Cairo Real Estate Market – Q3 2018

No Comments

Cairo Real Estate Market Overview Report – Q3 2018

The Cairo real estate market remained stable during Q3 as demand typically shifted to coastal areas during the summer season. Efforts by the Ministry of Housing and Development to promote the real estate market abroad have added to the generally positive sentiment in the sector.

Real GDP is forecast to increase by 5.3% in the 2017/2018 fiscal year compared to 4.2% in the previous year. This growth results from increased investment and the steady application of economic reforms.

The construction and building materials industry is key to the real estate sector. It is expected to pick up following the inauguration of Egyptian Cement Group’s USD 1.1 billion cement & marble production complex in Beni Suef. This plant will assist the building industry through reducing prices of construction materials, as well as reviving activity and contributing to job creation in Upper Egypt.

The residential sector continues to perform strongly, despite demand shifts towards coastal areas over the summer season. Secondary sales experienced a slight drop in prices over the quarter due to increased primary sales. The New Cairo market experienced an increase in quoted rents in Q3.

The office sector continues to grow at a healthy pace. Demand is equally distributed between leasing and sales in good quality integrated office parks. The sale of office space represents a relatively new phenomenon, with developers releasing new office projects for sale on eased payment terms.

Retail rents have remained stable over the quarter, with vacancies remaining level. Vacancies are however expected to increase in the medium term, due to new market additions. Local brands continue to perform strongly due to changes in demand preferences and affordability levels.

The hotel and tourism sector continued to display positive trends over the quarter on the back of increased government efforts to revive the sector. Improved security measures and active advertising campaigns have resulted in the resumption of flights that were previously banned.

You can download the full report here.

Include yourself in the JLL database to receive reports like this as soon as they are released.

Ayman Sami

Author: Ayman Sami

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.

More from our blog

See all posts