JLL's report revealed that Q2 continued to witness the impact of the recent devaluation of the Egyptian Pound, as consumers and suppliers changed behaviour to adjust to market conditions.
“Most sectors of the Cairo real estate market are now approaching the final stages of decline resulting from the devaluation and the subsequent economic turbulence,” said Ayman.
The hotel sector is the only sector currently in the 'upturn stage' of its market cycle as the currency devaluation has made Egypt a more affordable destination for foreign visitors. Domestic tourism is also increasing, with local citizens contributing to the recovery of occupancies experienced over the past year, as per the report.
“The effects of the devaluation continued to be felt in the office market throughout Q2, shifting negotiating power further in favour of occupiers. Vacancy levels have remained stable during Q2, but are expected to increase with additional stock being added to the market later in the year,” said JLL.
In terms of residential, there has been continuing confidence towards the residential market and has led to several developers announcing new projects or further stages of existing projects across Cairo.
“This has included Palm Hills Developments, which is expanding its integrated residential community in West Cairo, and Mostakbal City (located close to the New Capital City), which has commenced site preparation and utility works with full coverage expected by 2019,” said JLL.