Sales prices increased by 38% in the cities of October and New Cairo in the second quarter of 2023

“JLL” real estate consulting company issued a report entitled “The real estate market in Cairo during the second quarter of 2023” to highlight unit prices in various regions and the volume of supply from various sectors, in addition to the new strategies adopted by real estate companies to mitigate the burden of high prices. Prices, increasing inflation rates.

The report indicated that with the high price inflation currently witnessed in Cairo, the average selling prices increased by 38% compared to last year in both the cities of Sixth of October and New Cairo.

The report continued: The levels of demand in the rental market maintained their high during the second quarter of the year, which led to an increase in rents by 19% in 6th of October City and 17% in New Cairo City compared to the same period last year.

The report attributed the low level of rent increase in New Cairo to the increase in supply in the city compared to the 6th of October City.

The report stated that despite the continued weak sales activity of this sector 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.

Difficulties in determining the prices

The report pointed out that developers are facing difficulties in determining the prices of off-plan projects due to the ongoing economic turmoil, which prompts developers to adopt a “wait-and-see” approach.

In the context of many well-known development companies seeking to complete projects on time in order to maintain strong relationships with customers and enhance investor confidence in them, more than 6,000 units were delivered during the second quarter, bringing the total supply of residential units to about 255,000 units.

Market is still strong

But in general, the market is still strong and the demand is high, and real estate developers are trying to acquire new lands and expand their business to increase their profitability, and the developer delivers units after 3 or 4 years of off-plan sales, while the collection plan is for about 8 years, as the effect of developers faltering or the exit of some Developers from the market will not appear in the current period, and we hope that in the next three years there will be stability in the market so that developers can overcome any pitfalls or shortcomings.

With regard to the office market, occupancy rates are still high, albeit slightly lower than before "Covid-19". The past period witnessed challenges for companies regarding most of them not knowing their office space needs, and there is a slowdown in decision-making during the second quarter.