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Cairo residential sector strengthens in the last quarter of 2014

4th February 2015

The Cairo real estate market showed signs of strengthening in the residential market and stability in the commercial sector due to new projects in the second of half of 2014. This according to JLL’s Cairo Real Estate Market Overview report.

​​​“Cairo’s office landscape expansion will increase the total stock across Greater Cairo and rents will be stable across all the commercial locations,” said Ayman Sami, Head of Egypt Office at JLL. “Developers are now able to progress with stalled projects, and the high level of delays witnessed in recent years is therefore likely to decline. As confidence returns, the Ministry of Tourism continues to promote a number of mega investments across the country, 2015 could see major new hospitality projects announced in Cairo.”

The report also revealed that Cairo’s office performance remained relatively unchanged over the last quarter of 2014, with rents stable across all the commercial locations monitored by JLL. The major completion in Q4 was a further 14,000 sqm in Mivida (New Cairo). An additional 52,000 sqm is expected to be delivered in 2015, of which 31,000 sqm are due for delivery in Q1.

Cairo’s residential market continues to recover with improved sales figures. Apartment and villa sale prices increased during 2014. Over the past quarter, the strongest growth has been recorded in villa prices in October (up 9%) and apartment rents in New Cairo (up 7%). The positive political and economic outlook is expected to drive investments in the residential sector, particularly in prime property, thus strengthening the market further in 2015.

The Cairo retail market remained stable in Q4 2014, with average prime retail rents static at between USD 720 – USD 1,416 sqm and average line store rents unchanged at USD 1,170 sqm.  Demand has been relatively active over the quarter, particularly from the food and beverage segment.