• Home
• Business

Determining the fair price of an apartment in Egypt requires more than checking the asking price per square metre advertised by a seller or property developer. Buyers need to assess comparable properties, location, finishing quality, building condition, available services, legal status and payment terms. These factors can produce substantial price differences between neighbourhoods in Cairo and other Egyptian governorates, as well as between properties within the same district.

Fair market value refers to the estimated price at which a property could reasonably be sold between a willing buyer and seller under normal market conditions. It may differ from the advertised price, construction cost or amount a seller hopes to receive.

1. How to Calculate the Fair Price per Square Metre

The first step is to collect asking prices for several comparable apartments in the same neighbourhood. The properties should be similar in size, floor level, finishing, building condition and project type.

Calculate the price per square metre for each property by dividing its total asking price by its stated area. The arithmetic average provides an initial benchmark, while the median—the middle value after sorting the observations—can reduce the influence of unusually expensive listings.

The comparison must use a consistent area measurement. Mixing net usable area with gross area that includes shared spaces can distort the results.

2. Seven Factors That Determine Apartment Value

Location: Proximity to public transport, major roads, schools, hospitals and commercial facilities affects demand. Prices may also vary between main streets and quieter residential roads within the same district.

Size and layout: Usable space, room distribution, bathrooms and design efficiency influence value. Smaller apartments may command a higher price per square metre than larger units in the same development.

Finishing and building condition: Fully finished apartments generally differ in value from semi-finished or unfinished units. Buyers should account for actual finishing costs and the condition of elevators, utilities, façades and shared facilities.

Floor and views: Natural light, ventilation, open views, noise levels and elevator availability can affect the property's appeal and market value.

Amenities and maintenance: Security, parking, landscaping and shared facilities may support higher prices in gated communities. However, high maintenance charges or incomplete services can reduce a property's attractiveness.

Legal status: Buyers should verify ownership documents, building permits, applicable reconciliation status, property records and any mortgages, disputes or restrictions on disposal. Legal complications may reduce marketability or limit access to financing.

Payment terms and delivery: A long instalment period does not automatically make an apartment cheaper. Buyers should calculate the total purchase price, down payment, instalments, maintenance deposits and additional fees, while considering delivery dates and potential construction delays.

3. Choosing the Right Valuation Method

Egypt's Financial Regulatory Authority issued updated Egyptian Real Estate Valuation Standards in September 2026, outlining three principal approaches: the market approach, the income approach and the cost approach. The appropriate method depends on the property and the purpose of the valuation.

The market approach compares similar properties. The income approach estimates value from expected rental income, while the cost approach considers the cost of constructing a comparable property, adjusted for depreciation and obsolescence.

4. A Practical Calculation Example

Assume three comparable apartments have asking prices of EGP 25,000, EGP 27,000 and EGP 28,000 per square metre. Their average is approximately EGP 26,667 per square metre.

For an apartment measuring 120 square metres, the initial estimated value would be approximately EGP 3.2 million, before adjustments for differences in condition, location, legal status and other characteristics.

This is an illustrative calculation, not a verified market valuation. Asking prices may differ from completed transaction prices, so buyers should use recent, verifiable evidence whenever available.