Government initiatives support Cairo’s real estate


July 15, 2020 | By RetailME Bureau

Cairo Egypt

Cairo’s real estate market remained stable in quarter two supported by government initiatives, despite challenging global economic conditions, according to JLL’s Cairo Real Estate Market Performance report.

Download the report

“The real estate market in Egypt continues to benefit from the various initiatives that have been put in place by the government across all sectors. We anticipate this to continue driving demand and attract international investments in the mid-to-long term,” said Ayman Sami, country head, JLL, Egypt.

Primary and secondary rents in the retail market have increased by 5% to 10%, respectively, annually. These are expected to remain stable with mall operations gradually getting back to normal. Landlords continue to offer incentives to support tenants that include waived service charges and rent-free periods. Some landlords have also adopted a revenue-share model to support retailers to account for the loss of sales.

E-commerce is still on the rise as consumer preferences lean towards online shopping, allowing for a prominent number of home-grown businesses to emerge.

Also read: E-commerce set to grow in Egypt

The government continues to support the sectors most impacted by the pandemic with initiatives such as allowing corporates to pay income tax in three instalments rather than one. The government has also increased the tax exemption limit from EGP8,000 to EGP15,000 for all employees, while increasing the annual income of the public sector and state employees by 7% and 12%, respectively.

In light of travel restrictions, the hotel market witnessed a significant decline as occupancy levels registered 42% in the YT May 2020, the lowest rate registered since 2013.

In a move to soften the impact on the hospitality sector and boost domestic tourism, the government allowed hotels to reopen to local tourists in May and operate at 25% capacity – provided the properties comply with strict precautionary guidelines. The government has also committed part of the EGP43.11 billion ($2.7 billion) emergency support loan granted by the International Monetary Fund (IMF) to the hospitality sector, in an effort to support the sector further.

 

For all the latest retail news from the Middle East, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Rajiv Warrier, Chief Executive Officer, Choithrams

Since the launch of its first store in the UAE five decades 

Continue Reading

March 20, 2024 | By RetailME Bureau
Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau
Majid Al Futtaim Retail commits to Collaborative Impact Goals at COP28

Majid Al Futtaim Retail, which owns the exclusive rights to operate Carrefour 

Continue Reading

December 8, 2023 | By Rupkatha B
BinDawood Holding Company earns Honorary Shield for Compliance Excellence

BinDawood Holding Company has earned an Honorary Shield, a distinguished recognition by 

Continue Reading

December 6, 2023 | By RetailME Bureau
First Movers Coalition for Food to create up to $20-bn value chain for sustainable farming

The World Economic Forum, with support from the Government of the United 

Continue Reading

December 5, 2023 | By RetailME Bureau




Download Images RetailME Magazine