Cairo residential rents remain stable
Cairo, February 17, 2014
All sectors of the Egyptian property market remained at or close to the cyclical trough of their cycle even as the Egyptian economy showed signs of improvement in the final quarter of 2013, said a report.
The prime rents in capital Cairo remained stable in most sectors of the market in the fourth quarter of 2013, although small falls were recorded in the residential and retail markets, stated the report by property expert Jones Lang LaSalle.
JLL said significant levels of new supply entered the retail and residential markets as a number of major projects were completed in the fourth quarter. "The most significant completion was the Cairo City Festival retail mall which opened in November 2013 with the first IKEA store in Egypt," it said.
JLL pointed out that despite the economy showing signs of improvement in the fourth quarter, there had been no positive impact on the real estate market yet.
On the hotel sector, JLL said the performance had remained subdued, as the number of tourists visiting Egypt declined by almost 20 per cent in 2013. This has resulted in a dip in average hotel occupancies in Cairo, that stood at 48 per cent in 2013.
Commenting on the findings, Ayman Sami, the head of Egypt Office at JLL said: “The more positive sentiment that has resulted in an improvement in many of the leading economic indicators in late 2013, is expected to translate into improved performance in the real estate market in 2014."
"With stronger tourist arrivals and higher GDP growth, 2014 could mark the beginning of the recovery of the Cairo real estate market, providing that the progress that has been made on the political roadmap during late 2013 is continued," he added.-TradeArabia News Service