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| Ayman Sami |
Cairo, Egypt; 18 March 2025 – After navigating a challenging start to 2024, Egypt is expected to see its GDP growth accelerate to 4% in 2025, driven by dissipating inflation, greater currency stability, and public sector reforms, according to JLL’s Middle East and Africa (MEA) Market Review and Outlook 2025.
Supporting this positive outlook are forecasts predicting a slowdown in inflation from 28.3% in 2024 to 17.8% and increased Foreign Direct Investment (FDI), especially from GCC countries. This influx of capital and international trust boosts confidence in Egypt's real estate sector and signals optimism about the country’s economic potential and property market, estimates JLL.
Ayman Sami, Country Head, JLL Egypt, said: “Egypt’s real estate sector has navigated economic turbulence and policy tightening, but the 2025 outlook is increasingly positive. The easing of inflationary pressures, coupled with increased foreign direct investment and greater stability of the Egyptian pound, are driving renewed investor interest. In 2025, Cairo's hospitality and residential segments are expected to lead growth, supported by the government’s commitment to strengthening the investment environment.”
Faced with challenges, including rising costs, escalating wages, and geopolitical conflicts that impacted logistics and supply chains, the construction project market in the MEA also slowed in 2024, declining by 20.2% to US$ 90 billion. In Egypt, the residential sector, valued at US$ 2.4 billion, led the project awards, according to JLL. Despite additional pressures from labour and technology issues, increased foreign investment demand, market competition, and complex regulatory considerations, the MEA market remained robust, with a USD 1.9 trillion project pipeline.
Ahmed Hemmat, Head of Projects and Development Services for JLL in Egypt, said: “Egypt's construction market is demonstrating remarkable resilience in the face of global challenges. While geopolitical tensions and economic uncertainties have undoubtedly impacted the sector, ambitious national projects and increasing foreign investment present exciting opportunities for developers and investors. Strategic partnerships and innovative solutions will be key to addressing challenges such as rising material costs and supply chain complexities.”
Driven by improving economic and market conditions, Cairo’s residential sector retained its resilience throughout 2024, with rental rates outperforming the market and achieving higher demand and activity. Both 6th of October and New Cairo experienced a substantial average rental increase of approximately 108% year-on-year, while secondary markets saw price surges of 112% and 116%, respectively, attributed mainly to high inflation. Healthy demand will continue to see growth in rental rates and sales prices in 2025, albeit at a slower pace than 2024.
Cairo saw the completion of roughly 24,000 new units last year, bringing the total residential inventory to approximately 293,000 units. In 2025, the sector is poised for further expansion, with scheduled delivery of close to 32,000 additional units.
Cairo’s hospitality market soared in 2024 as government efforts enhanced the tourism landscape, with the country’s budget-friendly rates attracting a record 15.7 million visitors to the Egyptian capital. The industry also witnessed an uptick in supply activity, with construction projects gaining full momentum and major hotel operators, such as Hilton, Accor, and IHG resorts and hotels, announcing expansion plans in the Egyptian market. While Cairo saw the completion of just one hotel in 2024, this year, nearly 2,000 additional keys are expected to enter the market through various hotel openings.
Occupancy levels in Cairo dropped by 5.40 percentage points (pp) in 2024, and the average daily rate (ADR) saw a marginal increase of 0.52%. Egypt’s thriving hospitality sector is set to continue its upward trajectory with additional supply supporting its goal of welcoming 18 million visitors in 2025.
Cairo’s office market remained stable, with a marginal reduction in vacancy rates and a fall in average rents by 1.8% in the year to Q4 2024. Almost five times the number of units completed in 2024 are scheduled for completion in 2025. Of these, high-quality Grade A office spaces, particularly those within business parks in mixed-use developments, which offer significant advantages such as ample parking and superior amenities, are commanding premium prices due to limited supply relative to stronger demand. Increased demand from corporate occupiers is driving market growth in the medium to long term, while growth in the outsourcing market will stimulate additional activity within the office sector.
Following several years of downward pressure, Cairo’s retail sector picked up pace toward the end of 2024. Average rental rates in the fourth quarter remained consistent with the previous quarter, with the secondary market outpacing primary regional and super-regional malls, increasing annually by 14% and 6%, respectively.
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $23.4 billion and operations in over 80 countries around the world, our more than 112,000 employees bring the power of a global platform combined with local expertise. SEE A BRIGHTER WAYSM. For further information, visit jll.com.
Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 2000 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Cape Town, Johannesburg and Nairobi. jll-mena.com