The currency float in March has brought much-awaited stability to Egypt’s market, igniting a shift in sentiment for the country’s housing sector, according to data from real estate research agency JLL.
Developers adopted a cautious approach and selectively launched new projects, managing costs and liabilities due to market uncertainties. Although the market began to stabilise in Q2, future projects are anticipated to face delays.
“In the second quarter of 2024, roughly 2,200 residential units were completed, adding to the existing stock of around 278,000 units, with apartments dominating the completions. Looking ahead, more than 22,000 units are expected to enter the market in the second half of the year,” said a JLL report, a copy of which was made available to The Egyptian Gazette.
According to the report, Cairo’s residential sector is poised for long-term improvement, drivenby several factors. The recent stability following the currencydevaluation, along with the Ras El-Hekma deal and the partnershipbetween Egypt and the European Union in late June, hasrepositioned Egypt as an attractive destination for foreign directinvestment (FDI).
“These developments present opportunities for the real estate market to thrive. In terms of rental demand, it is expected to surpass the availability of units for sale, given the disparity between rising inflation and income levels,” it said.
The office sector in Cairo is poised to experience positive momentum as market conditions stabilise and business confidence grows. The availability of high-quality office spaces will drive further growth, attracting both local and international occupiers seeking strategic locations in a thriving market, according to the report.
Meanwhile, the outlook for the hospitality sector remains positive, with expectations of more operators announcing expansion plans, demonstrating their confidence in the long-term growth of the tourism industry in Egypt.
“The first three months of 2024 saw a four per cent increase in international tourist arrivals to 3.7 million compared tothe same period last year. This growth aligns with the government’starget to increase visitor numbers by 25-30 per cent in 2024, followingthe record 15 million visitors in 2023,” the report said.
As the tourism industrycontinues to flourish, investment in hotel projects and infrastructureis expected to strengthen, with a focus on luxury accommodationsand improving visitor experiences.
“The market’s outlook suggests that Cairo’s residential sector is expected to experience positive growth and potential investment opportunities, driven by stability, FDI prospects, and evolving dynamics in the long run. Developers will likely adapt their strategies to align with changing market dynamics and capitalise on the shifting preferences of homebuyers and tenants,” it added.
