In its latest report, real estate consultant JLL notes that following a positive start to 2018, Cairo’s real estate market has witnessed an ongoing uplift in performance across most sectors with the residential sector benefiting from increased sale prices.
With GDP growth expected to accelerate to 5.3% in the 2017/18 fiscal year, the healthy investor climate can be attributed to stronger industrial production, recovering tourism and increased investment.
“Increased investor confidence is evident across the residential market with developers reporting positive sales performances and construction of the New Capital City fast on track. The sales sector continues to outperform the rental sector, with sales prices increasing while rentals have fallen marginally across all sectors during Q2. This reflects healthy sales demand from millennials entering the prime home buying age and the country's fast-growing population,” notes JLL.
“This quarter there has been a notable shift in demand from the secondary sales market to newly developed units being offered directly from developers as the former has become relatively less affordable. Developers have been able to capitalise on this trend through launching smaller, more affordable units on competitive payment plans,” said Ayman Sami, Country Head, Egypt, JLL.