Clarity 'returning to Egypt property market'
Cairo, May 16, 2012
It remains a challenging time for the real estate sector in Cairo amid on-going uncertainty, however clarity is slowly returning to the Egyptian property market, according to a report.
The general outlook continues to be cautious but optimistic on the long term fundamentals of the Cairo real estate market as demand exists across a number of sectors. However, much depends on the outcome of the current political process and the forthcoming Presidential elections, said property expert Jones Lang LaSalle (JLL) in its report.
There have several signs of improving sentiment over the first quarter, said the JLL first quarter review on Cairo Real Estate.
The prime among them was the record participation of the major real estate developers at the first Cityscape Egypt in late February besides the announcement of several new projects by developers including the Amer Group.
While many development projects have been delayed, there are a number of major projects near completion, the report stated.
Cairo Festival City will deliver its first office phase in mid-2012 and Damac is looking to open its retail and office project opposite Dandy Mall in 2013,' said the JLL in its review.
The rela estate expert pointed out that construction had recommenced on a number of projects that had previously been suspended (eg: Qatari Diar’s major mixed use development on the Nile Corniche).
The residential sector has seen returning confidence and increased sales activity, said the JLL in its report. 'Sodic has recently announced that several future stages of their West Town project have now been ‘Sold Out’ off plan.'
Tourist visitors to Egypt have increased by 40 per cent in the first quarter compared to the previous year, providing a major boost to the Cairo hospitality sector.
'There remains active demand for up to 10,000 sq m of office space from international occupiers, although many of these groups have scaled back their requirements in light of portfolio optimisation strategies and delayed decisions until after the results of the presidential elections are known,' the report said.
According to JLL, the retailers continue to open new stores with recent examples including Go Sport who signed the contract for their first store in Egypt at Dandy Mall.
'First Imax cinemas has also signed a contract to open in the Sheikh Zayed neighbourhood by 6th October. Many local retailers have continued to take new units in street front locations,' the report added.-TradeArabia News Service