The Egyptian real estate market has seen notable changes recently as companies have started to gradually increase unit prices, affected by the increase in building materials from last October.
Several real estate developers believe the current time to be the best ever to buy new properties ahead of the next price hike due to the current wave of inflation around the world.
Tarek Shoukry, head of the House of Real Estate Development at the Federation of Egyptian Industries and Undersecretary of the Housing Committee at the House of Representatives, expected prices to rise in the real estate market due to the rise in property prices. construction materials.
He added that concrete makes up a third of the construction process, which has seen an increase of around 80%. Cement has only increased over the past month from 800 EGP to 1250 EGP, and a third of the construction process is finishes which have increased by about the same percentage, so the cost of construction has increased. about 25 to 30%, in addition to the cost of land and operations.
Shoukry has forecast price spikes of between 10% and 15% over the next two months, advising clients to buy quickly before the inflationary wave takes its toll on properties that will be developed in the coming period.
Yassen Mansour, president of Palm Hills Developments, said the coming period will see real estate prices rise by average rates of up to 10%, due to rising prices for building materials.
Mansour added that the purchase of properties is the safest investment to face inflation, predicted a significant increase in the demand for real estate purchases in the current and future period.
The Egyptian real estate market is very strong and healthy due to the large increase in population, which is creating a real demand for real estate, he revealed.
Nader Khozam, President of Go Khozam Developments, said: âWith the global inflationary wave, the need to accelerate the construction works of the units sold increases with the expectations of a high construction cost. “
Khozam also expects price increases of between 10 and 15% in the property market in the coming period.
He pointed out that these price increases are pushing real estate companies to be flexible in the spaces of units offered as well as payment plans to maintain sales growth in the real estate market.
Even with the expectations of price spikes, the real estate market continues to sell due to its dependence on real demand, he explained, adding: âReal estate is a fundamental good for every citizen. In addition, the initiatives taken by the State to support the purchasing power of citizens, the most recent of which is the initiative of the Central Bank of Egypt for mortgage financing at an interest rate of 3%, help revitalize sales.
Abdel Rahman Khalil, CEO of Sari Real Estate, also expects price increases in the real estate market in the coming period of between 10 and 15%, given the global inflationary wave and its impact on property prices. building materials, which make the current period the most suitable time to buy before the start of 2022.
Khalil noted that steel and other building materials account for 15% of the construction cost of any project in general.