Cairo property market 'still attractive'
Cairo, April 5, 2011
Despite the recent developments, the basic fundamentals of Cairo real estate market have not changed and looks positive for the medium to long-term, said real estate expert Jones Lang LaSalle in its recent report.
JLL in its latest Mena House View, predicted a positive medium to long term outlook for the Cairo real estate market despite the current challenges following Egypt’s recent political upheaval.
JLL pointed out that Egypt could emerge stronger eventually through greater transparency and business friendly policies.
"Despite the negative short term economic impact of the recent revolution, Egypt’s economy will continue to grow. In the short term, real estate activity in Cairo will remain depressed due to the on-going uncertainties dominating the post-revolution period," remarked Ayman Sami, head of Egypt office, JLL Mena.
"2011 could therefore represent something of a ‘lost year’ with decisions to lease or purchase real estate delayed until the ‘dust settles’ and greater certainty returns to the market after the elections later in the year," he noted.
Greater transparency and business-friendly policies could make the country more attractive for business in the long term in comparison to the pre-revolution period, Sami said.
According to Sami, local demand will remain a strong driver for real estate growth as normalcy returns with restoration of peace and security across Egypt.
"Egypt was and will remain as one of the most attractive real estate markets in the Mena region in terms of its potential long- term opportunities, growth and diversity. The Cairo market is the flag bearer of the country’s real estate industry and will lead the road to recovery when existing uncertainties eventually settle down," the expert said.
"In the present climate, there remains (albeit reduced) liquidity in the system and those opportunistic investors currently active in the market could be rewarded by an ability to negotiate more attractive deals than those available at the end of 2010 before the recent unrest,” he added.-TradeArabia News Service
