Positive sentiment in Cairo despite mixed market performance
JLL released its 2015 annual review of the Cairo Real Estate Market which reveals that while the Cairo real estate market experienced robust growth over the first half of 2015, a combination of economic, political and security uncertainties have taken some of the steam out of this growth and the market has generally cooled over the past few months.
Although, Ayman Sami, Head of Egypt Office at JLL, says it is encouraging to note that the Egyptian government is proposing structural reforms, state incentives and major infrastructure spending to attract much needed foreign investment, which will eventually trickle down to the real estate market. “This government support is contributing to a continuation of positive sentiment which is leading some developers to announce new projects. “
The retail market continues to transform, reflecting the changing society and continued positive sentiment. Greater Cairo has witnessed a rapid growth in international standard shopping malls and more recently a focus towards high-end retailing. Rentals in the retail market continued to increase throughout 2015.
In the office market, a total of around 31,000 sqm of GLA of new office space was delivered in 2015, increasing the total stock to around 920,000 sqm. Of the new supply, 15,000 sqm was in 6th October, while the rest was located in New Cairo.
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