Property prices in Cairo’s two large satellite cities rose by 8 percent at the beginning of 2013, amid wider economic turmoil and Egypt's ongoing battle with high inflation.
Sale-price rises in New Cairo and 6th of October City are “largely due to developers seeking to pass on increases in construction costs to end buyers,” according to a report issued today by Jones Lang LaSalle.
The real estate firm, which measured villa and apartment prices in the two areas, said the 8 percent price rise was felt in the first three months of this year compared with the last quarter of 2012.
Asking prices for apartments in New Cairo rose by 4 percent to $1,180 per square meter, while villa prices rose by 9 percent.
The 6th of October area saw apartment prices rise by 8 percent to an average of $1,071 per square meter, with a 7 percent hike in villa costs.(...)
Egypt is currently grappling with soaring inflation among other economic woes. The government is currently in talks with the IMF to secure a $4.8bn loan.(...)
Cairo’s hotel market “continues to slowly recover” since the revolution hit Egypt’s tourism industry, the report noted.
“[Hotel] occupancy rates currently stand at 51 percent in January 2013, showing a 5 percent increase compared to the same month last year…
Hotels in Central Cairo are adopting a number of strategies to increase occupancy levels, including discounting room rates. Despite improving occupancies, the average daily rates in January have declined by 7 percent compared to 2012, falling from $54 to $50.”