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JLL, the world's leading real estate investment and advisory firm, today has released its first quarter (Q1 2015) Cairo Real Estate Market Overview report that assesses the latest trends in the office, residential, retail and hotel sectors.
Ayman Sami, Head of Egypt Office at JLL MENA, commented: "All sectors of the Cairo real estate market have witnessed positive performance and improved sentiment. Significant efforts by the government to expand the economy and attract investors, including the recent Egyptian Economic Development Conference, have resulted in confidence and new investment commitments of more than USD 12.5 billion from four GCC countries. This confidence is most clearly demonstrated by the recently announced mega real estate project of the new Cairo Capital, which marks a natural long term progression to the East of Cairo. Given Cairo Capital will create a bigger magnet for business towards the East of Cairo, we expect that the West will need to reposition itself differently, and this will most likely be as a tourist and entertainment area. These trends provide great optimism as all real estate sectors should continue to benefit in 2015 and beyond."
He added: "With the residential sector reflecting the recovering economy, residential sale prices continued to increase across Cairo in the past quarter with the completion of new units in Al Rehab City and Zayed complex adding to the current supply. With an additional 372,000 sq m anticipated through a number of major new malls, we expect the retail market will experience an increase in vacancy rates and downward pressure on prices."
He continued: "With the government projecting a 20% increase in tourist arrivals this year, we anticipate the hotel sector to undergo further improvement reflected by a significant increase in hotel occupancy rates and the reopening of the Ritz-Carlton and completion of the St. Regis will be welcomed as the first additions to the Cairo hotel market since 2013. Many multinationals have recently relocated offices, which may result in a decline in the level of activity in the commercial sector; however, office supply will also remain below historic levels despite additional supply coming to the market."
SECTOR SUMMARY HIGHLIGHTS – CAIRO:
Cairo prime rental clock
This diagram illustrates
where JLL estimates each prime market is within its individual rental cycle at
the end of the relevant quarter.
*Hotel clock reflects the movement of RevPAR.
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