Cairo real estate market surges by 83% in 6th of October, by 95% in New Cairo

According to JLL's Cairo Real Estate Market Overview Report for Q1 2024, the residential sales prices in Cairo's secondary market witnessed a surge, with an increase of nearly 83 percent in the 6th of October area and a staggering 95 percent in New Cairo.

 

Cairo's tourism and hospitality sector is being strengthened through cross-border collaborations, an increase in foreign direct investment (FDI), and a LE 50 billion initiative to enhance tourism. 

 

These initiatives align with the country's objective of welcoming 30 million visitors by 2028 and expanding its hotel capacity by almost 250,000 rooms.

 

While no major hotels were added at the beginning of the year, maintaining the current hotel stock at approximately 26,700 rooms, the rest of the year is expected to witness the opening of several new hotels and renovations, adding around 1,400 additional rooms.

 

In terms of hotel performance, Cairo experienced a decline in city-wide occupancy to 65 percent in the first quarter of 2024, ending in March. Concurrently, the average daily rate (ADR) reached USD 123, indicating a 10 percent decrease compared to the previous year. 

 

Consequently, the revenue per available room (RevPAR) experienced a year-on-year decline of 19 percent, reaching USD 80.

 

Egypt welcomed a record influx of 15 million tourists in 2023, and this positive momentum is expected to continue this year. Additionally, the recent Ras El Hekma deal with the UAE is set to contribute to the sector's growth by introducing various hospitality and entertainment projects in the coastal city.