JLL Report: Consumers Prefer to Rent in New Cairo Over 6th of October

Tuesday, 26th July 2016

A recent report by Jones Lang La Salle (JLL) revealed apartment and villa rental rates in New Cairo increased at a faster rate compared to 6th of October City, according to Daily News Egypt.

The report reviews Cairo real estate market for Q2 2016 and has attributed New Cairo’s popularity to university students and commuters opting for a more convenient location, reported Amwal Al Ghad.

Apartment and villa sale prices remained unchanged despite the 14.5% currency devaluation in both New Cairo and 6th of October City. However, the decline in US dollar prices for 6th of October City was slower compared to New Cairo.

In New Cairo, Q2 saw the delivery of several projects, mainly Palm Hills’ Village Garden Katameya, Mivida, and Madinaty. In 6th of October, Ashgar City and Palm Parks contributed to the increase apartment inventory.

Office space in Cairo remained stable at 941,000 square meters of gross leasable area (GLA), said Ayman Sami, Head of JLL Egypt.

“A limited new supply of grade A office space in the short term has led vacancy rates to decline from 33% to 25% over the past year,” Sami said. “Although a vacancy rate of 25% is still considered high, the decline is regarded as positive for this segment.”

JLL is a professional services and investment management company  specialising in real estate.  JLL produces quarterly reports on the real estate sector in the MENA region. The reports cover the different sectors in real namely, residential, office, retail and hotel sectors.

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