JLL publishes year in review on Egypt’s real estate sector
The float of the EGP has negatively impacted most sectors of the real estate market in the short term, JLL said in its year-end report on Egypt (pdf). Developers chose in November to pass the rising cost of building materials on to homebuyers, with further price hikes of 25-30% expected in early 2017. Some developers sought to introduce flexible payment plans to offset the impact. Office and retail rentals quoted in USD have doubled in cost in local-currency terms, prompting a growing number of landlords and developers to agree to cap FX rates at lower-than-market rates. Only the tourism sector has benefitted from the float, with demand expected to pick up as Egypt has become 52% cheaper for foreign visitors. Most hotel owners are looking to renovate existing, older and inefficient properties in Cairo to increase profits from operational efficiencies, rather than investing in the construction of new hotels.