The real estate market in Cairo was “steady” in the third quarter despite falling property prices in most areas, according to JLL.

The weaker Egyptian currency pushed residential sales prices down but saw the volume of transactions increase, the consultancy said.

Sales prices for residential apartments and villas in New Cairo decreased 4% and 2% respectively in Q3 with the devaluation of the Egyptian Pound, while rentals increased 4% for apartments and 6% for villas, JLL said. 6th of October City was the only city where sales prices for villas increased – by 3% – due to a shortage of new supply.

“With the devaluation of the Egyptian Pound, there is a marked decrease in sales prices of apartments and villas in New Cairo, which is resulting in increased transactions. This aspect along with lower rental values has infused positivity into the Cairo residential market,” said Ayman Sami, head of JLL MENA’s Egypt office.

“Cairo’s real estate market has maintained a steady performance and improved sentiment this quarter due to positivity in the overall macro environment,” he added.

“However, shortage of affordable housing still remains an issue but the good news is that new government initiatives are starting to address this critical gap in the market.”

JLL said increasing demand for office buildings has seen vacancy rates in commercial property fall to 26%. It said the biggest demand for space has been in Sector 2 of New Cairo, where rents have increased 28% over the past year.

“In this positive economic environment, there is a trend among tenants to relocate to New Cairo to take advantage of better workspace,” Sami said. “Increased demand for efficient offices has lowered vacancy rates to 26%, and ultimately resulting in exceptional performance for the Cairo office market this quarter.”