“Almost all sectors of Cairo real estate market witnessed optimistic growth and improved sentiment during 2015. Stronger confident and investment opportunities are a result of political and economic up-thrust”
Earlier this year, an analysis from international real estate firm JLL illustrated that the confidence is due to the announcement of grand project; the Cairo Capital that’ll serve as an addition to New Cairo and is likely to draw potential investors further to the East.
Report also portrayed that residential sales price continued its ascension all across Cairo throughout first quarter with commercial, hospitality and residential rents also climbing. Hotel industry also witnessed improved performance with growing number of tourists, renters and buyers as compared to the past quarter.
Both tourism and various sectors of real estate are expected to benefit further from increased foreign investments into Egypt. Cairo’s residential market continues to mature with improved sales as a result of improved economic and political sentiment.
Rent and buy cost for both apartment and villa has increased in almost all areas of Egypt’s capital city whereas others experienced reduction due to amorphous nature of rental market. Around new 31,000 units are planned to be delivered by end of 2015 out of which 11,000 are in Cairo while remaining 11,000 spread across the country.
This optimistic economic outlook arises from the Economic Summit that eventually resulted in additional investment most of which is geared towards the residential sector. Surely, Egypt property market is likely to strengthen by end of this year and more during the next.
During the first quarter, more or less 250 units were successfully completed in Al-Rehab City, New Cairo with additional 640 in the Zayed Complex that eventually boosted supply to some 106,000 units. By the time 2015 draws to an end, we’re expecting 20,000 more projects besides the above in Cairo.
The Palm Hills Development is worth to note with five of their projects delivered in second quarter. Despite the surplus, an optimistic response just as anticipated was received and as a result pumped selling price. One of the grand developments that completed successfully in the first quarter was Park Avenue on the Cairo Alexandria Desert Road.
Cairo’s commercial market experienced slight improvement as rental rates shot up dramatically in New Cairo due to much higher demand. Meanwhile, rental rates in West and Central Cairo remained intact. Vacancy rate has decreased by nearly two percent since fourth quarter of previous year 2014, representing a stronger demand for commercial space. This year by year increase in vacancy rate is primarily due to incursion of above 100,000 square metres all round the year.
Commercial sector is expecting another shot upwards with more than 37,000 square metres already covered. In comparison, supply of office space is relatively low to that of previous year. When looking at Sector One and Two in New Cairo, demand for office space is equally balanced but Sector Two takes the lead to some extent due to more availability of parking space, new supply and competitive pricing. The increase in demand is inducing developers to accelerate asked price of properties.
The above details suggest that properties in Egypt’s capital city are worth considering be it to buy or rent. However, one shouldn’t simply jump towards the deal rather do their homework first!