Egypt Commercial Real Estate Market

Egypt Commercial Real Estate Market Size and Share:

The Egypt commercial real estate market size was valued at USD 11.28 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 32.57 Billion by 2033, exhibiting a CAGR of 7.72% from 2025-2033. The market is expanding due to urbanization, infrastructure projects, and rising foreign investments. Demand for office spaces, retail centers, and industrial properties is increasing, driven by economic reforms, business growth, and government initiatives, further supporting real estate development.

Urbanization, population growth, and mega-infrastructure projects are boosting the commercial real estate market in Egypt. For instance, according to industry reports, in 2024, the population of Egypt was estimated at 116,538,258, showing an increase of 1.75% from the previous year. Demand for modern office space, retail hubs, and mixed-use developments has been spurred by the government's New Administrative Capital and smart city initiatives. Cairo, Alexandria, and Giza's rapid urban expansion drive investments in commercial properties, and incentives from the government allure local and offshore investors. Furthermore, business districts and commercial zones increase the magnitude of business activities, which support economic expansion, positioning Egypt as a regional business hub.

Additionally, foreign direct investment (FDI), economic reforms, and e-commerce growth are fueling demand for office spaces, logistics centers, and retail properties. For instance, as per industry reports, Egypt’s foreign direct investments (FDI) surged by 998% in FY2023/2024, reflecting its growing appeal to global investors. Moreover, flexible workspaces and eco-friendly buildings are on the rise, reflecting the demand of corporates for smart, energy-efficient developments. Improvements in transport infrastructure, special economic zones (SEZs), and commerce accords further augment the commercial real estate industry. Furthermore, the increasing need for warehousing and distribution centers, fueled by growth in e-commerce and manufacturing, is propelling developers to invest in advanced industrial real estate solutions across strategic regions, strengthening Egypt commercial real estate market share in the logistics and industrial sectors.

Egypt Commercial Real Estate Market Trends: 

Rise of Smart and Sustainable Commercial Spaces

Egypt’s commercial real estate sector is shifting towards smart and sustainable buildings, driven by government policies, investor demand, and corporate sustainability goals. Developers are integrating eco-friendly designs, solar energy systems, and water reuse technologies to minimize environmental footprint and lower operational expenses. Moreover, LEED-certified office buildings and eco-friendly retail spaces are gaining popularity, which is acting as a crucial growth-inducing factor. Businesses are prioritizing green certifications to enhance brand reputation and attract eco-conscious tenants. For instance, in February 2025, Earth Development launched operations in Egypt, planning to invest EGP 30 Billion in sustainable and innovative real estate projects to support market growth and contribute to the country's expanding real estate sector. Furthermore, this trend aligns with Egypt’s Vision 2030 initiative, emphasizing sustainability and modern infrastructure in urban development.

Increasing Foreign Direct Investment (FDI) in Commercial Real Estate

Egypt’s commercial real estate market is attracting strong foreign investment, driven by economic reforms, infrastructure projects, and incentives for international developers. The government has eased ownership regulations for foreign investors, encouraging large-scale projects in business districts, retail centers, and logistics parks. The New Administrative Capital is a focal point for global investors, offering state-of-the-art commercial spaces and smart city infrastructure. Demand from Gulf investors, European firms, and multinational corporations is rising, further fueling market expansion. For instance, according to industry reports, it was estimated that GCC investments in Egypt’s real estate sector reached USD 115 billion in 2023. In line with this, approximately 60% of GCC nationals’ own property, and 94% of wealthy investors plan to expand their real estate holdings in Egypt. Besides this, Egypt’s strategic location and economic policies position it as a key commercial hub in the MENA region.

Expansion of Logistics and Industrial Real Estate

The rapid growth of e-commerce and manufacturing sectors is driving demand for logistics hubs, warehouses, and industrial parks in Egypt. For instance, as per industry reports, in 2024, Egypt's e-commerce sector played a role in the global expansion rate of 7.6%. Additionally, retailers, online platforms, and multinational companies are investing in distribution centers and fulfillment hubs near major cities like Cairo, Alexandria, and Suez to optimize supply chains. The government’s focus on special economic zones (SEZs) and improved transport infrastructure supports this trend, making industrial real estate a lucrative sector. Developers are constructing modern, high-tech warehouses with automated storage solutions, catering to the increasing demand for efficient, scalable logistics facilities across Egypt’s growing commercial landscape.

Egypt Commercial Real Estate Industry Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the Egypt commercial real estate market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type and end use.

Analysis by Type: 

• Rental
• Sales

The rental segment is driving Egypt's commercial real estate market, which sees intensifying need for office spaces, retail outlets, and warehouses. As businesses expanding, the demand for rental options is on the rise, with more emphasis on flexibility, especially within prime cities such as Cairo and Alexandria. Demand for Grade A office space and retail property is up, which is driven by multinational companies and domestic firms demanding access to key zones. Rental properties are increasingly favored by businesses that prefer short-term commitments and reduced upfront capital expenditure. This trend reflects Egypt’s broader economic development and urban growth.

Egypt's commercial real estate market by its sales segment is marked by significant demand for long-term investments in office buildings, retail centers, and industrial properties. High-quality commercial properties in strategic locations remain high on the radar of local and foreign investors. The country's developing infrastructure, increasing urbanization, and improving economic climate are drawing benefits for the sales market. Furthermore, real estate ownership offers substantial returns, especially in rapidly developing areas like New Cairo and New Administrative Capital. This segment continues to attract institutional investors, developers, and high-net-worth individuals seeking capital appreciation, supported by Egypt commercial real estate market growth and increasing infrastructure investments.

Analysis by End Use: 

• Offices
• Retail
• Leisure
• Others 

The office space is experiencing steady growth, driven by increasing demand from both local and multinational companies. Prime office spaces, particularly in central business districts like Downtown Cairo and the New Administrative Capital, are highly sought after. Businesses are focusing on Grade A office buildings that offer modern amenities, high-tech infrastructure, and flexible leasing terms. The trend of co-working spaces is also gaining traction, as companies opt for flexible arrangements to accommodate changing work environments and reduce overhead costs.

The retail segment is thriving, especially with the rise of shopping malls, high-street retail, and e-commerce integration. Egypt’s expanding middle class and growing consumer market are fueling demand for modern retail spaces, both in established cities like Cairo and new urban developments. Retailers are increasingly seeking spaces in malls that offer a mix of entertainment, dining, and shopping experiences to attract a wide range of consumers. Additionally, retail space is evolving to accommodate omni-channel retailing, with many retailers incorporating digital platforms into their operations.

The leisure segment is expanding as tourism, entertainment, and lifestyle developments continue to gain momentum. With Egypt’s rich cultural heritage and scenic destinations, there is increasing demand for resorts, hotels, entertainment complexes, and recreational facilities. The leisure sector is supported by government efforts to boost tourism and diversify the economy. As a result, investments in leisure properties are increasing, particularly in coastal areas like the Red Sea and Mediterranean coasts, along with luxury hotels and resorts in and around Cairo and the New Administrative Capital.

Regional Analysis: 

• Greater Cairo
• Alexandria
• Suez Canal
• Delta
• Others

Greater Cairo, that is, Cairo, Giza, and other adjacent regions, continues to form the epicenter of the Egyptian commercial property market. This represents the largest city and the economy of Egypt as it receives most of the investments in offices, retail stores, and apartment construction. Egypt is a leading commercial urban center of the country that hosts a big percentage of all office investment in the nation's retail malls, shopping centers, and other apartments. The Grade A office, the contemporary shopping malls, and mixed developments remain in demand within the precincts of New Cairo and Sheikh Zayed City. Greater Cairo is the economic center of Egypt, and infrastructure development is significant, offering prime locations for multinational companies and growing local businesses.

Alexandria, Egypt’s second-largest city, is a key market for commercial real estate, offering diverse opportunities across office, retail, and industrial sectors. With being one of the prime port cities in the region, Alexandria is currently witnessing more industrial real estate due to its warehousing and logistics centers. Region's larger population size with a rapidly expanding middle class plays a critical role in retail stores higher demand. Furthermore, due to its coastal nature, new projects along the coastline, particularly related to tourism, leisure, and mixed-used projects, continue to attract the interest of both investors and businesses.

According to the Egypt commercial real estate market forecast, the Suez Canal region is increasingly becoming a critical area for commercial real estate development due to its strategic location as a global trade and shipping hub. With the expansion of the Suez Canal and the development of the new Suez Canal Economic Zone, the region is seeing growth in logistics, warehousing, and industrial facilities. The demand for real estate in this region is primarily driven by international trade, manufacturing, and transportation companies. Additionally, there is increasing interest in mixed-use and residential developments to accommodate the growing workforce in this vital economic zone.

The Delta region, an agricultural and industrial heartland of Egypt, is seeing gradual growth in its commercial real estate market. Cities like Mansoura, Tanta, and Zagazig are witnessing rising demand for office spaces, retail outlets, and industrial facilities. As the government focuses on developing the region’s infrastructure and promoting industrial growth, the Delta is becoming an attractive area for both local and foreign investments. Egypt commercial real estate market analysis indicates that the market here is driven by industrial parks, logistics hubs, and affordable retail and office space, with a growing emphasis on supporting Egypt’s agricultural and manufacturing sectors.

Competitive Landscape: 

The commercial real estate market in Egypt is very competitive, being propelled by both local and international developers, massive government investments, and increasing foreign projects. For instance, in December 2024, the Egyptian government announced their plan to launch the Green Industry Program in the first quarter of 2025. This green initiative will provide USD 281.44 Million in funding to support the industrial sector. Multinational companies as well as commercial investors are attracted to the New Administrative Capital with high competition. Additionally, with an accelerated focus on economic reforms, infrastructure development, office spaces, retail hubs, and logistics centers gain momentum. Foreign direct investment (FDI) from Gulf and European markets has added growth to the momentum. Furthermore, developers are keen on positioning themselves differently through sustainability, smart buildings, and mixed-use developments. Besides this, growth in e-commerce is increasingly spreading requirement for state-of-the-art manufacturing and distribution hubs in key regions. 

The report provides a comprehensive analysis of the competitive landscape in the Egypt commercial real estate market with detailed profiles of all major companies, including:

• Amer Group
• Orascom Construction PLC
• Palm Hills Developments
• The Arab Contractors
• Talaat Moustafa Group
• Secon Egypt
• Dorra Group
• Emaar Properties
• Hassan Allam Holding
• Rowad Modern Engineering

Latest News and Developments: 

• In March 2023, Agility entered into a joint venture, "Yanmu," with Hassan Allam Utilities to build and operate state-of-the-art logistics parks and Grade A warehousing facilities in Egypt.
• In December 2024, LMD Egypt announced the launch of a 150-feddan project in New Zayed, Sheikh Zayed City, scheduled for early 2025. The development, located near Sphinx International Airport, will feature residential, hotel, commercial, and recreational spaces, with an EGP 10 billion investment.
• In December 2024, Emtelaak partnered with Uptown 6 October to enter the Egyptian market, introducing a new approach to property investment. This collaboration allows individual investors to purchase shares in commercial, residential, and administrative projects, expanding access to Egypt’s real estate market.

Egypt Commercial Real Estate Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Egypt commercial real estate market from 2019-2033. 
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Egypt commercial real estate market. 
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Egypt commercial real estate industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.