Egypt’s office, retail space demand sees growth in 2023 despite challenges

 Egypt Real Estate Report, issued by Savills Egypt, highlighted the challenges the industry has faced over the past year, how they affected the different stakeholders and how they’re responding to the changing market.

 

The report, which focuses on the retail and office sectors, said that the retail market was naturally impacted by the global supply chain bottlenecks, import restrictions, local currency devaluation, widespread inflation, and spillover effects from the Russian-Ukrainian conflict. 

 

“However, the F&B sector has observed a rise in new local brands that provide creative experiential dining and take-out concepts. Several international F&B brands, especially from Europe have made their way to the Egyptian market as well,” it added. 

 

Savills Egypt's report also revealed that the current market dynamics favor retailers and F&B operators, allowing more room for negotiations with landlords, who have started offering flexible and generous lease terms. To ensure that sizable developments are fully leased and well-perceived within the market, landlords have begun incorporating prelease agreements with international groups, retailers, and operators.