Cairo’s real state market sees shift in business sentiment in Q2 2024: JLL
Updated 7/28/2024 3:20:00 PM
Arab Finance: Conditions of the real estate market in Cairo has stabilized during the second quarter (Q2) of 2024, pushing business confidence higher grows, according to JLL’s Cairo Market Dynamics Report for Q2 2024.
The Central Bank of Egypt’s (CBE) decision to float the Egyptian pound in Q1 2024 has caused a shift in sentiment for the office sector in Cairo, with expectations to generate long-term improvement and growth opportunities.
In the second half (H2) of 2024, Cairo is set to receive approximately 540,000 square meters (sqm) of new office space, mainly in the New Administrative Capital (NAC) and New Cairo.
In Q2 2024 alone, around 15,000 sqm of office gross leasable area (GLA) was delivered, expanding the total stock to over 2 million sqm, with enquiries for large office spaces between 2,000 and 5,000 sqm increasing.
“The CBE’s decision to float the Egyptian pound has brought much-awaited stability to the market, igniting a shift in business sentiment,” Ayman Sami, Country Head, JLL Egypt, said.
“A substantial amount of space was delivered in Cairo’s retail sector while the residential sector witnessed an unprecedented rise in sale prices and rents, despite project delays due to prevailing market conditions,” Sami added.
The retail sector in Cairo has seen the completion of nearly 102,000 sqm GLA in Q2 2024, expanding the total stock to around 3.14 million sqm.
The residential market also witnessed an unprecedented rise in sale prices and rents due to currency devaluation and soaring inflation.
Moreover, JLL expects that about 1,300 keys would be added to the hospitality sector this year, dominated by 5-star properties.
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