The Egyptian retail sector is witnessing growth in demand despite several challenges, according to the report “Egypt Real Estate Report” by property consultant Savills Egypt.
The study focuses on the retail and office sectors, highlighting key setbacks faced by the industry over the past year.
Crucial factors such as global supply chain bottlenecks, import restrictions, local currency devaluation, widespread inflation and spillover effects from the Russian-Ukrainian conflict have taken their toll on the local retail market, the report claims.
Head of operations at Savills Egypt, Sherine Badreldine, said: “The global retail industry has faced unprecedented challenges over the past year, but Egypt still has significant potential for growth and development.
“The Egyptian retail industry remains at an early developmental stage and is highly underserved in terms of experiential retail concepts, entertainment options, and the limited presence and diversity of international brands. There are also clear opportunities for the sector due to Egypt’s young demographic.
“Retailers must adapt their offerings to better serve Generation Z as this consumer segment is eager to remain up to date with global fashion movements and are more inclined to shop at physical stores with technology-enhanced shopping experiences.”
Savills Egypt noted the current market dynamics favour retailers, allowing ample room for negotiations with landlords, who are actively offering flexible and generous lease terms.
The average retail rental rates in Greater Cairo stand at EGP 940 per square meter per month with an 85 per cent occupancy rate. In West Greater Cairo, the retail rent averages EGP 820 square metre per month with a 79 per cent occupancy rate. Central Cairo saw the average as EGP 900 with a 90 per cent occupancy rate, while East Greater Cairo’s stood at EGP1,020 with an 88 per cent occupancy rate.
