Economic optimism has increased and foreign investors are attracted to Egypt following the stabilization of EGP, according to real estate consultancy JLL’s Q1 Cairo report. Highlights:

The hotel and tourism industry has in particular benefited from the devaluation, as Egypt has become a more affordable destination for international tourists, the report says. Demand for hotels in Cairo is picking up significantly as security issues are addressed, travel bans removed, and tourism promotion campaigns increased. Occupancy rates have already increased significantly to reach 69% in the year to January 2017 as market-wide average daily room rates dropped to USD 89 over the past year, but are expected to recover throughout 2017.

For Cairo’s office market: New Cairo continues to be the most active location in terms of new office supply. “Banks are the most active participants in the offices sector at present, while FMCGs are negotiating their lease terms in order to reduce their market exposure. Oil & gas occupiers are generally reducing their activities due to current market conditions, but are expected to show increased demand in the medium term on the back of new field explorations.”

The residential market continues to see strong demand for units through 1Q2017 and “is expected to remain steady.”

Cairo’s retail market is adapting to economic pressures and, following the EGP devaluation, “landlords have revised their contractual terms to assist tenants. After correction for prime units’ rents and accounting for the applied capping mix, the average rental rate has dropped to USD 800 per square meter per annum.”