More clarity is returning to the Egyptian real estate market

More clarity is returning to the Egyptian real estate market as the dust settles after the revolution last year but the upcoming presidential elections should create more certainty in the second quarter of 2012, according to a new report by Jones Lang LaSalle.

Super Regional and Regional Malls will account for 29 percent of total mall-based retail stock by 2015 in Cairo, which is currently under supplied with retail malls, according to the report titled "Cairo Real Estate Market Review: Q1 2012."

The residential segment has seen an improvement in performance and sentiment in the first quarter of this year after there was closure on some legal cases of land ownership, the report noted.

Demand for housing in new urban cities will likely continue as more companies decentralise and employees seek residences closer to their workplace, the report stated.

There were no additions to the supply of retail malls in Cairo in the first quarter but 2012 could witness an additional supply of 160,000 square meters, which includes Emerald Centre and Capital Mall, it added. By the end of 2014 total retail gross leasable area (GLA) could double its current level to reach around 1.6 million square meters as new major malls and retail projects are expected to enter the market.