Photo Courtesy of
The signs of improvement in the Egyptian economy during the fourth quarter (Q4) of 2013 have had a positive impact on the real estate market, stated real estate investment and advisory firm
"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,"said
"With stronger tourist arrivals and higher GDP growth, 2014 could mark the beginning of the recovery of the
Around 3,200 residential units were completed in Q4 2013, bringing the total yearly stock of units to 85,000 in areas monitored by
The report highlighted that the retail market also experienced the largest surge in retail construction supply since 2011. Around 190,000 square miles of additional retail space were introduced in Q4.
"Significant levels of new supply entered the retail and residential markets as a number of major projects were completed in Q4," according to the Cairo Real Estate Market Overview report.
"The most significant completion was the
Rental rates for residential units have deteriorated, however. This decline was attributed to the departure of many expatriates from the country due to the political unrest.
The report noted that the "very low" room rates at hotels located in
Retail rents have declined by 8% over the past quarter. The study pointed out that landlords have been "considerate" with rent prices.
"Retailers continue to seek rent reductions as a hedge against these uncertainties. More malls are now operating on a base rent plus percentage of sales turnover arrangements, which aligns the interests of the owner and the retailer," the report stated.
The report mentioned that hotels' performance remained subdued due to a lack of international tourists.
According to the
"The total investment in the industrial sector in
Most Popular Stories
- Photo ID Required for Unemployment Benefits
- Software Writers Sought in Indiana
- Ukraine Crisis Limits Losses in Gold, Silver
- Can GOP Dodge Immigration Bullet?
- Tech Firms to Increase Hiring for 4th Year in a Row
- Job Fair for S.C. Grads
- How Past Mistakes Will Drive Ukraine's Future
- Chiquita, Fyffes to Form Top Banana
- Millennials Favor Saving Over Investing: UBS
- Big Earthquake Rumbles Northern California