How to Calculate Real Estate Return on Investment in Egypt: Complete Guide

BrokerJoin Editorial Team · 2026-06-04

One of the most common mistakes Egyptian property investors make is buying based on gut feeling — a developer's glossy brochure, a friend's recommendation, or excitement about a new area — without running the numbers. This guide gives you the exact formulas and benchmarks you need to evaluate any real estate investment in Egypt objectively.

The Two Key Returns to Calculate

1. Rental Yield

Rental yield measures income return as a percentage of the property's value.

Formula: Annual Rent ÷ Property Value × 100 = Gross Rental Yield

Example: You buy a 120m² apartment in Nasr City for EGP 2,400,000. You rent it for EGP 12,000/month (EGP 144,000/year).

Gross Rental Yield = 144,000 ÷ 2,400,000 × 100 = 6%

For net yield, subtract annual costs: maintenance (1–2% of value), property management (5–10% of rent), vacancy periods (estimate 1 month/year):

Net Yield = (144,000 – 48,000 – 14,400 – 12,000) ÷ 2,400,000 × 100 = 2.9%

Egyptian Benchmarks: Cairo city 4–7% gross, North Coast 8–14% gross (seasonal), Alexandria 5–8% gross.

2. Capital Appreciation

This is the increase in property value over time.

Formula: (Sale Price – Purchase Price) ÷ Purchase Price × 100 = Capital Gain %

Egyptian Context: Egyptian real estate has historically appreciated 15–30% annually in EGP terms, largely tracking inflation. In USD terms, appreciation has been more volatile due to currency movements.

Real example: Apartment purchased in New Cairo in 2020 for EGP 1,200,000. Same apartment worth EGP 3,800,000 in 2026. That is a 217% gain in EGP, but in USD only 8% (due to currency devaluation).

Key insight: If protecting dollar value is your goal, focus on dollar-indexed coastal properties or areas with high foreign buyer demand.

Total Return Formula

Total 5-Year Return = Cumulative Rental Income + Capital Gain

For the Nasr City example above:

• 5 years rental income (net): EGP 348,000
• Capital gain (assume 20%/year EGP): EGP 1,200,000 → EGP 2,985,984
• Capital gain amount: EGP 1,785,984
• Total 5-year return: EGP 2,133,984 on EGP 2,400,000 investment = 88.9% return

When NOT to Buy

• Developer pricing above market resale value by >20%
• Gross rental yield below 4% in Cairo or 6% on the coast
• No clear exit strategy (illiquid area, no established secondary market)
• Buying in areas with oversupply (too many similar units being built)

Work with a Verified Broker

A good broker will run these numbers with you, show you actual comparable rental data, and help you negotiate the best price. On BrokerJoin, all brokers are identity-verified and rated by past clients — so you can choose with confidence.