Egypt’s residential property market is offering varied rental returns across its major cities, with Cairo emerging as the stronger market for investors seeking rental income. The country’s average gross rental yield reached 7.68% in the fourth quarter of 2026, up from 7.47% in the second quarter, according to Global Property Guide.
The latest figures point to considerable differences between neighbourhoods and apartment sizes. While some areas of Cairo report double-digit gross yields, Alexandria’s returns are comparatively modest, particularly for larger apartments. The gap highlights how location and property type can shape rental income in Egypt’s housing market.
Gross rental yield measures annual rental income against a property’s purchase price before expenses such as taxes, maintenance, ground rent and estate agent fees. Global Property Guide estimates that net yields are typically 1.5 to 2 percentage points lower.
Cairo leads on rental returns
Cairo recorded an average gross rental yield of 10.86%, significantly higher than Alexandria’s average of 4.49%, according to the report. The capital’s returns varied by location, with smaller apartments generally offering stronger yields in several markets.
Across Cairo as a whole, studios recorded a gross rental yield of 13.17%, while one-bedroom apartments returned 13.14%. Two-bedroom apartments delivered 10.27%, followed by four-bedroom and larger units at 8.97%. Three-bedroom apartments recorded a yield of 8.76%.
The figures suggest that smaller homes can generate higher rental returns relative to their purchase prices. However, the yield alone does not establish how easily a property can be rented or resold, and actual returns depend on occupancy, expenses and local demand.
Mohandessin stood out among the locations covered in the report. Two-bedroom apartments there recorded a gross rental yield of 14.33%, the highest listed for that property type across the examined locations. Four-bedroom and larger apartments returned 10.16%, while three-bedroom units yielded 9.96%.
The figures indicate that investors looking for rental income may find substantial differences even within the same city. Purchase prices and achievable rents can vary sharply between neighbourhoods, making location-specific comparisons important.
New Cairo offers varied returns
New Cairo also reported relatively strong yields across several apartment categories. Studios recorded a gross yield of 11.74%, while one-bedroom apartments returned 9.32%. Two-bedroom units yielded 8.71%, and three-bedroom apartments recorded 8.69%. Four-bedroom and larger properties returned 8.45%.
In contrast, yields in other parts of the capital were more mixed. In 6th of October, one-bedroom apartments recorded a gross yield of 4.20%, compared with 5.13% for two-bedroom homes and 7.14% for three-bedroom apartments.
Sheikh Zayed reported yields ranging from 5.96% for one-bedroom apartments to 7.72% for two-bedroom units. In Heliopolis, two-bedroom apartments returned 5.30%, while three-bedroom and four-bedroom or larger units yielded 5.18% and 4.03%, respectively.
These differences show why citywide averages can conceal variations between individual markets. An investor assessing a property needs to consider its purchase price alongside the rent it can realistically command.
Alexandria records lower yields
Alexandria’s residential market delivered lower gross rental yields across the apartment categories listed in the report. Two-bedroom apartments recorded a yield of 5.58%, while three-bedroom units returned 4.19%. Four-bedroom and larger apartments recorded the lowest yield, at 3.71%.
The city’s average gross rental yield stood at 4.49%, less than half Cairo’s reported average of 10.86%.
The comparison offers a useful snapshot of the differences between Egypt’s two major urban property markets. However, rental yield is only one measure of investment performance.
Property appreciation, maintenance costs, vacancy periods and the ease of finding tenants can all affect the final return.
Gross yields do not tell the whole story
For investors, Egypt’s latest rental figures offer a starting point rather than a guarantee of returns. The distinction between gross and net yield is particularly important: the reported percentages do not account for taxes, repairs, ground rent, agency fees or other ownership costs.
A property with a high gross yield may therefore deliver a considerably lower net return once expenses are deducted. Investors also need to assess the local rental market and the sustainability of advertised rents before making a purchase.
With Egypt’s average gross rental yield rising to 7.68% in Q4 2026, the latest data points to opportunities across selected residential markets. Cairo leads on reported rental returns, while Alexandria records lower yields. The difference reinforces a central consideration for property investors: the location, size and purchase price of a home can matter as much as the broader market in determining its income potential.
