The real estate market in Egypt is suffering from a long period of stagnation, and a very large percentage of apartments and real estate are offered for sale. Unfortunately, there is no interest in buying due to prices that are very high compared to reality. I wonder what are the reasons for the high prices of apartments and real estate in Egypt.. and the rate of increase in prices is reaching Lakam
All economists have agreed that the Egyptian market is suffering from a real estate bubble, especially since a very large percentage of apartments and real estate are offered for sale and the demand for purchases is very weak. This is due to the very high prices that are offered, and these numbers are very far from reality and the real price of apartments, and this is what led to There is a state of complete sluggishness in the real estate market in Egypt.
So, how much does the real estate increase rate in Egypt reach?
All real estate experts have unanimously agreed that the prices of real estate sales and rents in Egypt are rising due to the government’s policy of liberalizing the exchange rate of the Egyptian pound in front of foreign currencies, and this has caused an increase in the cost of construction. However, Egypt has a very large demand for purchases, and this is a factor in a state of popularity among owners. Therefore, they are very high in prices, and the numbers for which properties are offered in Egypt have become much higher than their real price, and thus the demand for purchases has become low, especially after the recent decisions of the Egyptian state to offer more than one residential project. Citizens have the opportunity to obtain various housing units, whether in distinguished housing projects, whether it is Sakan Misr, Dar Misr, or Sakan Misr. This is other than social housing, which is about to open the door on the 18th of this month of November for our sisters with disabilities, and a week later the ministry will open the door for reservations for everyone. Egyptians to reserve the largest offer of social housing apartments for low- and middle-income people.
Real estate experts also confirmed that interest rates have a significant impact on the rise in real estate prices in Egypt, especially since the prices of units that have a long payment period include the interest rate, and for this reason, real estate prices rose by a rate ranging between 145-148% in the third quarter. From 2024.
Experts confirmed that real estate prices in Egypt will continue to rise, especially since the last meeting of the Monetary Policy Committee of the Central Bank did not reduce interest rates, and therefore real estate prices in Egypt are still high.
Real estate consulting companies said in their report on the performance of the real estate market in Egypt, that the progress achieved by Egypt in the field of real estate investments was due to the huge foreign direct investments that entered the Egyptian economy, and this is not the approval of the International Monetary Fund to increase the loan from 3 billion dollars to 8 billion dollars, This resulted in a very significant growth in the real estate market in Egypt in the last quarter of this year
The companies’ report said that rental prices for residential units rose by 124% over their actual prices.
