(MENAFN Press) Jones Lang LaSalle, the world's leading real estate investment and advisory firm, has released its fourth quarter (Q4) 2013 Cairo Real Estate Overview report, covering the latest trends in the office, residential, retail, hotel and industrial markets in Cairo, Egypt
The major finding of this report are as follows:
While the Egyptian economy showed signs of improvement in the final quarter of 2013, these have yet to have a positive impact on the real estate market
All sectors of the market remaining at or close to the cyclical trough of their cycle. Prime rents remained stable in most sectors of the market in Q4 2013, although small falls were recorded in the residential and retail markets
Significant levels of new supply entered the retail and residential markets as a number of major projects were completed in Q4. The most signifcant completion was the Cairo City Festival retail mall which opened in November 2013 with the first IKEA store in Egypt
Performance in the hotel sector has remained subdued, as the number of tourists visiting Egypt declined by almost 20% in 2013. This has resulted in a dip in average hotel occupancies in Cairo, that stood at 48% in 2013
Commenting on the findings, Ayman Sami, Head of Egypt Office at Jones Lang LaSalle said: "The more positive sentiment that has resulted in an improvement in many of the leading economic indicators in late 2013, is expected to translate into improved performance in the real estate market in 2014. With stronger tourist arrivals and higher GDP growth, 2014 could mark the beginning of the recovery of the Cairo real estate market, providing that the progress that has been made on the political roadmap during late 2013 is continued.