Why Administrative Offices Are Outperforming Residential Real Estate in Egypt
Explore why administrative office spaces are delivering stronger rental yields and long-term returns compared to residential properties in Egypt’s current economic landscape.
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2/22/20261 min read
Over the past few years, administrative offices have increasingly outperformed residential units in several key performance indicators.
1. Higher Rental Yields
Residential yields in Egypt average between 4%–6% annually.
Administrative offices, however, often achieve 7%–10% annually, particularly in prime locations.
2. Stronger Tenant Stability
Office tenants typically:
Sign longer contracts
Invest in fit-outs
Maintain units professionally
This reduces turnover risk compared to residential tenants.
3. Inflation Hedge
With currency fluctuations and rising construction costs, commercial real estate has become a preferred hedge against inflation. Investors are shifting toward income-generating assets instead of speculative residential holding.
Projects such as:
East Side New Cairo
Mostakbal City
have attracted investors seeking diversified commercial exposure.
4. Business Ecosystem Growth
Egypt’s SME sector is expanding, and startups increasingly prefer independent office addresses over co-working spaces as they scale.
This structural demand supports long-term growth for administrative properties.