Savills Retail Connect navigates Egypt's retail boom: Rents up 24%، East Cairo leads demand surge

Savills Egypt، the local arm of the leading global real estate consultancy firm، successfully concluded the second edition of Savills Retail Connect. This exclusive event brought together over 100 industry leaders for a day of collaboration and knowledge sharing، focusing on navigating Egypt’s dynamic retail landscape، currently experiencing a boom.

Savills Retail Connect served as a platform for attendees to explore the latest trends shaping the industry، including the rise of experiential retail، as consumers increasingly seek engaging experiences within physical stores، mirroring a global shift. “Egyptian retailers are embracing experiential retail to stand out in a crowded marketplace،” emphasized Catesby Langer-Paget، Head of Savills Egypt. He also emphasized the need to cater to Egypt’s youthful population who place a premium on demand convenience and product diversity.

Online shopping platforms

E-commerce's continued growth، with its convenient online shopping platforms and digital payment methods، was also a key area of discussion. Savills Retail Connect emphasized the need for omnichannel retailing، where retailers integrate digital and physical channels to create a seamless shopping journey. This approach caters to the evolving consumer who may research online but still value the in-store experience.

The event delved into market data، revealing a significant 24% year-on-year increase in rents across Greater Cairo. West Cairo recorded the highest rate of increase in the value of commercial rent by approximately 30%، compared to the same period last year with the average rental price in the area reaching EGP 1،068 per commercial square meter. East Cairo rental prices witnessed an annual increase of 22%، maintaining its position as the most in-demand area، as the average rental price reached EGP 1،239 per commercial square meter. Average rental prices in Downtown Cairo rose by 21% per commercial meter last year، bringing the average rental price to EGP 1،092 per commercial square meter.

Popularity of local brands

Discussions also addressed the growing popularity of local brands catering to Egypt's price-sensitive consumers. “Savills Retail Connect underscored the importance of understanding what is happening today in Egypt’s retail market. The sector needs to address and bridge the gap between the retailer/operator perspective and the landlord's perspective. Additionally، the market must comprehend the importance of the emerging trend towards local authenticity and cultural relevance،” added Philopateer Dimitri، Head of Commercial Agency at Savills Egypt.

The growing interest in health and wellness products، reflecting a global trend towards healthier lifestyles، was another key topic. Savills Retail Connect showcased how this trend can be incorporated into retail spaces، potentially attracting new customer segments.

Commenting on the importance of accurate and real-time footfall analysis of retail spaces، which has been recently emerging in Egypt، Head of Property Management Egypt at Savills Corina Stamate said: “An increase in footfall doesn't always result in a uniform increase across all retail categories. It typically contributes 60-70% for the main retail category، for which the project is positioned، with the remainder distributed among several other categories.”

Savills Retail Connect fostered valuable networking opportunities as attendees، including retailers، developers، and investors، forged new connections that will propel the industry forward. The event concluded with a sense of optimism for the future of Egyptian retail، with a clear understanding of the opportunities and challenges that lie ahead.

Savills Retail Connect serves as a testament to Savills Egypt's commitment to supporting the growth and development of the Egyptian retail sector. By connecting industry leaders، fostering knowledge sharing، and providing insights into market trends، the event empowered attendees to make informed decisions.