The residential market is supported by further expansion plans of the satellite cities as they continue to absorb population growth and reduce densities in Central Cairo. The strength of underlying demand, says JLL, protects the residential sector from the full force of economic pressures impacting the commercial markets.
According to JLL’s report, there were no new additions to the gated community residential supply in Q3 2017, but construction continues on previously announced projects. The majority of the 33,000 units scheduled for delivery over the next 3 years are located in New Cairo. An increased number of projects are expected to be launched within the New Capital City, further enhancing the easterly shift in the growth of Cairo.
Looking at the hotel and tourism sector, JLL maintains that the sector witnessed improved occupancy rates on the back of the government's campaign efforts to boost domestic and international tourism and more competitive room rates. Further projects have been announced in Cairo and across Egypt demonstrating restored investor confidence.
The office sector has witnessed the announcement of new projects such as Heliopolis Development Group's 'Cairo Capital Center', which JLL says reflects improved confidence in the office sector. Located in sector 1 of New Cairo, the six-storey development will add around 7,750 sq m of prime office spaces by the end of 2018.