In 2004, the government began selling large plots of land along the urban core to developers. This spurred a development boom around the cities and created new communities. To further drive the market, the government is now working to restructure real estate related regulations to further attract investors and developers.

The JLL report found that "despite the global economic turmoil, the underlying fundamentals of the Cairo real estate market have remained largely intact during 2009." Executives believe the market will continue to grow in 2010 and beyond.

For example, the majority of class A space in the city is 100% leased and new supply is not expected to come online until 2013. These two factors will allow landlords to increase rental rates despite the global crisis.

The retail market is also experiencing shifting conditions based on under supply. Most large shopping centers in the area have a vacancy rate of 5% or less. Still, major new malls are unlikely to be built in the year ahead; rather consumer demand is looking for grocery-anchored and convenience stores. Therefore hypermarkets and hypermarket-based malls are likely to see the most development.

To meet the growing market, JLL has plans in place to open its first African office. By the end of this quarter the company will be located in Cairo.