Jones Lang LaSalle reports there are reasons for optimism in Egypt’s commercial property market in 2012. Developers based in the United Arab Emirates and Qatar are on schedule to finish several projects in Egypt and other large contracts are currently being awarded, which experts believe will translate to increased activity in the near term. Egypt’s political upheaval is still creating a great deal of uncertainty, however, and may impact growth. Even so, the prospect of increased demand and the need for more infrastructure improvement is tipping the scales in favor of a positive outlook. For more on this continue reading the following article from Property Wire.
Cairo’s commercial real estate market is showing growth, with major companies looking for up to 15,000 square metres of office space, according to the latest report from consultants Jones Lang LaSalle.
But there are still concerns about the political situation in the country which means there is significant uncertainty and the future outlook of property markets will depend upon Egypt’s ability to address its largely unresolved challenges.
‘It is a challenging time but we are optimistic about the long term fundamentals of the Cairo real estate market,’ said Ayman Sami, head of Jones Lang LaSalle’s Egypt office.
‘If the country is able to address its political issues then we are confident that activity will return to the market relatively quickly as demand exists across a number of sectors,’ he explained.
The report says that many international FMCG and petrochemical occupiers are already demanding between 5,000 and 15,000 square meters of office space, while retailers continue to bring new stores to the country including American Eagle, an American clothing and accessories retailer, Pinkberry, a frozen yogurt chain, and LC Waikiki, a Turkish clothing retailer.
A number of real estate projects are also heading towards completion this year, including Cairo Festival City. The report adds that the growth is being driven by United Arab Emirate and Qatari developers.
‘We are already seeing some evidence of increased activity but continued certainty is a basic requirement for the economy to fully rebound,’ said Sami.
Drake and Scull International (DSI) was awarded a $21.77 million contract from Real Estate Investment for a hospitality project in Shark El Sheikh in Egypt last June.
Khaldoun Tabari, chief executive officer of DSI, told Construction Week that the company expected anticipates substantial growth in Egypt driven by the large population growth needing an increase in domestic property and the need for infrastructure development.
This article was republished with permission from Property Wire.