Rentals are expected to increase by 25% this summer, according to real estate market stakeholders, the highest increase in rental prices, Daily News Egypt reported.
The influx of tourists in the summer, especially from the Gulf region, is the main factor contributing to the rental price hike. Gulf tourists favor apartment rentals over hotel accommodations, specifically on the Nile Corniche, in Downtown Cairo, Garden City, or Dokki.
Apartment rentals in Downtown Cairo costs between EGP 7,000 and EGP 8,000 a month, said Mohamed Badawi, a broker in Garden City.
Prices in Garden City start at EGP 20,000, said Mohsen Hafez, a real estate expert and owner of a real estate advisory company.
While the trend has often been rentals on the Nile Corniche, in Downtown Cairo, Garden City and Maadi, the trend is now shifting towards rentals in new cities such as Fifth Settlement, Sheikh Zayed, 6 October City, a broker in the Fifth Settlement told Daily News Egypt. Unit rentals in the new cities start from EGP 10,000 per month, with brokers getting a 30% share of the rent.
The rise in rental prices affects rent costs for Egyptians where rent prices increase by 10% and 12% annually compared to the usual 5% increase, Hafez noted.