Retail in Cairo begins to bounce back

Retail in Cairo begins to bounce back

Cairo, Egypt : The retail sector in Cairo was among the better performing sectors in 2021, according to JLL’s latest market overview report released today.

With both demand and new project launches partly rebounding during the year, JLL says the introduction of new F&B and entertainment concepts by landlords helped to attract footfall and increased visitor dwell time.

The report highlights that in the short-term, average asking rents in Cairo’s retail market are anticipated to increase in line with annual escalations, which are linked to inflation and are built into most lease contracts. Landlords are also expected to continue to offer incentives such as contribution towards capital expenditure for store fit-outs and greater adoption of a revenue-share model.

Looking forward, retailers are anticipated to benefit from growing consumer spending over this year and next – albeit at a slower pace. However, JLL warns of some headwinds for the sector.

“Despite the positive results we’ve seen, the retail sector also needs to consider the inflationary pressures that are expected to lead to consumers reigning in spending on non-essential goods in the short-term, which could have repercussions for high-end fashion and luxury stores in particular,” said Ayman Sami, Country Head, JLL Egypt.

In the hospitality sector, around