Cairo's real estate market had a strong 2024, with growth recorded across the board as the market adapted to economic conditions, global consultancy JLL wrote in its latest Middle East and Africa Market Reviews and Outlook report. The report looks at the residential, hospitality, office, and retail sectors and their performance throughout the year in some of Africa and the Middle East’s capitals.

IN CONTEXT- 2024 was a particularly turbulent year, which kicked off with FX shortages and a growing gap between the official and unofficial price of the USD in the local market. Things changed in March following the float of the EGP, which ushered in greater price transparency, curtailed speculation, and revitalized investor confidence in Egypt’s real estate sector.

RESIDENTIAL-

“The residential sector retained its resilience throughout 2024, with rental rates outperforming the market and achieving higher demand and activity,” the report said, pointing to increases in the rental prices of units in Sixth of October City and New Cairo — prices more than doubled in both areas compared to a year earlier, rising 108%.

The secondary market also saw a jump in prices, which the report attributed to “high inflation and homeowners rushing to match developer prices without considering factors like payment plans or affordability constraints.” Prices of units on the secondary market increased 112% in Sixth of October City and 116% in New Cairo in 2024 in comparison to the year before.

“Both rental and sales prices are expected to continue accelerating throughout 2025, albeit at a slower pace than the previous year,” according to the report. JLL points to healthy demand driving rental growth and partly attributes sales price increases to “economic forces such as inflation and devaluation.”

In numbers: The residential sector saw approximately 24k new units completed during 2024 — one of the highest figures reported in the region, just after Dubai’s 33.3k units — bringing the city's total residential stock to about 293k units. An additional 32k units are expected to be completed this year.

Looking ahead: JLL remains bullish on the sector in the short- and medium-terms, it said, pointing to improving economic and market conditions and increasing confidence in the country’s real estate sector on the back of GCC interest.

HOSPITALITY-

The report saw 2024 as “another year of remarkable success for Cairo’s hospitality market, with the sector breaking records in tourist arrivals and exceeding expectations by welcoming 15.7 mn visitors.” The sector saw increased supply activity as construction accelerated, with major players like Hilton, Accor, and IHG announcing expansions in Egypt. While only one hotel — Hyatt Centric Cairo West — was counted in the report’s criteria as having opened its doors in Cairo last year, 2025 is set for stronger growth with nearly 2k new keys expected to be added.

REMEMBER- Last year, the finance and tourism ministries launched a new EGP 50 bnsubsidized loan program for the tourism sector. The program offers financing at 12% interest, providing tourism operators with extended support to expand facilities and accommodate an anticipated growth in visitor numbers. The government plans to add some 240-250k rooms to the existing hotel room capacity.

The numbers: Occupancy levels in Cairo and Giza fell by 5.4 percentage points in 2024 to 65.8%. This dip pushed the revenues recorded per available room during the year to fall to around 4.9% annually.

The fine print: The report notes that the figures may be influenced by an increasing number of budget-conscious travellers who prefer short-term rentals over hotels.

The trend: West Cairo is emerging as the city’s tourism epicenter, backed by government support for its cultural and historic appeal, according to the report. The area is attracting major hospitality investments and tourism attractions, including the new Grand Egyptian Museum and Giza Plateau upgrades — signaling strong growth and diversification for Egypt’s hospitality sector.

OFFICES-

The office market was mostly stable in the capital in 2024 — vacancy rates fell to 9.5% from 9.6% a year earlier, and average rents fell by 1.8% in the year to 4Q 2024 to sit at USD 456 per sqm. Additionally, high-quality grade A office spaces maintained stronger performance due to limited supply.

The market's stability was underpinned by landlords anticipating currency fluctuations and incorporating them into pricing strategies early on, alongside a shift toward predominantly greenback-based transactions that helped mitigate foreign exchange risks.

The numbers: Cairo currently has some 2.2 mn sqm of available office space, after 131k sqm were added over 2024. The report sees an additional 648k sqm of office space added to the market this year.

Looking ahead: “As inflation dissipates compared to recent highs, the general economic backdrop is expected to improve considerably, which will help drive business sentiment and, in turn, investments. As a result, increased demand from corporate occupiers is expected to drive market growth in the medium to long term,” the report read.

BUCKING THE TREND was the retail sector, which saw a slowdown over the past year thanks to construction delays, leasing challenges, and developers reconsidering their projects. The sector started to show signs of improvement later in the year, with rent remaining stable during 4Q 2024 compared to the same period the year before.

The outlook is positive, with a forecast dip in inflation expected to “provide some relief to both retailers and consumers.”

Your top infrastructure stories for the week:

  • Introducing Modon, a new state company that will manage, operate, and maintain buildings, infrastructure, and urban communities to be set up under a MoU between New Urban Communities Authority and the Mostakbal Misr Agency for Sustainable Development. (Statement)
  • The Cairo Transportation Authority is launching a tender for a 300 sqm river bus dock near Cairo University to be leased as a commercial space. (Al Mal)
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