Commercial real estate trends to watch for in Egypt 2023!
Egypt's commercial real estate market will continue to develop in 2023. Even though the first half of the year is almost done; it's a sector of the Egyptian economy that is about to undergo major changes.
Several trends are anticipated to impact the industry this year, ranging from the integration of AI and technology to shifting consumer preferences and economic factors.
Whether you're an investor, developer, or simply interested in the latest developments in the Egyptian real estate market, read on to discover the trends to watch for in the coming quarters and what they could mean for the industry's future.
With that said, let us delve deep into the commercial real estate trends in 2023!
Commercial real estate trends in Egypt 2023!
#1 Advanced technology and AI
The increased use of technology and artificial intelligence in commercial real estate is one of the most important trends to look out for in 2023.
Developers and property managers are using technology to streamline procedures, boost productivity, and improve tenant experiences as the industry continues to change.
For instance, property management software can assist in automating processes like rent collection and maintenance requests, and smart building technologies can increase security and energy efficiency.
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#2 Consumer behavior changes
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A further development to look out for in 2023 is a shift in consumer preferences. There has been an increase in demand in recent years for mixed-use developments that provide a variety of amenities and services in one place.
Developers are anticipated to continue putting more of an emphasis on building communities that cater to the requirements and preferences of contemporary consumers in 2023, continuing this trend.
Mixed-use developments, which include everything from co-working spaces and fitness centers to restaurants and shops, are gaining popularity, such as Mivida Business Park, and Arkan developments, especially with young professionals and families.
#3 Economic factors
Additionally, economic factors are probably going to have an effect on Egypt's commercial real estate market in 2023.
The hospitality sector is anticipated to experience increased demand as tourism recovers, over the next three to five years, Hilton Worldwide plans to almost double the number of projects it is working on in Egypt.
This year, two of its hotels, including the first "Waldorf Astoria" luxury brand in Egypt, will open in Cairo-Heliopolis.
The government is also making efforts to strengthen the tourism industry by developing and updating the nation's many tourist attractions, enhancing connectivity throughout the nation, and enhancing the infrastructure of the nation.
Furthermore, Egypt has announced a five-year tourist visa for more than 180 nationalities in an effort to meet its 2028 target of 30 million visitors and increase tourism in the nation. Tourists are drawn to the nation as a result of the currency devaluation in Cairo because they perceive it to be a more affordable option than other locations.
The retail sector is anticipated to rebound as consumers increasingly prefer in-person shopping experiences. Egypt's large population and acceptance of retail shopping and outings in its culture give the retail sector reason for optimism.
Due to their accessibility and the slightly better performance of the F&B segment, strip retail, and community centers performed better than regional and super-regional malls.
As for the offices’ sector, the hype surrounding flexible offices is back in Cairo as a result of the current inflated rents and Egypt's unstable currency situation, and more tenants are turning to signing short-term flexible leases of fitted office units.
Flexible office operators are planning to expand in the capital as a result of the rising demand for flexible office units.
What are the challenges that could face Egypt this year?
The industry, unfortunately, will also have to deal with some difficulties in 2023. As an example, rising inflation and interest rates may have an effect on property values and make financing more difficult.
Additionally, the industry may be impacted by political unrest and security issues, particularly in high-risk regions.
Despite these obstacles, there are a number of reasons to be hopeful about the Egyptian commercial real estate market in 2023.
For instance, the nation's advantageous geographic position and expanding economy make it a desirable location for foreign investment, and the government's dedication to infrastructure development fosters new business opportunities for investors and developers.
How can we help?
At Tayf we handle the complete process from research to marketing and operation of real estate. We also provide commercial property management.
And we currently manage our own multi-purpose commercial building in the heart of Mivida Business Park called Llivia where we operate, maintain and oversee our commercial properties and all it encompasses.
Additionally, you can contact us to know more about commercial real estate trends!
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