Cairo real estate market performs positively in Q3: JLL

CAIRO - 7 November 2019: All sectors of Cairo real estate market performed positively in the third quarter of 2019, according to JLL Research Report.

The report, issued on Wednesday, stated that the residential sector is stabilizing and absorbing the shock of the first and second quarters' slump in performance, with more developers looking at West Cairo as a promising destination for new projects.

"Prime office rents continued to rise as more businesses seek to enter the market in Egypt and vacancy rates have declined significantly due to the lack of additional office supply over the past 12 months," the report noted.

According to the report, further progress on the New Administrative Capital (NAC) is driving the continued shift to the east of the city, which is applying upwards pressure on rental rates in locations within New Cairo.

"Retail rents have also continued to increase as new market entrants are attracting more footfall. The retail market has also benefited from the opening of the Almaza City Centre in Q3 2019," it added.

As per the Cairo hotel market, the report stated that it continues to perform strongly, recording a 14 percent growth in Revenue per Available Room (RevPAR) compared to 2018, with occupancyrates increasing to 73 percent in the YT August.

"With limited new supply and increased visitor arrivals, the Cairo hotel market is expected to perform strongly over the next 12 months," it anticipated.