Cairo’s real estate market is showing growth, with major companies looking for up to 15,000 square metres of office space, according to the latest Jones Lang LaSelle report.
But with the country’s significant uncertainty still at play, a more positive future will depend upon Egypt’s ability to address its largely unresolved challenges.
“It is a challenging time but we are optimistic about the long term fundamentals of the Cairo real estate market,” commented Ayman Sami, head of Jones Lang LaSalle’s Egypt office. “If the country is able to address its political issues then we are confident that activity will return to the market relatively quickly as demand exists across a number of sectors.”
The report says that many international FMCG and petrochemical occupiers are already demanding between 5,000 and 15,000 sq m of office space, while retailers continue to bring new stores to the country; including American Eagle, an American clothing and accessories retailer, Pinkberry, a frozen-yogurt chain, and LC Waikiki, a Turkish clothing retailer.
A number of real estate projects are also heading towards completion this year, including Cairo Festival City. The report adds that the growth is being driven by UAE and Qatari developers.
“We are already seeing some evidence of increased activity but continued certainty is a basic requirement for the economy to fully rebound,” said Samil Drake and Scull International (DSI) was awarded a $21.77m contract from Real Estate Investment for a hospitality project in Shark El Sheikh in Egypt last June.
Khaldoun Tabari, CEO of DSI, told Construction Week that the company expected anticipate “substantial growth” for the company in Egypt, “driven by the large population growth that fosters strong real estate domestic demand in addition to the fundamental need for infrastructure development.