Egypt: Real Estate Market 2015

Office Market

Demand for office space in Cairo comes from the banking, oil and gas, pharmaceutical, construction and ICT sectors. Notable recent transactions have included the Canadian Embassy’s lease of offices at Nile City Towers, while Barclays Bank will be relocating from the city center to CityStars in a move which will see them lease 14,000 sq m. Office development stalled as a result of the political disruption of recent years, but activity now appears to be reviving; Smart Villages has announced a new development at Future City in New Cairo and CityStars has pressed ahead with development of an additional office building. However, a less positive sign is Cairo Festival City’s postponement of its Phase II office development. Prime office rents in the city center have declined to US$35 per sq m per month but, even so, they remain around double the rents in peripheral areas.



Cairo’s modern retail provision has continued to increase, with recent openings including Cairo Festival City Mall (168,000 sq m GLA) in 2013 and the smaller Galleria 40 in 2014. These have joined existing malls in Greater Cairo including CityStars (150,000 sq m GLA) and Mall of Arabia (180,000 sq m GLA). More than 900,000 sq m of additional retail space is expected to be delivered over the next two years, most notably in Citadel Plaza in Mokattam and Madinaty Mega Mall in New Cairo. The most significant international retailer to enter the market is IKEA, which opened a store at Cairo Festival City in 2013. Despite increased uncertainty in the market, retail rents have remained broadly stable, but a growing number of tenants have sought to pay turnover rents.

Industrial Market

The government’s Industrial Development Authority (IDA) is a major driver of industrial activity, attracting new investment to the sector and developing industrial areas. Key industrial locations in Greater Cairo include 6th October City and 10th Ramadan City, both of which are expected to see further investment by the IDA. Government land is available for purchase at a cost of US$15-25 per sq m, about half the typical price of other commercial land.