Retail real estate in Egypt faces major challenges for this reason

While the pound maintained its stability against the dollar, and gold continued its losses during recent dealings, the eyes of Egyptians turned to the real estate sector as one of the hedging tools, which caused record increases in the prices of all residential and commercial units.

Jones Lang LaSalle, a company specializing in real estate management, investments and real estate development consulting, revealed the growth of the residential apartment market and its high prices in the Egyptian market despite adverse economic winds.  

The report stated that although the sales activity of this sector continued to be weak in Cairo in general during the second quarter of 2023, the secondary market witnessed a higher level of momentum compared to the main market as a result of the flexibility of individual real estate owners in negotiating sales prices.

Prices jump by more than 50 percent

  The increase in the prices of residential units caused a decline in the sales movement during the recent period, as the prices of all units increased by more than 50 percent in some areas.

The last period witnessed a decline in the volume of supply with the continued non-issuance of building permits in more than one city, and the continuous rises in the prices of building materials increased the cost for real estate development companies, which caused the existence of many disputes between unit holders and real estate developers, and the phenomenon of delayed delivery also exacerbated, This caused the sector's problems to multiply, but despite this, the sector benefited from the stability of the pound against the dollar and the continued losses of gold, and real estate has become one of the successful hedging tools at the present time.

Real estate market in Egypt

On the other hand, the retail real estate market in Egypt faces the biggest challenges because it relies on importing international brands, and not all of them can import because this matter is affected by the currency exchange rate, availability and high prices, and inflation resulting from the high exchange rate. Introducing new local products.

He added that retail sales will be affected, and then rents, and the last period did not witness an increase in retail store rents.

Hospitality and hotel sector in Egypt

At the same time, the hospitality and hotel sector in Egypt is witnessing strong growth on the back of many initiatives launched by the government and the private sector, including the development of airports and logistics services, the introduction of new tourism programs, as well as the “visa-on-arrival” or “visa-free entry” initiatives for a new group of nationalities.

Although the current supply of hotel rooms in Cairo stabilized at 28,000 rooms at the end of the second quarter, projects comprising about 900 rooms are expected to be completed in the second half of the year, including renovation projects for many existing hotel rooms.