Retail performs well in Cairo: JLL


July 29, 2019 | By RetailME Bureau

Following a positive start to 2019, all sectors of Cairo’s real estate market remained strong and demonstrated healthy demand levels throughout the first half of the year, indicates JLL’s Q2 Cairo Real Estate Market Overview report. The retail sector, in particular, was the best performing segment of the market.

“Cairo’s real estate market overall continues to benefit from the various new development projects that are underway and in the pipeline. As the government takes several measures to boost the economy, we anticipate these projects to enhance confidence and continue driving investment in the coming months,” said Ayman Sami, country head, Egypt, JLL.

The retail supply in Cairo witnessed one new addition in Q2, with the completion of The Yard (15,000 sqm of GLA) in Rehab City. Approximately 216,000 sqm of retail space is expected to enter the market in 2019, including the Open-Air Mall of Madinaty, which is already partially open, and Almaza City Centre.

Most of the future supply is in New Cairo, with very few announcements in West Cairo. At a time when Sheikh Zayed City’s current retail centres are witnessing expansions, especially on the 26th of July Corridor, New Cairo will still remain a prime location for retail. As such, more developments are expected to shift towards the East as confidence in the New Administrative Capital’s success grows sturdier. That convergence in the East has, in turn, provided stimulus and competition for retailers and developers and has been complemented by appreciating retail performance and increased consumer appetite in Cairo.

The retail market in Cairo saw rents increase significantly by 7%, compared to Q2 2018, with augmented interest in newer retail centres and strips in prime locations, especially in East Cairo. New market entrants offering luxurious and innovative space in unserved locations are expected to boost further demand in the sector.

Meanwhile, retail vacancy rates increased on an annual basis to 15% but remained stable when compared to Q1 2018. Looking ahead, vacancy rates are expected to increase with the delivery of new supply over the remainder of the year. This new stock will be matched with higher rental rates because those new market entrants will offer more luxurious, innovative and superior quality space in underserved locations and will be quasi monopolistic in those areas. The focus among both existing and new malls remains on enhancing the retail experience, with developers continuing to innovate by offering interactive concepts, such as pop-up events and activities.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Sunil Kumar and Debashish Mukherjee at MRF 2024

What does it take to sustain profitable growth in the post-IPO phase? 

Continue Reading

October 23, 2024 | By Anurima Das

Mahalle began its operations in 2022 as an “Authentic Turkish Grocery in 

Continue Reading

October 7, 2024 | By Anurima Das
Naresh Kumar Bhawnani, Founder & Chairman, West Zone Group

“Retail is a people’s business. When building a retail brand or the 

Continue Reading

October 3, 2024 | By RetailME Bureau
Sunil Kumar, CEO, Spinneys

From being one of the first retailers in Dubai to ban single-use 

Continue Reading

October 1, 2024 | By RetailME Bureau
Walid Shabana, Co-founder & CTO, Rabbit

For starters, Rabbit is a growing e-commerce grocery platform in Egypt always 

Continue Reading

September 30, 2024 | By RetailME Bureau
Arunachalam Palaniappan, CTO, Choithrams

In 2024 grocery retail major Choithrams has achieved several milestones underscoring its 

Continue Reading

September 12, 2024 | By RetailME Bureau
#Topshelftalks session at Food Business Forum 2024

Industry pioneers are embracing a comprehensive strategy that integrates consumer insights, digital 

Continue Reading

July 3, 2024 | By Anurima Das
#EdgeOfTomorrow session at Food Business Forum 2024

The regional grocery retail market is evolving fast keeping pace with constantly 

Continue Reading

July 3, 2024 | By Rupkatha B
#CartToCouch session at Food Business Forum 2024

If anything, the Middle East market is excited about quick commerce – 

Continue Reading

July 2, 2024 | By Rupkatha B
#EcoEchoes session at Food Business Forum 2024

From ethical and local sourcing to adopting cutting-edge technologies to curb food 

Continue Reading

July 2, 2024 | By Rupkatha B
#ByteSizedBreakthroughs session at Food Business Forum 2024

The regional grocery retail market is becoming more and more diverse, offering 

Continue Reading

July 2, 2024 | By Rupkatha B

Spinneys, the leading premium fresh food retailer, has announced the opening of 

Continue Reading

June 24, 2024 | By RetailME Bureau




Download Images RetailME Magazine