Cairo – Mubasher: The real estate market in Cairo has experienced an improved performance across all sectors during the third quarter of 2019, according to JLL’s Q3 Cairo Real Estate Market overview report issued on Tuesday.
“As the economic situation in Cairo is recovering and the Egyptian pound is strong, [the country is] witnessing healthy demand levels across all the sectors of the market,” Ayman Sami, country head of JLL, Egypt, said.
JLL also forecast more economic improvement in the coming months on the back of government initiatives and huge tourism projects, which are expected stimulate investments in the market.
The hotel sector has seen its highest performance since 2008 with occupancy levels rising by 300 basis points to 73% in August since the beginning of 2019.
Meanwhile, the tourism sector has also improved on the back of new infrastructure, enhanced security, as well as new attractions such as the Grand Egyptian Museum scheduled to be inaugurated by 2020.
The number of tourists coming to the most populous Arab nation are projected to increase as operators such as Easy Jet resumed operations to Sharm El Sheikh and Hurghada.
As for the residential sector, prices of villas have increased over three-month period ended 30 September, by 13% in western Cairo and 11% in New Cairo, leading two property developers to reveal new gated community projects in west Cairo.
Retail rents also rose by 5% during Q3-19, registering a total growth rate of 20% year-on-year, driven by the inauguration of two developments, including Almaza City Centre.
In addition, the office rentals in the Egyptian capital went up by 9% in central and eastern Cairo and by 11% in western Cairo during the July-September period of 2019, boosted by the high demand in gate communities.
“More developers are offering flexible office space on short-term leases and this concept may prove attractive to financial and other companies who are currently assessing their requirements for space and the potential of relocating staff to the New Administrative Capital,” the report indicated.
