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South China Morning Post
6 days ago
- Business
- South China Morning Post
Logistics rents extend slump in China as suppliers relocate to hedge against tariff war
Rents on logistics properties in mainland China extended a slump into the first half of this year, with experts forecasting little relief in the coming months as more companies choose to relocate their operations outside the country to hedge against rising US-China trade tensions. Rents declined 12.8 per cent in the first six months from a year earlier, property consultancy Knight Frank said in a report on Wednesday. The market weakened by 14.1 per cent in the July to December period last year. Beijing and Shanghai, China's main commercial centres, highlighted the shrinking demand as rents tumbled 17.2 per cent and 11.3 per cent, respectively, this year. The vacancy rate climbed to 28.9 per cent in Beijing and 26.8 per cent in Shanghai, and the worst may yet be ahead given US President Donald Trump's tariff war. 'The prospect of rents bottoming out is unlikely within the next 12 months,' said Christine Li, Asia-Pacific head of research at Knight Frank, citing US-China trade tensions as a key driver of client relocation. 'Beyond that, it's a wait-and-see on how Trump's policies will shift trade in the region.' An aerial photo shows a logistics transfer centre in Hengfeng County in eastern Jiangxi Province. Photo: Xinhua Logistics property owners are losing out to their rivals in India, Knight Frank's data showed. The South Asian nation reported the strongest logistics rental growth in the Asia-Pacific region, driven by sustained demand from the manufacturing sector. Rents climbed 3.4 per cent, versus 2.1 per cent in the second half of 2024.
Arabian Business
21-07-2025
- Business
- Arabian Business
Cairo office market to expand by 82% by 2029, says Knight Frank report
Cairo's office market is set to grow significantly, with total stock expected to rise by 82 per cent by 2029, according to Knight Frank's latest Cairo Offices Market Review. The report highlights rising rents and sales prices across the city in the first half of 2025, as demand continues to grow. Faisal Durrani, Partner – Head of Research, MENA, Knight Frank, said: 'Cairo's current office stock stands at 1 million sqm, with an additional 818,000 sqm slated for delivery by 2029. This represents an 82 per cent growth in the office market and reflects Cairo's growing economy and its increasing appeal as a regional business hub, attracting both local enterprises and international corporations.' New Cairo leads office market surge The city's performance also features in Knight Frank's Africa Office Market Dashboard H1 2025, which tracks trends across 29 African cities. The Egyptian capital is ranked as one of the top-performing office markets on the continent, second only to Lagos in terms of prime rents. New Cairo plays a leading role in this expansion, accounting for 73 per cent of the city's current and future office stock. It also records the highest sales values, with an average price of EGP 274,000 per sqm in H1 2025 and premium spaces reaching EGP 466,000 per sqm. Durrani added: 'New Cairo's dominance extends to the office leasing sector, where New Cairo recorded the highest rents and year-on-year growth exceeding 2 per cent. This consistent performance cements its position as the city's premier destination for businesses seeking prime, well-connected office locations that offer both prestige and functionality.' Flexible office providers such as MQR, KAPITALIZE, KMT House, CO-55, and Regus continue to grow their presence in the area. The International Workplace Group (IWG) has also announced plans to expand its footprint in Egypt from 18 to 150 locations by 2030. Developers are supporting market growth by offering extended instalment durations and reduced down payments. Projects set to be delivered in 2025 have an average payback period of 4.4 years, while those completing in 2029 see this extend to 7.8 years. 'This extended payment flexibility is a crucial incentive, designed to make investment more accessible and attractive to a wider range of businesses and investors by easing the financial burden and encouraging long-term commitments to the market,' the report noted. Zeinab Adel, Partner – Head of Egypt, Knight Frank, further explained: 'Real estate investment is growing across the MENA region and Cairo offers a more affordable option than other nearby GCC markets. These lower barriers to entry for GCC and international investors are helping to fuel further growth, while the longer instalment periods offered by developers not only encourage investment, but also highlight the increasing confidence in the market's sustained growth.' While New Cairo leads the market, West Cairo is emerging as an alternative for companies looking beyond the primary hub. El Sheikh Zayed recorded average sales prices of EGP 229,000 per sqm, while 6th of October City saw average prices around EGP 171,000 per sqm. Adel said: 'El Sheikh Zayed, 6th of October City and West Cairo offer distinct advantages, including proximity to residential communities and a growing commercial ecosystem, making them viable alternatives for businesses expanding or relocating within Cairo.' He added: 'New Cairo offices command the city's highest average prices thanks to the area's modern infrastructure, strategic location and the concentration of high-profile businesses and amenities. However, when you look at the maximum sales prices achieved, the gap between New Cairo, El Sheikh Zayed and 6th of October City narrows, suggesting compelling opportunities exist for investors looking for a more accessible entry point into the Cairo market.' Despite a projected dip in new supply in 2026, the market is expected to grow in the following years. Supply is forecast to peak in 2028 at 309,000 sqm, representing 38% of the total future pipeline to 2029. Major developers contributing to this expansion include LMD, The Waterway Developments, Centrada Developments, La Vista Developments, SERAC Developments and SODIC. Their investments are increasing stock and contributing to the range and quality of office space available. 'These developments are collectively shaping Cairo's urban landscape, reinforcing its status as a thriving business hub in the region and a magnet for both domestic and international investment. Our research paints a picture of a market in full swing, characterised by strong fundamentals, strategic developer initiatives and a promising outlook for continued growth and investment, solidifying Cairo's position on the global business stage,' he concluded.
