseAM. IWG is also planning to open its largest center globally in Egypt, spanning 17k sqm on South 90 Street in New Cairo before the end of this year, he added.

IWG’s expansion is built on partnerships with local developers, allowing rapid scaling while maintaining global standards, IWG Egypt CEO Youssef Naguib said. The model supports the company’s plans to expand to the new capital, North Coast, El Gouna, Alexandria, and Upper Egypt, Naguib said. Tech, finance, and outsourcing firms are the main drivers of demand for IWG’s spaces in Egypt, with outsourcing jumping into the top three sectors last year, he added. IWG’s expansion into new cities aims not only to meet existing demand but also to build awareness and shape future demand, Thompson said. Being early in the market is key to success, he added. Descrozaille said IWG’s goal is to offer flexible work solutions in every Egyptian city so that entrepreneurs and companies can find suitable, affordable space anywhere in the country.

Tabarak Holding is among the local developers adapting to the shift, Chairman Ali Al Shorbany told EnterpriseAM. The company is focusing on flexible, hybrid, grade A offices designed near major transport hubs and airports, with short-term leasing options for firms seeking operational agility.

Real estate investment funds could help ease the shortage of large administrative spaces by acquiring assets and leasing them to major tenants, Badr El Din said. Premium office space in Cairo remains competitively priced at USD 723 per sqm per year, she noted. Knight Frank’s Head of Project Services Moataz Mosallam expects the market to move toward sustainable offices that prioritize employee wellbeing and energy efficiency. Developers should focus on smart design and flexibility as key differentiators, he added.

At the 2025 EnterpriseAM Egypt Forum, real estate and tech leaders agreed that adaptability will define the next decade. Cities are shifting toward mixed-use projects that integrate living, working, and leisure, while culture and wellbeing are reshaping younger generations’ priorities. Experts said AI will redefine jobs and skills but won’t replace human creativity or interaction. Instead, it will make them more valuable. With more local opportunities, Egyptian talent abroad could begin returning home. Urban districts such as Downtown Cairo may also see a revival that blends history with innovation.

Your top infrastructure stories for the week:

  • Mostakbal Misr Agency for Sustainable Development is preparing to offer 5k feddans to investors for logistics zone development, with infrastructure work already underway to link the areas to key ports via the existing road network.
  • The Egyptian Bioethanol Company signed a USD 135 mn loanagreement with seven banks to build Egypt’s first bioethanol facility in Damietta, which will produce 100k tons annually from sugar beet molasses.
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