Cairos real estate market has witnessed an ongoing uplift in performance across most sectors with the residential sector, in particular benefiting from increased sale prices in 2018, according to JLLs latest market report.

The report said, according to Oxford Economics, Egypts GDP growth is expected to accelerate to 5.3% in the 2017/2018 fiscal year compared to 4.2% in the previous year. This accelerated growth is attributed to stronger industrial production, recovering tourism, and increased investment.

The report noted that increased investor confidence is evident across theresidential marketwith developers reporting positive sales performances and construction of the New Capital City fast on track.

The report noted that sales sector continues to outperform the rental sector, with sales prices increasing, while rentals have fallen marginally across all sectors, during second quarter (Q2) of the current year.This reflects healthy sales demand from millennials entering the prime home buying age and the countrys fast growing population.

Ayman Sami, JLLs country head in Egypt, said that the second quarter of the current year shows that there has been a notable shift in demand from the secondary sales market to newly developed units being offered directly from developers, as the former has become relatively less affordable.

Sami noted that developers have been able tocapitaliseon this trend through launching smaller, more affordable units on competitive payment plans.

He pointed out that although the real estate market remained relatively unchanged in Q2, the ongoing positive sentiment and strong performance across most sectors continue to provide attractive market conditions for further investment, in line with the governments ongoing focus on economic development.

He continued that in theoffice sector, several residential developers have announced new office projects for sale on extended payment terms as they seek to replicate the success of residential launches. With a relatively stable Q2 performance, the sector is posed close to the bottom of its cycle, with some upside potential for rentals over the next 12 months.

The strongest performing sector of the market in Q2 werehotelson the back of continued government efforts to increase visitor arrivals through global touristic campaigns and improved security increasing flight arrivals.Hotel occupancies and room rates have increased with performance expected to receive a further boost from the opening of the long anticipated Grand Egyptian Museum and the new Sphinx international airport later in 2018, according to the report.

He elaborated that theoutlook remains positive overall for the residential, office, and tourism sector owing to overall economic growthand stable political conditions.

There has been little change inretail rentalsin Q2, but continued confidence among investors is contributing to positive sentiment. Developers continue to seek optimising their centres through incorporating retail concepts, in line with the constantly changing preferences of their target clients.

2018 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

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