Expectations of a 30% rise in “real estate” during 2023
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Experts in the real estate sector expected real estate prices to rise by up to 30% over the next year, coinciding with the successive increases in construction costs and the decline in the value of the pound against the dollar.
Ahmed El-Shennawy, Chairman of the Board of Directors of Adva Real Estate Development Company, said that it is likely that real estate prices will increase by between 20 and 25% during 2023, stressing the difficulty of any increases before the end of this year.
Al-Shennawy added, in statements to Al-Mal, that the main problem behind the increase in the cost of implementation lies in the liberalization of the exchange rate, not only in the high prices of construction inputs – as he described it.
He expressed his hope that the increase in real estate prices during 2023 would be reasonable, so that there would be a demand for buying, pointing out that the public’s vision in the recent period has completely changed towards owning real estate, as it is a safe haven and a store of value.
In a related context, Fathallah Fawzi, Chairman of the Board of Directors of MENA Real Estate Consultancy, explained that real estate prices are expected to increase by between 25 and 30%, pointing out that it is possible to translate these increases by the end of this year.
Fawzy pointed out that there are several real estate development companies that have resorted to raising unit prices in their various projects, especially after the flexible liberalization of the Egyptian pound exchange rate last October.
And he added that if the Egyptian pound was floated again at the next central meeting, this would result in an increase in the cost, and then an increase in the price of the final product represented in the various real estate units.
And he believed that the appetite of investors and individuals towards real estate is still high, considering that any crisis that afflicts the local and global economies results in the consolidation of the awareness among Egyptians of the feasibility of owning real estate, as a tool to hedge against inflation. For his part, Jasser Bahjat, president of Madar Real Estate Development Company, confirmed that real estate prices in Egypt will witness a rise that may exceed 20% during the next year, but that the sector companies still have expansion plans.
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