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News Release


Selective growth in Cairo residential and retail markets in Q1 Says Jones Lang LaSalle

​​​Jones Lang LaSalle, the world's leading real estate investment and advisory firm has released its first quarter (Q1) 2013 Cairo Real Estate Overview report. In summary, the report concludes that despite on-going political and economic challenges facing the Cairo real estate market, selective growth can be seen in some residential and retails sectors in the city.

Commenting on the report, Ayman Sami, Head of Egypt Office at Jones Lang LaSalle said:
“Although we are continuing to experience ongoing  challenges facing the Cairo and wider Egyptian real estate market we are seeing selective demand and new developments in both the residential and retail sectors within this market. The office sector has also seen a number of leasing transactions in the first quarter and the residential and retail sectors have witnessed a number of new project launches and the  start of several new projects including the ‘Mall of Egypt’ which will be the  largest mall in the country. Tourist numbers have also increased and while occupancy levels are improving they are being offset by further falls in the average daily rates that is tempering any improvement in RevPAR.”
Summary highlights, Cairo Market Overview, Q1-2013:
  • A series of on–going political disputes, court decisions against the government and street protests have negatively impacted the Egyptian economy during Q1.

  • Egypt’s GDP grew by 2.2 % in 2012. While the political situation has now partially stabilised, the economy is expected to only recover slowly, with IHS Global Insights predicting real GDP growth of 2.7% in 2013 and 4.2% in 2014.

  • Despite the negative economic news, the stock market has performed surprisingly well, with Egypt’s benchmark EGX30 index gaining slightly since the start of the year, to stand at 5,501 points at the end of February.

  • Prime Minister Hisham Kandil is due to meet with the IMF to continue negotiations on the USD 4.8 billion loan in late March with some discussion that he could request an immediate bridging loan of USD 750 million ahead of agreement on the full amount. The government has also announced alternative plans to reduce the budget deficit from 11.0% to 10.4% for 2013, should the negotiations with the IMF be protracted or unsuccessful.

  • Qatar, which has been Egypt’s main donor over the last two years (with over USD 5 billion in aid), has signaled that it is not ready to offer more funds. This could encourage Egypt to request bilateral aid from Saudi Arabia and other regional nations.

  • The New Urban Communities Authority has announced that the residential and commercial land plots that were scheduled for release at the end of 2012, will now be released by the end of March 2013.

  • The Ministry of Finance has announced adjustments to the  capital market law to allow for the introduction of Sukuk’s (Islamic bonds that allow creditors to buy shares in a project and generate profits).

  • To boost the economy and provide further development opportunities, Egypt’s Industrial Development Authority has announced the release of 1,692 industrial land plots. These plots (with a total area of 5.3 million sq m) are located across several industrial zones in Greater Cairo and other governorates. 

  • SODIC (one of Egypt's leading real estate companies) has announced strong revenue of EGP 122 million in 2012 from the handover of units in its Allegria residentia