Property buyers in Egypt hedged against inflation, currency devaluation by investing in real estate: JLL

Property buyers in Egypt hedged against inflation, currency devaluation by investing in real estate: JLL

The sales market in Cairo witnessed higher levels of activity in the third quarter (Q3) of 2022 as buyers looked to hedge against inflation and currency devaluation by investing in real estate.

This positive sentiment was noted across most developments in Cairo, however, it is important to highlight that buyers were being selective and mainly opted to purchase property from well-reputed developers with strong balance sheets, according to JLL.

Despite the prevailing economic conditions and the overall slowdown of the office sector, Cairo has been witnessing an upsurge in enquiries for office spaces.

This comes on the heels of ICT outsourcing companies seeking to operate in Cairo. This segment typically requires small office spaces ranging from 100 to 600 sqm. Additionally, interest in larger offices from new market entrants has also increased compared to three months earlier.

In terms of leasing, while the flotation of the EGP has caused many landlords to lease their office spaces in USD rather than the local currency, occupiers are looking for more flexible landlords who are willing to accept EGP.

Furthermore, due to import restrictions, the limited availability of materials required for fit-out work has resulted in an overall increase in the cost of fitting out office spaces. As