Cairo’s real estate market is recording an ongoing improvement in performance across most sectors, particularly the residential sector as it is benefiting from soaring sale prices in 2018, Invest-Gate reports.

“The second quarter shows that there has been a notable shift in demand from the secondary sales market to newly developed units being offered directly from developers, as the former has become relatively less affordable,” Ayman Sami, JLL’s country head in Egypt, is quoted as saying.

Sami highlights that Egyptian developers were able to capitalize on such a trend by establishing smaller, more affordable units with competitive payment plans.

“Although the real estate market remained relatively unchanged in Q2, the ongoing positive sentiment and strong performance across most sectors continue to provide attractive market conditions for further investment, in line with the government’s ongoing focus on economic development,” he adds.

In its report on Cairo’s real estate market for Q2 2018, JLL reveals that enhanced investor confidence was evident across Cairo’s residential market with developers reporting positive sales performance and construction of the New Administrative Capital remaining “on a fast track.”

As to the demand for rentals during Q2, JLL outlines that sales sector continued to outperform the rental sector, as sale prices were constantly surging while rentals have dropped marginally among all sectors. “This reflects healthy sales demand from millennials entering the prime home-buying age and the country’s fast-growing population,” the report adds.

According to Sami, the strongest performing sector of the market was hospitality “mainly helped by the tremendous government efforts to boost visitor arrivals through global touristic campaigns and improved security which led to increasing flight arrivals.”

“Hotel occupancies and room rates increased during Q2 with performance expected to receive a further boost from the opening of the long-anticipated Grand Egyptian Museum and the new Sphinx international airport later in 2018,” he underlines.

On the office market, JLL remarks that with a notably stable Q2 performance, the sector stands close to the bottom of its cycle, with some upside potential for rentals over the upcoming months.