Egypt's real estate & hospitality industries to recover: JLL report

Egypt’s real estate and hospitality industries are poised for recovery and growth, according to a report from global real estate consultancy JLL. The report states that a revived privatization program and a weaker EGP will accelerate Cairo’s real estate sector’s recovery.

The privatization program is expected to attract foreign direct investments (FDIs), which could accelerate construction activities and the recovery of the real estate sector in Cairo. JLL’s Cairo Real Estate Market Overview Report for Q1 2023 predicts that the expected FDI inflow will relieve pressure on real estate activities across the country, particularly in Cairo.

The report further notes that during the first quarter of 2023, 4,000 residential units were added, bringing the total stock to 249,000, with an additional 29,000 new units expected by the end of the year. However, project delays and fewer launches may occur due to hikes in construction costs. In Q4 2022, the average office rent in Cairo decreased by 1% year-on-year to $358 per square meter per year.