Cairo Office Market 2019
Egypt’s macro-economic situation continues to improve on account of prudent policy measures. Headline inflation is projected to decline from an estimated 20.9% in FY-18 to approximately 15.8% in FY-19, while real GDP is set to accelerate to 5.5% in FY-19 from 5.3% during the previous year. The recovery in growth is underpinned by a pick-up in private sector activity and investments and improvements in net exports. Even though the country’s PMI slipped to 48.2 in May, it registered a growth of 50.8 in April, indicating a positive outlook driven by strong domestic demand and an uplift in exports. The country’s tourism sector has also rebounded, with revenues estimated at USD 12.5 Bn up by 28% from USD 9.8 Bn in FY-18.
Positive developments across these key economic indicators have improved the country’s attractiveness as a place of business. It is reflected in the FDI inflow which is projected at USD 9.5 Bn in FY-19 compared to USD 7.9 Bn in FY-18.
On the back of positive macro-economic changes, the local business sentiments have improved and demand for Grade A office space has increased.