The residential sector got off to a strong start in Q1 2024, with over 7,000 units completed and a further 24,000 units expected to be completed by the end of the year. This growth is driven by increased investor confidence, a stabilized currency, and substantial foreign direct investment (FDI). However, rising interest rates and inflation have caused some buyers to adopt a more cautious approach.
While a soar in residential prices is seen: Secondary market sales prices in Cairo have witnessed an unprecedented surge, with prices increasing by 83% in 6 of October City and 95% in New Cairo.
Hospitality sector poised for recovery: The hospitality sector is expected to rebound on the back of cross-border collaboration projects, increased FDI, and the EGP 50 billion tourism development initiative. Despite the positive outlook, the hospitality sector is still facing some challenges, such as the ongoing COVID-19 pandemic and the global economic slowdown.
Retail sector facing challenges: The retail sector continues to face challenges due to delayed project completions, limited consumer spending, and the exit of several international brands. However, the entry of local Egyptian brands is helping to boost occupancy rates.
Office sector outlook remains positive: The office sector is expected to see long-term improvement, driven by demand for high-quality office space. Over 500,000 sqm of office space is scheduled for completion this year. The recent currency stabilization is expected to boost confidence in the office market by offering clarity on pricing and leasing terms.
Overall Outlook
The overall outlook for the Cairo real estate market is positive. The residential and hospitality sectors are expected to grow strongly in the coming years, while the retail and office sectors are expected to recover from their current challenges. The government’s commitment to developing the real estate sector is a key factor that will support this growth.
You Might Also Like: Mamsha Ahl Misr, The Touristic Promenade.
