Cairo, Egypt: JLL, a leading professional services firm that specializes in real estate, investment management and development consultancy services, has shared insights on what is on the horizon for the Egypt property market in 2022 at its real estate outlook event in Cairo.
Hosted under the theme ‘A Reset for the Real Estate Sector’, Ayman Sami, Country Head, JLL Egypt, and JLL experts provided an overview of the outlook for the property market, trends driving sustainability and Cairo’s food & beverage (F&B) industry, the value creation of digitalization in Egypt’s construction industry, as well as insights on the workforce of the future.
Sami commented: “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. 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.”
Key insights shared by JLL at the real estate outlook event included:
- Cairo Real Estate market overview: The recent devaluation will stimulate short to medium term demand on the secondary residential market as buyers seek ways to hedge against inflation and the reduction in value of their Egyptian Pounds (EGP) savings before prices start to rise. Food & Beverage (F&B), Entertainment and Value brands will perform better in the medium term until affordability starts to pick up. The hospitality sector is recovering quickly and the recent devaluation will further 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 year for mainstreaming of Sustainability: Environmental, social, and governance (ESG) is no longer a ‘nice to have’, but a need to have. 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. With COP27 set to take place in Egypt, the world will be watching to see how public and private sector are responding to critical issues and integrating ESG into their strategies.
- F&B industry overview 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. Additionally, sustainability 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.
- Value creation of digitalization in Egypt’s construction industry: While the property market is witnessing unprecedented demand for products, development margins are continuing to be squeezed due to spiraling construction costs and wider market implications impacting affordability. These factors have led 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: While the COVID-19 crisis has incited a massive paradigm shift in the way people work and live, it is also providing a once in a lifetime opportunity to shape a better future of work. 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.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion in 2021, operations in over 80 countries and a global workforce more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
About JLL MEA
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 1050 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca and Johannesburg www.jll-mena.com.