While conditions remain challenging across Cairo real estate market, elevated interest from major investors and developers coupled with associated economic reforms signal a return to a more stable market, according to JLL’s Q3 2017 Cairo Real Estate Market Overview.
JLL’s report outlines how the residential and other sectors are showing signs of improvement in 2017 following a period of instability owed to devaluation of the Egyptian currency and new reforms introduced by the government.
“The real estate market overall is starting to stabilise. The developers continuing to invest in existing and new projects. Flexibility is key as developers have had to adjust their products in response to reduced consumer purchasing power. Increased investor confidence suggests the residential market is approaching the bottom of its current cycle, paving the way for overall improved market conditions in 2018,’’ says Ayman Sami, Country Head of Egypt, JLL.
Residential Real Estate Market
The support as residential market plans further expansion plans of the satellite cities as they continue to absorb population growth and reduce densities in Central Cairo. The strength of underlying demand protects the residential sector from the full force of economic pressures impacting the commercial markets.
Although there were no additions to residential supply in Q3, construction continues on previously announced projects. The increased number of projects are expected to be launched within the New Capital City.
The hotel and tourism sector has witnessed improved occupancy rates on the back of the government’s campaign efforts to boost domestic and international tourism and more competitive room rates. Further projects have been announced in Cairo and across Egypt demonstrating restored investor confidence.
Despite developers continuing to invest in extending current and new projects, the retail market continues to face challenges. The retailers remain squeezed by increased prices and falling consumer power.
The office market has seen little further decline in face rentals in Q3 2017. The rents are expected to soften over the next 12 months.
As Head of JLL’s Egypt office Ayman oversees the delivery of all services including development consulting, property management, real estate research, retail and office leasing, capital markets and valuation services, to ensure that the highest level of local and international expertise is being used.
Prior to joining JLL, Ayman has worked on projects in Egypt in the areas of real estate development, land and asset valuations, as well as market research and analysis for major establishments. He holds a Bachelor of Science Degree in Marketing Management from The American College of Greece – Athens, Greece.