Demand for premium office space continued to support Cairo’s leasing market in Q2 2026. Meanwhile, a limited supply of Grade A offices remained a defining factor.

According to Knight Frank’s latest report, average office leasing rates reached USD 325 per square meter annually in the second quarter of 2026. While rents increased by only 2% in US dollar terms, continued depreciation of the Egyptian pound pushed local currency rents up by around 20% year over year. Grade A offices now command an 18.4% premium over Grade B stock, highlighting occupiers’ willingness to pay for higher quality space.

Why You Should Care

The report highlights how demand for higher-quality office space continues to influence Cairo’s commercial real estate market. As Grade A supply remains limited, occupiers are placing greater emphasis on workspace quality, while landlords and developers are adapting their leasing and delivery strategies to meet changing tenant requirements. These trends provide insight into how the city’s office market is evolving as businesses reassess their workplace needs. 

The Details

Demand for Grade A office space has remained resilient despite limited availability. According to Knight Frank, Grade A offices now lease at an average of USD 335.6 per square meter per year, an 18.4% premium over Grade B space. The report says this reflects occupier preference for higher quality offices and the constrained supply of premium developments.

New Cairo continues to account for the largest share of Cairo’s office market, with 44 of the city’s 77 active office developments. Business parks in New Cairo and West Cairo also recorded some of the highest leasing rates during the quarter.

Occupier requirements are also evolving. According to Knight Frank, parking availability has become a more prominent consideration in leasing decisions, prompting some businesses to relocate to buildings with higher parking capacity. At the same time, serviced office operators continue to expand as flexible workspaces become part of longer-term occupancy strategies for some companies. 

The Ripple

The report also points to broader shifts across Cairo’s commercial real estate market. The report indicates that these market conditions extend beyond leasing activity. Developers have continued to lengthen installment periods for office sales, with average payment plans increasing from 4.6 years for projects completing in 2026 to 9.7 years for developments scheduled for delivery in 2030. 

Knight Frank also found that while 47 developers are active across 77 office schemes, a relatively small group of companies accounts for much of the future pipeline, suggesting that new supply remains concentrated among established developers. 

What to Watch

The pace of new Grade A office deliveries will remain an important indicator for Cairo’s office market over the coming quarters. According to Knight Frank, the balance between new supply and occupier demand will continue to influence leasing activity, rental performance, and office development across Greater Cairo.