Market Trends of Egypt Commercial Real Estate Industry
Rise in Demand for Commercial Spaces Across Greater Cairo
Cairo is the acknowledged financial and business center of Egypt. However, unlike other international cities, it does not have a clearly defined Central Business District (CBD). Grade A office space available for lease within Greater Cairo, is located on major commercial arteries such as 90th Street, which also holds a significant proportion of Cairo’s Grade B office stock. Business parks offering prime office space are mainly concentrated within western and eastern Cairo.
Demand for office space is directed toward both the eastern and western parts of Cairo. New Cairo is a preferred destination, providing corporate tenants better build quality, parking provision, and proximity to the New Administrative Capital and the airport. 6th October City, another preferred office destination, has also witnessed the development of quality business parks that have successfully attracted tenants looking to move from the traditional CBD/downtown Cairo into less congested areas.
Healthy levels of leasing activity were observed in high-quality buildings in the Cairo office market, notably in areas close to developments with robust retail and food and beverage services, such as 5A By The Waterway and Cairo Festival City.
Increase in Hotel Real Estate Across Key Cities in Egypt
Around 4.9 million tourists visited Egypt in the first half of 2022, an 85.4% increase compared to last year. Hotel occupancy also grew in 2022; during the first six months of 2022, it was 52.6 million nights, a 63.6% increase compared to the first half of 2021.
Continuous efforts are being made to improve tourist safety and security along with their overall experience in the country by the Ministry of Tourism's initiatives to excel in setting up new tourism regulations and improved global marketing campaigns.
The hospitality industry continued to strengthen with the construction of the Crowne Plaza West Cairo - Arkan. Cairo's total hotel inventory increased to around 28,000 keys in Q1, thanks to about 187 hotel keys being delivered. By the end of this year, almost 600 keys are also expected to be supplied.
The tourist arrivals to the region are forecasted to increase with the opening of the Grand Egyptian Museum, which was scheduled to open in 2023. With the United Kingdom lifting the ban on flights to Sharm El Shiekh, several airline operators have re-introduced the city to their destination list, which is estimated to enhance the number of tourist arrivals from the United Kingdom to Egypt.
