Arab Finance: Egypt is moving towards macroeconomic stability, which drives growth opportunities in Cairo’s real estate market as the fourth quarter (Q4) of 2024 begins, according to JLL’s Cairo Market Dynamics Overview for Q3 2024.

This progress is backed by strong foreign direct investment (FDI) and the recent $820 million loan from the International Monetary Fund (IMF).

Developers in the retail sector are introducing new entertainment options to increase foot traffic and spending levels.

Stability in the market, along with a new subsidy program and several strategic infrastructure projects, is boosting confidence in Egypt’s hospitality sector.

“Improvements in hard infrastructure, such as the new monorail and investment and subsidy programs, are expected to add to the mid to long term fundamentals of the office and hospitality sectors, Ayman Sami, Country Head, JLL Egypt, said.

“New projects and ambitious infrastructure initiatives are further reshaping the landscape, promising sustained growth across the capital city’s real estate ecosystem in Q4 2024,” Sami noted.

In Q3 2024, nearly 6,000 new residential units were delivered in Cairo, particularly in East Cairo and its expansion areas, raising the city’s total residential stock to around 288,000 units.

The tourism and hospitality industry in Egypt remains robust, with over 8 million visitors in the first seven months of 2024.

Cairo's hospitality market recorded a five-percentage point (pp) decline in occupancy during this period, with the average daily rate (ADR) falling by around 3% and revenue per available room (RevPAR) dropping by about 11% on an annual basis.

The outlook for Q4 2024 is positive, with the addition of around 1,200 keys to Cairo’s existing hotel stock of 26,700 keys.

The government aims to draw in 25 million tourists annually by 2028 and to push tourism growth through advancing large-scale projects like launching the new monorail.

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