Prices have continued to increase across the residential and retail sectors in the first quarter (Q1) of 2018, according to Cairo Real Estate Market Q1 2018 report by Jones Lang LaSalle (JLL), Zawya reports.

According to JLL, the rise in residential prices has reached 2-7%, which is lower than the increase recorded in the second half of 2017. Whereas the residential rental market continued to decline by 1-7% in Q1.

JLL attributed the decelerated price growth to the increase in competition after a significant number of new project were launched, mainly in east Cairo between New Cairo and the New Administrative Capital.

The report mentioned that around 2,000 units were completed and 13,000 units are expected to be supplied over 2018.

“The retail sector experienced an average decline of 45% in US dollar terms during 2017, on the back of the currency floatation and other economic reforms over the past two years,” the report said, adding that the sector is stabilizing causing retail rentals to increase by 10% in US dollar terms in Q1 of 2018.

Although there is a strong demand for spaces within fully integrated office parks and business districts across the country, the office sector has also been relatively stable in Q1, with rentals rising in New Cairo only.

Rental growth in New Cairo has been between 11% and 16% over Q1 due to its location between Cairo International Airport and the New Administrative Capital.