Thursday, June 17, 2010

Cairo, the Strongest Performing Real Estate City in the World

Cairo, 15 June 2010 - Jones Lang LaSalle, the world's leading real estate investment and advisory firm and the largest in the Middle East and North Africa (MENA), has reported that Cairo was the strongest performing city globally in terms of change in prime office rentals in 2009.

In his keynote speech at The Euromoney Egypt Housing & Real Estate Finance conference in Cairo, Mr. Avik Rakhit, Director for Jones Lang LaSalle MENAJones Lang LaSalle MENALoading..., explained that the reason behind this performance was Egypt's strong and fast growing population base, high demand regionally, and rising levels of prime commercial product.

Supporting this further is Jones Lang LaSalle Middle East and North Africa MENA
Region's Real Estate Investor Sentiment Survey, released in April 2010, which incorporated the views of over 100 institutional investors - which clearly showed that investor sentiment in Egypt is increasing.

"Our survey questioned investment companies, sovereign wealth funds, investment banks, private equity firms and high net worth investors. 80% of those questioned saw Egypt's economy recovering within 12 months, placing Egypt as the second strongest market within the region behind Saudi Arabia."

The driver behind this growth, Mr. Rakhit explained, is that Egypt is able to leverage its strong population base and growing economy. He illustrated this by highlighting a report by Global Insight 2010 where Egypt is shown to be the strongest performing economy in MENA over 2010-2011.

However, as Mr. Rakhit points out, "For Egypt to fully maximize its potential on the real estate global market, there are opportunities that need to be exploited; data sharing/clarification, increased mortgage penetration as well as the continued government support for reforms in investor support mechanisms, only then Egypt's offering to investors will greatly increase."

"As a global advisor, Jones Lang LaSalle is looking to support the country's real estate sector and so as to position Egypt firmly in the global real estate market," he concluded.