Cairo office market could fuel greater demand for homes

Friday, June 18, 2010

Cairo office market could fuel greater demand for homes

Cairo's rapidly expanding office sector could fuel greater demand for homes in the Egyptian capital in the coming months.
Jones Lang LaSalle, the largest property investment and advisory company in the Middle East and North Africa (MENA), reports that Cairo was the fastest growing prime office market, in terms of rental increases in 2009, suggesting more workers are moving to the city, which could further boost demand for homes to buy and rent.

In a keynote speech at The Euromoney Egypt Housing & Real Estate Finance conference in Cairo, Avik Rakhit, director of Jones Lang LaSalle MENA, said that office rents were rising due to a Cairo's rapidly growing population, increasing economy and strong commercial demand.

Residential property investor sentiment is likely to improve in Egypt on the back of Mr Rakhit's speech, particularly in Cairo, where annual rental returns of over 10 per cent are achievable.

Cairo's housing market has reaped the benefits of the country's rapidly increasing tourist numbers and strengthening economy in the past few years.

According to the Egyptian Tourist Authority, the number of tourist arrivals in Egypt almost trebled between 2001 and 2007, from 4.7 million to 11.1 million.

Tourism growth has also increased demand for well-located homes in other parts of Egypt, including Hurgada and Sharm el-Sheikh.

Read our guide to buying a property in Egypt

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