The office sector in Cairo sees improvement during the third quarter of 2022 despite the worsening economic conditions and the slowdown of the office sector, Invest-Gate reports.
In Q3, the average office rent in Cairo rises 5% YoY to about $347 per sqm annually.
The capital’s office vacancy rate grows to 10% in Q3 2022 from Q3 2021.
About 95,000 sqm of office gross leasable area (GLA) will be delivered in the third quarter of the year, while 38,000 sqm of floor space is expected to be completed.
“With both landlords and occupiers unwilling to bear the full cost of office fit-outs, the market is experiencing a trend upturn, creating an opportunity for operators who are now opting to lease-out whole buildings at a discount, undertake fit-out work, furnish them, and then re-lease units to prospective tenants,” Ayman Sami, Egypt Country Head at JLL, comments.
“However, unlike flexible offices, these are typically rented to tenants on a long-term basis,” Sami adds.
As for the residential sector, more than 5,000 units are delivered in Cairo in Q3 2022, bringing the total inventory to about 242,000.
Around 7,000 residential units are expected to be completed in Q4 2022.
On an annual basis, sales prices go up 7% in the 6th of October City and 13% in New Cairo, while annual rents increase averages 7% in the 6th of October City and 3% in New Cairo.
Furthermore, there are no hotel completions in Cairo in Q3, but nearly 450 rooms are anticipated to be added in Q4.