JLL, the world’s leading real estate consulting and investment firm, has released its new report on the performance of the real estate market in Cairo during Q1 2024, Invest-Gate reports.

The report highlights a significant increase in investor confidence, driven by the boom in foreign direct investment flows and the concrete steps taken by the Egyptian government to stabilize the currency price. These factors represent a turning point in the sustainable growth and development of the real estate market in Egypt.

In line with the Egyptian government’s efforts to reduce financial burdens and position itself as an attractive market for future investments, the residential units sector had a strong start in Q1 2024.

Over 7,000 units were completed, with most of them located within master-planned development projects. This has led to an increase in the total market supply of residential units to around 276,000 units. It is expected that approximately 24,000 units will be completed during the remainder of 2024.

The construction and delivery work in the sector witnessed significant progress, as many developers launched new projects and announced expansion plans, particularly in New Cairo and its upcoming expansion to the east. Notable upcoming projects include the “At East” project by Al Ahly Sabbour Developments in Mostakbal City and the “The Crest” project by Il Cazar Developments in New Cairo.

While the expected devaluation of the pound has provided contractors and real estate developers with a sense of stability and clarity regarding pricing and strategy, the substantial increases in interest rates and inflation rates have made some buyers more cautious when making purchasing decisions.

The secondary market in Cairo experienced an unprecedented rise in selling prices, with prices sharply increasing within a short period. For example, prices increased by about 83% annually in 6th of October City and 95% in New Cairo. Rental prices also saw a significant annual increase of 42% in 6th of October City and 43% in New Cairo.

Ayman Sami, Country Head of JLL Egypt, emphasized the importance of real estate as a major driver of the economy and an essential pillar in Egypt’s growth process. He expressed optimism about the market’s expansion in the coming period, driven by encouraging government policies aimed at stimulating the economy, greater stability in the currency price, and continued capital flows and major investments in infrastructure.