Hosted under the theme A Reset for the Real Estate Sector, real estate consultant JLL revealed during the event some of the key insights and trends expected to headline the next year for Egypt’s real estate sector.
“Our cities have evolved since the onset of the pandemic, giving rise to various new trends across workspaces and residential spaces, which will continue to impact the property market going forward,” says Ayman Sami, Country Head, JLL Egypt.
According to Sami, there is a heightened focus on the digital economy, as well as the need for more resilient, inclusive and sustainable communities.
“In Egypt, we remain optimistic about the property market as the fundamentals are strong. We look forward to continuing to support the next stages of growth within the real estate industry to ensure that we are creating value for our clients, our people, and the wider economy,” he says.
TOP 5 TRENDS EXPECTED TO HEADLINE EGYPT'S REAL ESTATE SECTOR IN 2022
CAIRO REAL ESTATE MARKET OVERVIEW
With Egypt’s recent devaluation, JLL expects that it will stimulate the short to medium term demand on the secondary residential market with buyers seeking ways to hedge against inflation.
While the consultant believes that Food & Beverage (F&B), Entertainment and Value brands will perform better in the medium term until affordability starts to pick up.
Looking at hospitality post-pandemic, JLL notes that the sector has been recovering quickly and they expect the devaluation will also stimulate demand for hotels and tourism in Egypt.
“Offices may see downward pressure on rents in the short term and this will quickly recover as people continue to return to the workplace and the economy starts to pick up again,” the consultant reveals.
SUSTAINABILITY IN REAL ESTATE IN EGYPT:
Environmental, social, and governance (ESG), the buzz word in real estate globally is no longer just seen as ‘a nice to have’ but an absolute necessity.
“From investors to financiers, developers and construction companies – everyone across the value chain of the built environment must now consider the impacts of ESG but more importantly understand their role in supporting the commitments by governments and the expectations by society as a whole,” says JLL.
As Egypt prepares to host COP27, all eyes will be on the country to see how they respond to issues around sustainability in the built environment and integrating ESG into their real estate strategies.
F&B IN CAIRO:
“Technology is changing the way people eat and the way restaurants are operated. Developments must identify which is a priority for them – food or fuel,” says JLL.
Over the next year, sustainability in the F&B industry will increasingly be a big area of focus for brands especially given that the restaurant industry contributes to most pollution, in comparison to other industries.
DIGITALISATION IN EGYPT'S CONSTRUCTION INDUSTRY:
As the property market witnesses “an unprecedented demand for products, development margins are continuing to be squeezed due to spiralling construction costs and wider market implications impacting affordability,” says JLL.
This demand will lead to an acceleration in innovation and technology deployment as developers look to create efficiencies and ultimately cost reductions in delivering real estate.
PREPARING FOR THE WORKFORCE OF THE FUTURE:
With COVID-19 shifting the focus of the way people work, it has provided an opportunity to shape a new – and improved – version of what the workforce of the future looks like for Egypt.
“Future successful companies will be those that are bold and proactive in shaping their workplaces according to the changing needs and preferences of a changing workforce, where solutions are tailored to meet individual employee needs and help them thrive,” says JLL.
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