Demand for office space is driven by a mix of relocation, expansion and expansion led consolidation.
Savills, the Middle East’s leading real estate services provider, has released its latest report on the Egyptian market analyzing the Cairo Metropolitan Area (CMA) office market for the first half of 2019.
Cairo’s real estate market continues its rapid growth. Construction of large-scale real estate projects has been stimulating economic expansion and driving demand for Grade A office projects. There is a systematic shift of tenants towards newer developments away from the erstwhile central business hubs in Central Cairo, towards modern speculative and purpose-built developments across New Cairo in the East and Sheikh Zayed City in the West. Demand is also driven by new market entrants - both domestic and global – along with expansion and consolidation exercise. The city’s strong demographic vantage in terms of young, educated and comparatively low-cost workforce and a further improvement in global investor confidence towards the economy in the medium-to-long term will continue to drive demand for office real estate in the city.
According to Catesby Langer-Paget, Savills’ Head of Egypt, “As the Egypt’s macro-economic situation continues to improve on account of prudent policy measures, our recent research shows that the demand for office space in Cairo has increased, driven by a mix of relocation, expansion and expansion led consolidation exercise. We noticed strong interest from the pharmaceutical sector, technology, banking and financial services and media firms to occupy Grade A space within the city. To meet this growing demand, we anticipate approximatively 155,500 sqm of Grade A space to be handed over across key areas such as New Cairo and Nasr City over the next six months.”