JLL revealed in its latest report that Cairo’s real estate market, with its various sectors, remained strong and saw healthy demand levels throughout the first half of 2019, Invest-Gate reports.
Commenting on JLL’s “Q2 Cairo Real Estate Market Overview” report, Country Head in Egypt Ayman Sami said, “Overall, Cairo’s real estate market continues to benefit from the various new development projects that are underway and in the pipeline. As the government takes several measures to boost the economy, we anticipate these projects to enhance confidence and continue driving investment in the coming months.”
The residential market saw a positive rebound in Q2, seeing a renewed interest in new developments in west Cairo, according to the report. JLL added that prices remain high on secondary properties in east Cairo, while sale prices of primary properties have hit record levels, leading people to shift to the rental sector. Others are also relocating into temporary homes, while awaiting the delivery of off-plan units in the New Administrative Capital (NAC).
Meanwhile, Cairo’s retail market saw a surge in rents of 7% quarter-on-quarter in Q2 2019, with high interest in newer retail centers and strips in prime locations, especially in east Cairo. As for the commercial real estate services, JLL expects new market entrants offering luxurious and innovative space in unserved locations to boost further demand in the sector.
The hotel sector stabilized with sports tourism expected to drive strong performance in Q3 2019, particularly after Egypt hosted the African Cup of Nations (AFCON). Planned projects such as Trail of the Holy Family, which will position the country as a destination for religious tourism, are expected to further stimulate demand in the sector.
Other big development projects, including the Grand Egyptian Museum (GEM) and Sphinx International Airport, are also contributing to the hospitality industry and are anticipated to drive traditional tourism throughout 2020.
As the office market remained stable in Q2, a new rental law is expected to boost demand for space in Cairo. Tenants currently renting in central Cairo will find it more cost-effective to turn to grade-A offices, leading to more development opportunities in Greater Cairo. Additionally, rents in west Cairo are set to improve over the next 12 months once GEM and Sphinx International Airport are fully operational.